What is buy and build strategy in private equity?

A buy and build strategy is commonly used by private equity firms seeking to expand operations, generate value, and increase returns. It is accomplished through the acquisition of a platform company with already established internal capabilities that can be further built upon.

Why are private equity firms buying listed firms at a record rate?

Blame tax breaks, cheap money and investors lusting for better returns. OVER THE PAST year bankers and lawyers who arrange mergers between companies have been working overtime as private-equity firms buy up companies listed on stock exchanges at an unprecedented rate. British companies are the most popular targets.

What is buy build strategy?

A buy and build strategy is one where a company that is attempting to expand its operations in a given direction buys a well-developed company in that sector that has an established platform of management and developed expertise in the areas in which the buying company is interested.

What are build strategies?

decision-making aimed at increasing market penetration of existing products into existing markets or new markets or both.

What are examples of private equity funds?

“Private equity” is a generic term used to identify a family of alternative investing methods; it can include leveraged buyout funds, growth equity funds, venture capital funds, certain real estate investment funds, special debt funds (mezz, distressed, etc), and other types of special situations funds.

What is important to private equity firms?

At least as important, private equity firms are skilled at selling businesses, by finding buyers willing to pay a good price, for financial or strategic reasons, or by launching successful IPOs. In fact, private equity firms develop an exit strategy for each business during the acquisition process.