Roll Up Strategy in Private Equity | Gerry Williams w/ Kison Patel

Gerry Williams, Partner at DLA Piper US LLP and a member of their management committee.

Private equity firms are established for the sole purpose of generating substantial financial returns for its investors. And one of the most effective ways of maximizing investment returns is the roll up strategy. This involves buying small-sized businesses in a highly fragmented industry and combining them into a larger platform. The goal is to improve efficiency and be sold later for a higher price.

In this episode of the M&A Science podcast, we will discuss roll up strategy in private equity with Gerry Williams, Partner at DLA Piper US LLP.

Things you will learn this episode:

• Industries susceptible to roll up strategy
• Challenges of executing roll up strategy
• Negotiating the LOI in roll up strategy
• Typical deal structure in roll up strategy
• Employing Earnouts in roll up strategy

Bookmarks
00:00 Intro
03:53 Industries susceptible to roll up strategy
06:41 The trend of roll up strategy in private equity
11:49 Complexities of Roll up strategy
18:19 Challenges of executing roll up strategy
23:55 How to mitigate risks
28:35 Managing multiple roll up businesses
31:45 Negotiating the LOI in roll up strategy
39:23 Breakup fees on private deals
42:53 Typical deal structure in roll up strategy
52:06 Employing Earnouts in roll up strategy
58:04 Unique negotiations during LOI
59:54 Do’s and Don’ts of executing roll up strategy
1:04:36 Craziest thing in M&A

#Mergersandacquisitions #mascience #strategy #rollups #privateequity
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