Strategies

We Keep It Light

Roper’s cash-focused business model emphasizes low working capital needs and minimal capital expenditure requirements. Our businesses do not require large investments in property, plant and equipment in order to grow. Rather, we rely on intellectual capital, application engineering expertise, and expanding channel distribution and channel management to drive growth. As a result, capital expenditures represent approximately 1.5 percent of sales. We also carefully manage inventory, payables and receivables in order to minimize working capital requirements, which helps to reduce the Company’s overall risk profile.

This strategy of cash generation and reinvestment enables us to find and acquire new growth businesses. The Roper acquisition and integration process is highly disciplined and adheres to a strict set of well-defined criteria. We look for cash-accretive businesses with low capital investment needs. Candidates must either complement an existing Roper business or serve as a platform to enter a new growth market that offers multiple expansion paths. We buy businesses in order to grow them. Accordingly, we seek talented and proven management teams that are eager to adopt Roper’s governance practices and share our desire for growth and value creation.