2 Years to $40m: The Anatomy of a High-Velocity Roll-up

And with him, I act more of a typical private egg with your sponsor, right? Like we define targets. We set up the budgets that we want, but he does most of the work leading the team.

I feel that as we evolve, that will be the case for most functions, but we have to build it, right? It's building the company and then probably we'll treat it more of a traditional sponsor. But I feel that gives us the differentiator for the next one.

I think it's also worth highlighting that doing 24 or more than 24 acquisitions at this stage in a relatively short amount of time, that in itself requires operational excellence just to undertake so much M&A activity. You mentioned that you have a team of former BCG caliber people traveling around Spain knocking on doors. Could you talk more about this?

Is this something you do because it has a higher success rate? How do you go and ensure you're being tactful when you show up in person? How do you tactically do that?

And then maybe segue that into how you operate your M&A process at such a high volume, high velocity, as Will said in the introduction.

Yeah, no, that's a good point. So the consulting background of my team, it's in operation, right? It's not in M&A, not because they cannot do it, but typically they prefer to do different things.

So our M&A team, it's coming from finance and other M&A background, either private equity. You have actually some folks from other private equity firms or from M&A advisors. They have to be young because we require them to travel.

and for us they have to be good at analytics because we expect everybody to do their own lbos we have templates and everything but we have we expect them to be very good at identifying issues in the balance sheet the cash flow statement the typical models we have again best practices but they need to do it they need to prepare their briefing for their own deals and they need to be pretty…

but we have three folks that you know 25 26 years old that are just best in class and they love their job and we love what they do but they're not from consulting backgrounds the consultants are more in operations

And so they're best in class being just really affable and friendly and intelligent. So that's why they're able to not only approach these business owners on your behalf, but also add value in those dialogues and then entertain them and kind of move the conversation towards a partnership eventually, or at least learn more about each other.

Exactly. And actually, when the deal is closed, you know, they pass it to the integration team. And sometimes at the first or second week, the business owner asks, hey, where is Guille? Which is the guy that does the M&A.