Buy & build has long been recognized as a manifestation of value creation in private equity transactions. Studies have shown that buy & build concepts are successful above all when they take place in the same industry or in complementary business areas of the platform company and they are pursued on a sustained basis, i.e. several acquisitions are made. They work particularly well for smaller platforms and in fragmented industries. In any case, the key to a successful strategy is that the equity sponsor is Buy & Build experienced.

1 + 1 = 3

From the certain small-scale nature of the Group's construction follows a need for flexible structures with simultaneous scalability of the process flows.

Due Diligence

As a rule, the equity sponsor already has a certain expertise in the platform's business area. Ideally, the consultants will also have already gained experience in the relevant industry or comparable industries. Nevertheless, every transaction and every company is different. From the equity sponsor's perspective, the key is therefore to become more effective and better with each acquisition for the platform. To this end, it integrates management capacities from acquisitions already made (add-ons), which can come up with knowledge advantages from their own corporate history.