The Buy-and-Build Paradox

Why So Many PE Roll-Ups Fail Despite the Hype

Buy-and-Build (B&B) and roll-up strategies are among the most popular playbooks in private equity. 

On paper, they look irresistible: acquire, integrate, scale — and exit at a higher multiple.

But research shows a stark truth: over two-thirds of roll-ups fail to create value, often returning less than 1.0x MOIC.

So why do so many promising strategies falter in execution?

The data tells a clear story:

 👉 The biggest drivers of success are top-line growth and multiple arbitrage.

 👉 The biggest cause of failure is operational execution — specifically poor integration, IT fragmentation, and talent misalignment.

In other words, the math works, but the machine doesn’t.

The strategy’s outperformance hinges on one thing: the ability to scale operationally as fast as you scale financially.

Without a unified IT backbone, disciplined integration playbook, and aligned leadership, even the most sophisticated buy-and-build thesis becomes a “bolt-on house of cards.”

The real alpha today isn’t found in leverage or timing.

It’s found in execution quality — the systems, people, and processes that turn serial acquisitions into a coherent enterprise.

🧩 The takeaway: Buy-and-build isn’t a financial strategy with operational risk — it’s an operational strategy with financial upside.

Full Research Report:

PE Buy-and-Build Success Drivers.pdf

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