The Acquisition Machine
Buy-and-build, and the discipline of serial acquisition without destroying what was acquired
The thesis
Serial consolidation is an operational capability, not an investment thesis. What separates those who succeed from those who do not is the integration process, not the ability to identify targets
What the study establishes
1
The average acquisition multiple rises as the platform grows, and multiple arbitrage runs out
2
Poorly executed integration destroys more value than the premium paid creates
3
The debt accumulated by the platform limits the pace before the thesis runs out
Contents
- The logic of buy-and-build
- Multiple arbitrage
- The origination funnel
- Integration
- Leverage
- The cases
- When to stop
- The mandate