The Art of the Add-On (Last of a Series)

We’ve received a number of positive responses about our special series on add-ons. One partner at a NY-based private equity firm particularly liked our focus on why the right culture matters. “The key is retaining talent,” he wrote us. “Even when it’s not apparent where they’ll be a fit. We had one executive who had

The Art of the Add-On (Fourth of a Series)

Last week we began a check-list sponsors tick off when sifting through acquisition candidates for their platform companies. Many items are company and sector-specific. How will product lines complement each other? Will different brands confuse customers? If so, can you benefit from synergies by maintaining separate identities? But one private equity partner highlighted the most

The Art of the Add-On (Third of a Series)

The process of identifying successful add-ons is a complex one. Each sponsor has developed over the years a different style and methodology depending on their investing approach. As we’ve noted, it’s also very sector-specific. Not every portfolio company needs to, or should, have the same acquisition strategy. One partner walked us through two scenarios. “We

The Art of the Add-On (Second of a Series)

Last week we began our series on acquisitions by platform companies of private equity sponsors (“add-ons”) by examining the various roles they play in enhancing value of the underlying businesses. This week we take a closer look at how different sponsors view and implement this strategy. For many firms, it starts with management. “For us,”

The Art of the Add-On (First of a Series)

“It’s been a relatively slow year for us,” one managing partner related to us recently. His middle market private equity firm had just completed a successful fundraise, but was finding investing opportunities scarcer than last year. “We’ve only completed four new platform buyouts.” Then he smiled. “But we have done eighty-seven add-ons.” The prevalence of