15 Feb Private Equity: The Consolidation Play and Due Diligence – John Poerink, Linley Capital
A consolidation play looks like an easy winner in the private equity world. Roll up a number of companies in the same industry and you’ve got scale and pricing power, among other good things. There’s just one problem — such plays are really hard to pull off. Due diligence is the key, the more thorough the better. But even then, surprises can lurk and assumptions can prove wrong.