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Buy-and-build strategies in private equity: the impact of diversifying acquisitions on platform performance

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Bibliographic Details
Summary:Extending the literature on buy-and-build (B&B) strategies in the field of private equity (PE), this study examines the impact of product- and industry-diversifying acquisitions and cross-border transactions (CBT) on the platform’s operational improvement. The sample consists of 165 platform companies from Western Europe and their 621 add-on acquisitions between 1997 and 2020. The results of this study indicate that the integration of industry-diversifying add-on acquisitions into the B&B strategy provides additional operational value for the platform compared to exclusively horizontal add-on acquisitions.
Main Authors:Bradel, Thomas Nikolaus
Subject:Private equity Buy-and-build:M&A Diversification Cross-border transactions
Year:2020
Country:Portugal
Document type:master thesis
Access type:open access
Associated institution:Universidade Nova de Lisboa
Language:English
Origin:Repositório Institucional da UNL
Description
Summary:Extending the literature on buy-and-build (B&B) strategies in the field of private equity (PE), this study examines the impact of product- and industry-diversifying acquisitions and cross-border transactions (CBT) on the platform’s operational improvement. The sample consists of 165 platform companies from Western Europe and their 621 add-on acquisitions between 1997 and 2020. The results of this study indicate that the integration of industry-diversifying add-on acquisitions into the B&B strategy provides additional operational value for the platform compared to exclusively horizontal add-on acquisitions.