HHL Public Lectures | Finance: The Role of Buy & Build Strategies in PE Value Creation

„Buy and Build“, i.e. the acquisition of a platform company followed by a series of smaller add on acquisitions has become one of the most important strategies for PE value creation. The different strategies range from plain “rollup” acquisitions of similar companies in the same region to the creation of more complex units by combining companies in different regions and/ or in adjacent end-markets. Empirical studies show that buy and build deals outperform “normal” buyouts. However these strategies are often difficult to implement and require special skills and resources. In this session we will discuss challenges, rewards and success factors of buy&build strategies.

This session is part of a broader lecture series surrounding the topic of private equity (PE).

Together with his guest Christopher Brackmann (Bridgepoint), Prof. Dr. Bernhard Schwetzler (HHL, Chair of Financial Management) discusses success factors of buy&build strategies in private equity led buyouts. Christopher is a partner at Bridgepoint´s Frankfurt office and leading the firm´s buyout activities in the DACH region. Holding a masters degree in management from HHL, he has collected extensive experience in buyouts while working for the levered finance team of JP Morgan in London before joining Bridgepoint in 2008.

The following topics will be highlighted and exploratively analyzed in the session:

• Do buy&build deals outperform?
• Challenges when implementing buy&build strategies
• The role of “multiple arbitrage in buy&build value creation
• Financing addon transactions in buy&build strategies

The talk will be held in English