M&A INDUSTRY UPDATE | Construction and engineering | January 2025

Driving growth and value creation through Buy & Build strategies

In fragmented markets with high profitability and growth potential, Private Equity-driven Buy & Build strategies have proven to be a powerful tool for value creation. By consolidating small and medium-sized companies into larger groups, businesses can achieve significant operational synergies and enhanced market positions, while owners gain the opportunity to substantially increase shareholder value.

A typical Buy & Build initiative begins with establishing a platform for the group, followed by a series of complementary add-on acquisitions over the next few years. Companies joining such a group usually retain their name and brand, continuing operations as before, but with support for growth and professionalization. Owners realize part of their value upfront while also gaining an attractive investment opportunity within the group, aligning incentives between investors and the owners of other participating companies.

The M&A market in 2024 and into 2025 demonstrates steady activity, with both strategic and Private Equity players actively pursuing Buy & Build strategies, maintaining a strong focus on targeted acquisitions.

In this report, we dive into the key dynamics and trends shaping the Buy & Build approach, providing active owners with insights into what this could mean for companies considering joining such a consolidation.

A well-executed Buy & Build strategy transforms fragmented markets into thriving platforms, creating long-term value and opening new doors for innovation and growth. It’s not just about consolidation – it’s about creating groups with a higher degree of professionalization, leveraging synergies, and enhancing competitiveness.“ ØYVIND HOLTEDAHL, Partner at Oaklins Norway

Read and download our report