Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The Management Roll-Up Trap in M&A That Cost a CEO His Company
In Episode 116 of The Acquisition Talk, Lucas and Luna examine one of M&A's most underappreciated failure modes: the management roll-up trap. They walk through the cautionary tale of a $5 million EBITDA industrial services firm whose CEO was lured into a roll-up by a financial sponsor. The CEO kept 15% equity and an earnout, but within 14 months the sponsor had replaced him, triggered the earnout clawback, and used the equity structure to force a dilutive recap. The hosts break down the specific contractual language that allowed this — the change of control definition in the management…
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