PE Rollup Interview

Hi all,

Interviewing at a MM fund that focuses on rollups. I'm pretty well-versed in 'standard' buyout and growth PE, but would be great to get some pointers as to the types of deal type-specific questions I might face. Initial thinking was:

  1. Why do rollups?

  2. What market/competitor dynamics make for an attractive rollup opportunity?

  3. What makes for a good platform deal?

  4. Rollup strategy

  5. Accretive / dilutive acquisitions

  6. Exit strategy / multiple expansion

Comments (2)

Most Helpful
  • Associate 3 in PE - LBOs
Nov 29, 2021 - 1:06pm

The questions you've listed are all likely to be asked in some form or fashion - at a high level, you want to chase highly fragmented industries that have barriers to organic growth (eg. highly contracted), comprised of unsophisticated players that trade for low multiples vs. your entry and offer material benefits of scale (savings via consolidated back office / purchasing / inventory, ability to serve multi-regional customers with larger footprint, consolidation of highly skilled labor, etc.).

I'm guessing this is a lateral position given your tag - you will likely get a lot of grilling around your deal experience and your ability to lead aspects of the transaction at a VP-like level. Most buy-build PE firms (from what I've seen) usually have partners/principals chasing the platforms while VPs are providing high-level oversight of portco M&A and the associate is quarterbacking much of it with the portco CFO or VP of M&A. Be ready to talk about managing third parties, running with term sheets / LOIs, etc.

  • Associate 1 in PE - Growth
Nov 29, 2021 - 5:29pm

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