I was discussing an interesting acquisition situation the other day with a long-time business friend of mine. She was looking at acquiring small a privately-held company in the specialty logistics space as a launching pad for a roll-up strategy. Her target was a company with an amazing customer list and a stellar 40-year reputation. It was underperforming operationally, which offered rich efficiency upside. The owner (age 70+) was interested in retiring.
Sound fabulous? Dig deeper.
If you are involved in executing a roll-up strategy, sooner or later you will come upon a potential target where the owner is the founder and long-time “face” of the business. In such a case, The Merger Verger has three words for you:
Approach with caution.