Experience with PE backed Rollups?

May 01, 2025

by a searcher from University of Massachusetts (System) in Washington, DC, USA

Hi All, I have a small business in the real estate / hospitality space. Currently we are a strong regional competitor and have primarily grown organically. I am interested in moving a little quicker and doing some geographic expansion through acquisition. Can anyone provide some insights into what partnering with a PE firm would look like?

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Reply by a lender
from University of Southern California in Los Angeles, CA, USA

This is completely possible to do self financed via the SBA program and there is no need to partner with a PE firm. You can buy a competitor with the same NAICS code with 0% down. I’d love to help you find the right SBA lender for this deal. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you. Depending on the DSCR, I think this deal might qualify for pristine pricing (7.99% fixed). You can reach me here or directly at redacted You can also click here to schedule a meeting with me: https://cal.com/ishan-jetley-3d73m8/30min. Look forward to chatting!

Reply by a professional
from Bentley College in Miami, FL, USA

Partnering with a PE firm in a roll-up strategy can definitely help accelerate growth, but it comes with trade-offs. Typically, a PE firm would bring capital, strategic guidance, and acquisition experience — which can be invaluable when scaling through M&A. However, you'll likely give up a meaningful equity stake and may face more structured governance, financial reporting, and growth expectations. Key things to consider: - Alignment of vision and timeline — PE firms often look for an exit in 3–7 years. - Control and decision-making — You may transition from sole operator to co-pilot with a board. - Integration capabilities — The success of a roll-up hinges on how well you can integrate acquisitions operationally and culturally. It’s worth speaking with advisors who’ve worked on PE-backed rollups to map out what that partnership might realistically entail. If you need help connecting with M&A advisors or due diligence experts for that next acquisition or initial deal structuring, DueDilio can be a helpful resource.

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