QualityStocksNewsBreaks – Sugarmade, Inc. (SGMD) Employs Aggressive M&A Roll-Up Strategy
Sugarmade (OTCQB: SGMD), a major supplier to the hydroponic cultivation and hemp sectors, is pursuing an aggressive merger and acquisition (“M&A”) roll-up strategy to position itself as a leader in the hydroponics sector. The company is presently in preliminary talks with six hydroponic and agricultural supply targets in the U.S. and central Europe. SGMD is targeting companies with an EBITDA margin of at least 8% and prefers to pay a reasonable multiple to revenue, with 10% in cash and 90% in stock with exact terms dependent on market conditions. Sugarmade recently closed its acquisition of BZRTH Inc. for roughly 1x…