TO BUY & BUILD OR NOT TO BUY & BUILD?

23 May 2024

The Pro’s, the Con’s and the lessons learned

Buy-and-build and roll-up strategies are proving to be increasingly popular. The last decade the share of buy and build acquisitions, relative to the total number of M&A transactions, more than doubled.

The recent acquisition of RTL by DPG and the series of acquisition in the business software industry by Visma are clear examples of this trend. While in the financial sector and healthcare we have witnessed buy-and-build that have led to mature stages of market consolidation. Consolidating strongly fragmented markets can significantly enhance its value, thus achieving a premium value at exit thanks to multiple arbitrage.

It is no surprise that Private Equity firms keep hunting for hidden gems in markets with enough traits of growth, profitability, fragmentation and acquisition targets of the right size. The M&A trend analysis 2024 confirmed this ongoing trend.

The big question ofcourse is where to find sectors that provide an ample supply of targets and a stable environment in which to pursue them.

Private Equity Summit 2024

During the PE Summit 2024 we share examples of successful targetselection, briljant timing and effective post-merger integration. We analyse impressive returns that well-executed add-ons can generate and discuss impactful cases of buy-and-build with investors and entrepreneurs. What works and what doesn’t work?

The PE Summit programm also debates the downside of what some might call corporate cannibalism. Does international consolidation lead to a lack of competition, higher prices and a slowdown in innovation? What will the continuous cycle of consolidating markets bring us in the future? And which markets and niches are most likely to consolidate in the future?