Recruiter's Glossary

Examples: Fund of Funds • Subordinated Debt • LBO

Buy and Build

Term from Private Equity industry explained for recruiters

Buy and Build is a common investment strategy used by private equity firms where they first buy a main company (called a platform company) and then grow it by buying other smaller related companies (called add-on acquisitions). Think of it like building with LEGO blocks - you start with one big piece and keep adding smaller pieces to make something bigger and more valuable. This approach helps create larger, more profitable companies that can compete better in their market. Many private equity jobs mention this term because it's a key way these firms grow their investments and create value.

Examples in Resumes

Led Buy and Build strategy resulting in 5 successful add-on acquisitions

Executed successful Buy and Build approach in healthcare sector, growing platform revenue by 300%

Managed due diligence for multiple add-ons as part of Buy and Build strategy

Typical job title: "Private Equity Professionals"

Also try searching for:

Private Equity Associate Investment Professional M&A Associate Deal Professional Investment Associate Portfolio Manager Acquisition Manager

Where to Find Private Equity Professionals

Professional Networks

Industry Resources

Job Boards

Example Interview Questions

Senior Level Questions

Q: Can you walk me through a Buy and Build strategy you've executed and what made it successful?

Expected Answer: Should explain their role in identifying the platform company, criteria for add-on acquisitions, integration challenges faced, and value creation achieved. Look for mentions of multiple successful acquisitions and clear growth metrics.

Q: How do you evaluate potential add-on acquisitions for a platform company?

Expected Answer: Should discuss market analysis, financial metrics, synergy potential, integration considerations, and risk assessment. Look for structured approach to evaluation and understanding of value creation.

Mid Level Questions

Q: What are the key challenges in implementing a Buy and Build strategy?

Expected Answer: Should discuss integration challenges, culture alignment, pricing considerations, and operational hurdles. Look for practical examples and problem-solving approach.

Q: How do you identify potential platform companies for a Buy and Build strategy?

Expected Answer: Should explain market analysis, company criteria (size, industry position, growth potential), and how to assess expansion opportunities. Look for systematic approach to market evaluation.

Junior Level Questions

Q: What is a Buy and Build strategy and why do PE firms use it?

Expected Answer: Should explain the basic concept of platform acquisition and add-on growth, with understanding of value creation through scale and synergies.

Q: What's the difference between a platform company and an add-on acquisition?

Expected Answer: Should explain that platform companies are larger initial investments that serve as base for growth, while add-ons are smaller companies that complement the platform.