Free Whitepaper

Buy and Build in IT Services

Why most roll-ups fail, and what it takes to turn ten companies into one. An operator's playbook for IT services Buy and Build, set against two decades of M&A research.

🇬🇧 Whitepaper in English | 20 pages | PDF
Jörn Petereit
Jörn Petereit
Managing Partner, IT Capital Partners
Buy and Build in IT Services Whitepaper
20 pages · PDF · Free download
~40%
Top-15 share of a fragmented market
~190k
DACH SMEs facing succession by 2027
~65%
Programmatic acquirers beat peers
4 stages
The integration engine, in order

From a pile of acquisitions to one company.

An operator's view of the work that starts after the deal closes, set against two decades of M&A research from McKinsey, Bain, and BCG.

01
⚠️

Why Most Roll-Ups Fail

Four failure modes behind most roll-ups, and why each is an operating failure, not a deal failure. Deals rarely die at signing. They die in the months after it.

02
📉

The End of Easy Returns

The financial tailwind is gone and operations replaced it. The valuation gap, four straight years of DACH multiple compression, and why this market is uniquely ripe right now.

03
📊

Where the Returns Actually Come From

What a decade of software-deal returns really shows: growth does most of the work, multiple expansion is fading, and margin is the hardest lever and the one that separates the top quartile.

04
🔄

Programmatic Beats Episodic

Twenty years of evidence that a steady, repeatable acquisition programme beats occasional big deals, at higher returns and lower risk. The winning model is an engine, not a bold deal.

05
⚙️

The First 100 Days: Integration Is the Product

The Integration Engine: four stages applied in a deliberate order, Commercial first and Brand last, with a flywheel that makes each deal faster than the one before it.

06
🛠️

The Four Levers, and the Operational Upside

What moves a founder-led shop to re-rating-ready: recurring revenue, customer concentration, owner independence, and standardised processes, plus when each lever lands over five years.

Platform or Add-On? A Decision Aid

A practical decision aid: which role you actually play, what a serious buyer looks for, and the one question every founder should ask, are they buying you to integrate you, or to park you?

07

The Integration Engine

A platform creates value by running every company through the same machine. Four stages, applied in a deliberate order.

01
Commercial & Pricing
One way to scope, price, and contract, so the group sells as one company.
02
Delivery & Quality
One delivery standard and one definition of done, whoever is behind it.
03
Systems & Data
One backbone for finance, people, resourcing, and reporting.
04
Brand & Identity
One name, last, once the substance underneath it is real.

Commercial first, brand last. Each acquisition put through the engine should make the next one faster, the flywheel that shifts returns from multiple expansion toward growth and margin.

Written for two readers.

This guide is for the founder weighing whether, and how, to join a platform, and for the investor judging whether a roll-up is becoming a champion or simply a bag of small companies. One idea runs through every chapter: integration is the product, not the deal.

  • Founders of IT services, Systemhaus, and MSP businesses weighing a platform
  • Owners facing succession with no clear successor in place
  • PE investors and family offices running or backing a roll-up
  • Corporate development teams and M&A advisors in IT services
  • Management teams preparing a company to scale or sell

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Ready to build one company, not a holding company?

Get the operator's playbook for turning a pile of acquisitions into a single, re-rating company, set against two decades of M&A research from McKinsey, Bain, and BCG.

The Integration Engine framework
Four operating value levers
Platform-or-add-on decision aid
20 years of M&A evidence
🇬🇧 Whitepaper is written in English.

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Looking for more? This guide has a companion paper, The AI-Native IT Services Company.

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Jörn Petereit

Jörn Petereit

Managing Partner, IT Capital Partners

Previously COO of Cloudflight, scaling it from 280 to 1,000 people across four countries to a €400m exit to Partners Group. Former Bitkom board member. Now building tecRacer as IT Capital's first platform investment and backing the next generation of IT services companies.

Learn more about Jörn