Buy & Build strategies are becoming increasingly popular
Why financial investors are relying on this strategy
For financial investors, the structured, serial takeover of complementary companies, the so-called buy & build, represents an essential measure for generating value.
Especially in highly fragmented markets, this is a frequently pursued strategy. It aims to build up a group of companies with a significant market position through acquisitions. Due to its size, it has better chances of asserting itself in competition, and therefore premium valuations are regularly achieved in exits that clearly exceed the sum of the individual values.
Current market data also show that this strategy is gaining in importance: In 2018 alone, buyers in Europe spent almost EUR 11 billion on buy & build transactions. Around 700 such takeovers were carried out by companies in which financial investors were already involved. This represents an 8% increase compared to the previous year.
Read more about this exciting topic in the article we published in the M&A Review in the run-up to the MuMAC conference in Munich, which you can download below: