With consistently increasing deal multiples across markets, the opportunity to acquire bolt-on companies in pursuit of multiple-arbitrage has made buy-and-build strategies more popular than ever.
In their 2019 Global Private Equity Report, Bain confirms “Buy-and-build can offer a clear path to value at a time when deal multiples are at record levels and GPs are under heavy pressure to find strategies that don’t rely on traditional tailwinds like falling interest rates and stable GDP growth.”