Private equity rolling-up scenarios?

Hi,

Short answer - yes you may need to cover everything.

In the PE case ask in the beginning what's the objective (exit multiples) and desired exit time. Also, ask what is the strategy of the PE firm (Expertise in some area, other companies in the portfolio to have synergies with)

Then make a structure:

Market

• Size
• Growth rates
• Profitability
• Segments
• Distribution channels

Competition

• Market shares of competitors and their segments (see the next point)
• Concentration / fragmentation (Fragmented market with lots of small players is less mature and easier to enter from a scratch. Concentrated market is hard to enter but has potential acquisition targets)
• Unit economics of the players (Margins, relative cost position)
• Key capabilities of the players (e.g. suppliers, assets, IP, etc)

Company

• Unit economics (Margins, costs) in current or target markets
• Brand
• Product mix
• Key capabilities

Feasibility of exit:

• Exit multiples
• Exit time
• Existence of buyers

Best!