The Popularity of Buy and Build Strategies

Buy and build strategies have emerged as the predominant investment approach in the industry, with nearly half of all deals in 2023 categorized as such. This strategy's appeal lies in its ability to consolidate fragmented markets while generating synergies to enhance profitability. However, the complexity of executing these strategies successfully cannot be overstated; doing so requires careful assessment of potential acquisitions, considering both operational alignment and financial viability. The right approach is critical, as the wrong execution can lead to significant capital impairment, highlighting the importance of thorough validation before any deal is finalized.