Question for investors / searchers with roll-up experience

January 30, 2026

by a searcher in Madrid, España

From your experience, what are the key best practices to successfully execute a roll-up strategy? Specifically, what do you value most as investors? 1.Having a strong and scalable platform before pursuing add-ons (team, margins, processes) 2.A clear add-on timeline (e.g. executing within the first 18–36 months vs. very gradual M&A) 3.Committed capital for add-ons upfront vs. deal-by-deal capital calls 4.Strict price discipline and a repeatable acquisition playbook 5.The expected level of real integration (back-office, branding, procurement, operations, etc.) Would really appreciate any insights, including what worked well and what didn’t 🙏

Reply by an investor
from Columbia University in Fairfax, VA, USA

Unless you have a track record having built a platform / roll-up, it's a combination of #1 and #5 that matters most. Almost every Search / Indy Sponsor investment we've considered or invested in that started as (or evolved into) a roll-up underestimated assumptions across the board (OpEx, CapEx, timeline) when it comes to sourcing, closing, and integration. While staying disciplined on economics often stretches the timeline, the sourcing and closing generally isn't where issues show up... it's in the post-close integration. It always takes longer than expected from an operational standpoint, and more importantly, on realizing true accretive value on the revenue side. OpEx synergies tend to be more visible and easier to execute. It's the revenue synergies that are slower and far less reliable unless there are very clear, well-understood cross-sell and expansion opportunities.

Reply by an intermediary
in Austin, TX, USA

#1 and 4, then 3. #2 and 5 fall into the "its not a race" category. Rushed purchases and integrations are a recipe for failure.

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