John Cerasuolo, CEO of Leap Partners Creating a successful roll-up strategy requires a unique combination of industry expertise, strategic planning, and leadership. John Cerasuolo, CEO of Leap Partners, has mastered the art of acquiring and integrating businesses in the home services industry, including HVAC, plumbing, and electrical services. With 19 acquisitions in less than three years, Leap Partners is rapidly expanding across the Southeast with a people-first approach. In this episode of the M&A Science Podcast, John shares how to build a roll-up machine from scratch. He discusses selecting the right industry, pitching to investors, sourcing and executing deals, and the critical role of leadership and culture in scaling a business. John also explains how to foster strong relationships with business owners and private equity partners, along with key lessons learned from executing high-volume M&A. Things You’ll Learn: How to build a roll-up strategy from scratch Understand how to pitch to investors and raise capital without an initial deal in place Gain insights into sourcing and executing deals with a people-first approach Discover the importance of rapid integration and operational efficiency Hear how to build strong relationships with business owners and private equity partners _________________________________ This episode is  sponsored by DealRoom BI. Harness the power of real-time data to make data-driven decisions by building, visualizing, and sharing interactive M&A reports seamlessly. Visit DealRoom.net to learn more._________________________________ Episode Timestamps: [00:00:00] Introduction & The Importance of M&A Reporting Automation [00:02:00] Guest Introduction: John Cerasuolo's Background & Key Lessons from the Navy [00:07:00] The Role of Private Equity in Roll-ups [00:10:30] Building a Roll-up Machine: Step-by-Step Guide [00:13:45] Sourcing Deals & Choosing the Right Industry [00:21:20] Securing the Right Investment Partner & Negotiating Terms [00:30:30] First Deal & Launching Leap Partners [00:33:00] Building a Strong Pitch to Business Owners & Characteristics of Leadership [00:40:00] Integration Strategy & Operational Efficiency [00:45:00] Partnership with Business Owners & Culture Building Post-Close [00:48:30] Craziest Thing Seen in M&A & Final Thoughts  

Jeff Giles, Executive Vice President at Core & Main, specializes in high-volume M&A with a history at top firms like Emerson Electric. He discusses the vital connection between cultural fit and successful acquisitions, emphasizing relationship-building in deal sourcing. Jeff shares his strategic insights on market mapping and highlights the importance of technology for effective integration and transaction management. With over 60 deals under his belt, he reflects on negotiation tactics and the complexities of ensuring a smooth post-merger transition.

John Orbe, Senior Associate General Counsel – M&A at Emerson, brings his extensive expertise in large-scale transactions to the discussion. He explores the unique challenges faced in big versus small deals, outlining why legal teams are pivotal in navigating M&A complexities. Highlights include the vital role of technology and AI in enhancing deal efficiency, as well as the intricate dynamics of cross-border negotiations that require more than just legal knowledge. Orbe also emphasizes the importance of teamwork and early legal involvement for successful outcomes.

Dr. Amit Monga, Founder and CEO of SARAPOINT, shares his expertise in the ever-evolving landscape of tech mergers and acquisitions. He delves into the shift from EBITDA to revenue multiples in software valuation, emphasizing the need for strategic growth insights. Amit discusses the challenges of navigating difficult CEOs and the nuances of buy-side versus sell-side M&A. He also reveals effective strategies for pitching acquisitions and the complexities of carve-outs, highlighting the importance of cultural fit and financial structuring for successful integrations.

Amit Monga, Founder and CEO of SARAPOINT, draws on two decades of M&A experience to share valuable lessons for navigating the complexities of tech mergers and acquisitions. He discusses the critical importance of cultural integration and strategic alignment during M&A processes. The conversation also highlights balancing proactive and opportunistic strategies, handling deals outside core strategies, and maintaining control during execution. Monga emphasizes anticipating challenges and transforming uncertainty into opportunity with actionable insights.

Joe Mantone, U.S. Financial Institutions News Desk Manager at S&P Global Market Intelligence, dives into the shifting M&A landscape. He discusses rising deal volumes post-2022 downturn but notes they still lag behind 2021's highs. Regulatory challenges and high interest rates are reshaping strategies for corporate leaders. Mantone also highlights private equity trends and the potential of AI in capitalizing on sector-specific opportunities come 2025, offering actionable insights to navigate the volatility ahead.

Andrew Kelley III, VP of Corporate Development and Ventures at Five9, shares his expertise in M&A and corporate development. He emphasizes the importance of building strong relationships and conducting thorough due diligence to ensure successful deals. Kelley discusses overcoming bid-ask spread challenges and highlights the critical role of culture in integration. He also explores how emerging technologies, like AI, are reshaping the corporate development landscape, making processes more efficient and enhancing collaboration.

In this discussion, Russ Hartz, VP of Corporate Development at Ansys, and Carey Pugh, Director of Corporate Integrations at Ansys, dive into the importance of synchronizing deal and integration teams. They reveal that early integration planning can significantly enhance post-deal outcomes. Their insights include strategies for managing integration costs, navigating cultural differences, and fostering strong collaboration between teams. By sharing personal experiences, they highlight how effective communication and alignment can drive success in mergers and acquisitions.

Jason Lippert, CEO of LCI Industries, shares insights from his extensive experience in M&A integration. He discusses the pivotal role of leadership development and cultural alignment in ensuring successful mergers. Listeners learn about the correlation between culture and financial performance, the importance of involving frontline workers, and strategies for proactive culture development. Jason emphasizes the critical need for strong leadership during integration and explores how AI can enhance customer service to drive organizational growth.

Adam Coffey, Founding Partner of The Chairman Group, shares his expertise in M&A strategies aimed at sustainable growth. He emphasizes the critical importance of sourcing proprietary deals and building personal relationships for successful acquisitions. Listeners learn about crafting tailored outreach strategies and navigating financing complexities, particularly in the software industry. The conversation also dives into the essential role of integration post-acquisition and how to build a skilled M&A team to enhance overall effectiveness and capitalize on emerging trends.