M&A Roll-Up Strategy for a Civil Engineering IT Company

We supported a civil engineering IT company that was pursuing step-change growth through M&A but had no system in place to continuously identify candidate companies. Through designing a roll-up strategy and building an in-house sourcing foundation, we established a structure that improves the speed and accuracy of investment decisions.

CHALLENGEChallenge

The company had considered business expansion through M&A as a strategic option, but lacked the foundation to put it into practice. Investment criteria, such as what standards to use in selecting acquisition targets and which areas to build up first, had not been codified. In addition, the company had no in-house system for identifying candidate companies, forcing an ad hoc response every time a deal arose. As a result, M&A had not yet become a functioning, continuous growth driver. The fundamental issue was that while the roll-up concept existed, the structure to support it did not.

APPROACHApproach

We first formulated a roll-up strategy grounded in the company's business characteristics and market environment, organizing the direction and priority of acquisitions, namely which areas and functions to bring in first. Next, to ensure the strategy did not remain merely theoretical, we built an in-house sourcing foundation capable of continuously identifying candidate companies. The aim is to shift from a structure dependent on external intermediaries to one that can keep generating a pipeline of candidate companies in-house. By advancing strategy formulation and execution-foundation building together, we designed the engagement so the strategy would not stay on paper.

IMPACTImpact

With the roll-up strategy now codified, acquisition priorities and investment criteria are beginning to function as a shared language across management. Building the in-house sourcing foundation has established a structure capable of continuously generating a pipeline of candidate companies. This has improved both the speed and accuracy of M&A investment decisions. The shift from external dependence to self-sufficiency now serves as the foundation supporting future step-change growth.

RELATED SERVICESM&A Strategy

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