Roll-ups remain one of private equity’s most powerful strategies. The logic is simple: buy a set of fragmented businesses, consolidate overhead, and unlock rapid EBITDA uplift. In the first year, this formula usually works. Costs come down, vendor leverage improves, and reported margins rise.

Yet too many platforms plateau after the honeymoon. The gap between deal thesis and delivered value widens over time not because the investment was misguided, but because the integration lacked the discipline to scale.

A 2024 Fortune analysis of 40,000 deals found that 70–75% of acquisitions fail to meet expectations, citing over-ambitious synergies, misaligned incentives, and weak integration planning as core reasons.
PwC’s 2023 M&A Integration Survey echoes the finding: companies without clear governance, defined synergy targets, and disciplined tracking capture less than half of their intended value.

The lesson is clear. Successful investors treat integration not as a project with a finish line, but as the foundation for a high-performance operating platform. That requires four non-negotiable disciplines — applied sequentially and without compromise.

1. Strategic Blueprint: Pre-Close Planning and Operating Model Design

The first discipline and often the one that separates successful roll-ups from underperformers happens before the deal closes. Integration is too often treated as a post-close exercise, when in reality the groundwork for success must be laid in the pre-close phase.

Establish the Integration Management Office (IMO). An IMO should exist before Day 1. Its early role is not execution but design mapping synergies, defining governance, drafting the operating model, and sequencing initiatives.
Design the Target Operating Model. This step moves beyond org charts and spans the future state of decision-making, KPIs, governance cadence, and core processes.
Prepare for Day 1 Standardization. Payroll, supplier continuity, IT cutovers, and customer communications must all be stabilized before close. PwC research shows that nearly 60% of Day 1 issues originate in basic operational gaps that could have been resolved pre-close.
Use Clean Teams Wisely. Where regulatory constraints apply, clean teams allow integration planning to proceed without violating antitrust rules. They also help test assumptions and build the data foundation for synergy tracking.

2. Reality Validation: The First 30 Days

The first month post-close is a reality check and often a sobering one. Many roll-ups falter here because diligence assumptions go untested and integration plans remain tethered to optimistic models.

Stress-Test the Commercial Thesis. Revenue ambitions are almost always overstated. Bain & Company’s M&A research consistently finds that revenue synergies are modeled with far less rigor than costs, and that this gap is a primary reason deals miss their targets.
Run Diagnostics, Not Reports. What matters now are forward-looking diagnostics: throughput, service reliability, network performance, working-capital velocity.
Expect Recalibration. Nearly every integration requires resetting some portion of its revenue ambition once the first wave of diagnostic data comes in. The best operators reprioritize quickly and openly.

3. Execution Discipline: Stabilization and Cost Optimization

Once the blueprint is in place and reality checks complete, the focus shifts to disciplined execution. This is where the integration either builds credibility — or begins to erode it.

Enforce Governance and Cadence. The IMO now becomes the engine of execution. Weekly initiative reviews, monthly performance dashboards, and clear decision rights keep the integration from drifting.
Capture Early Synergies with Precision. Cost synergies are the low-hanging fruit: SG&A consolidation, procurement leverage, and footprint rationalization. PwC reports that companies with structured synergy-tracking programs capture 30% more value than those without.
Build Momentum Through Quick Wins. Early wins deliver tangible savings and build management confidence in the integration plan. This credibility is critical to gaining buy-in for more complex, longer-term initiatives.

4. Growth Sequencing: Unlocking Commercial Value After Stability

This final discipline is where true platform value is built, but it must never come too early. Attempting revenue synergies before the operational foundation is stable is one of the most common — and costly — mistakes in industrial roll-ups.

Respect Operational Preconditions. Revenue synergies almost always lag unless service reliability, throughput, and planning are stable.
Tackle the Common Failure Modes. Cross-sell is the most frequently overestimated synergy lever — and the first to fail if service levels are inconsistent or CRMs remain fragmented.
Evolve the IMO into a Transformation Office. The integration structure should transition from program governance to value-creation leadership. The Transformation Office owns ongoing performance management, growth sequencing, and scaling repeatable commercial capabilities.

The Root Cause: Why Roll-Ups Plateau

Across hundreds of industrial integrations, the same patterns repeat:

Cost synergies arrive first but stop short.
Revenue synergies remain elusive. They are frequently modeled with optimism and pursued too early.
Governance fades too soon. The integration loses focus after initial wins, leaving value on the table.

None of these issues stem from deal quality. They stem from execution discipline — or the lack of it.

Closing: Platforms Without Discipline Fail

The evidence is unambiguous. Most industrial roll-ups fail not because they bought the wrong companies, but because they never built a platform capable of scaling them.

The most successful sponsors and operators follow a disciplined sequence:

Pre-Close: Build the strategic blueprint and design the future operating model.
First 30 Days: Stress-test the commercial thesis and recalibrate ambition.
First 100 Days: Stabilize operations, enforce cadence, and deliver early wins.
Post-100 Days: Sequence commercial growth only after the platform is stable.

Cost-cutting creates headlines. Discipline builds platforms that last.

References

Fortune (2024). “We analyzed 40,000 M&A deals over 40 years. Here’s why 70–75% fail.” Baruch Lev & Feng Gu.
PwC (2023). M&A Integration Survey.
Bain & Company (2022/2023). M&A Insights.
McKinsey & Company (2019). Eight Basic Beliefs About Capturing Value in a Merger.
Independent industry benchmarks on integrated planning and supply-chain performance.

Gunina Consulting Group

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