Corporate law collectives

Buy and build, consolidation, platform Bolt-ons, add-ons, roll-up strategy - these are some of the terms used to describe a target company, the "platform", then adding on other similar companies (often smaller) by acquisition. Its aim is to generate value at an often faster rate than through organic growth. Investors, such as PE houses, often use this route with their investment companies until they exit.

Over the last 20 plus years I've been an active participant in the buy and build market and given the high multiples being seen for some M&A, buy and build can present an alternative strategy to building market share. We've seen roll-ups happen very successfully in the consolidation of certain sectors - veterinary, dental, physio, IT services, law firms(!), fuel stations, motor retailers etc.

An aggressive buy and build strategy will typically be fuelled by an exit for the investor and therefore a finite timetable.

Below I share my key tops to successful buy and build strategies over the next few days and where to watch for the pitfalls.

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