Recruiter's Glossary

Examples: IRR Hurdle • Catch-up Period • MBO

Platform Acquisition

Term from Private Equity industry explained for recruiters

Platform Acquisition refers to when an investment firm buys a main company that will serve as a foundation for future growth. Think of it like buying a house that you plan to add rooms to later. The main company (platform) is usually stable and successful, and the plan is to buy smaller related companies later to make it bigger and more valuable. It's different from just buying one company to run it - here, the goal is to build something bigger through multiple purchases over time. You might also hear it called a "platform investment" or "cornerstone acquisition."

Examples in Resumes

Led Platform Acquisition strategy resulting in purchase of 3 complementary businesses

Evaluated potential Platform Acquisition targets in healthcare sector

Executed $500M Platform Acquisition and subsequent add-on purchases

Managed due diligence for Platform Investment in manufacturing sector

Typical job title: "Private Equity Associates"

Also try searching for:

Investment Associate Private Equity Analyst Investment Professional Deal Professional M&A Associate Investment Banking Associate

Where to Find Private Equity Associates

Professional Networks

Industry Resources

Job Boards

Example Interview Questions

Senior Level Questions

Q: Can you walk me through how you would identify and evaluate a potential platform acquisition?

Expected Answer: The answer should cover market analysis, financial performance review, growth potential, industry dynamics, and how to assess if a company would make a good foundation for future add-on acquisitions.

Q: What are the key challenges in executing a platform acquisition strategy?

Expected Answer: Should discuss challenges like valuation, integration planning, identifying synergies, managing multiple stakeholders, and building a robust growth strategy for future add-ons.

Mid Level Questions

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

Expected Answer: Should explain that platform acquisitions are larger, initial investments that serve as a foundation, while add-ons are smaller purchases made to grow the platform company.

Q: How do you assess whether a company would make a good platform investment?

Expected Answer: Should mention evaluating market position, management team, financial stability, growth potential, and ability to integrate future acquisitions.

Junior Level Questions

Q: What is a platform acquisition strategy?

Expected Answer: Should explain the basic concept of buying a main company with plans to grow it through additional purchases, like building a house and adding rooms.

Q: What kind of research would you do to analyze a potential platform company?

Expected Answer: Should discuss basic financial analysis, market research, competitor analysis, and understanding the company's position in its industry.