Buy-and-build
Acquiring a platform and adding businesses to build a combined group. Returns may come from operating improvements, strategic fit, growth and changes in valuation multiples, subject to execution and financing risks.
Buy-and-build at Hanil Widget Works
Hanil Widget Works is the platform, bought at 8.0 times a diligence-adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of 4.98m, an enterprise value of 39.84m.
Separately, in a hypothetical, an add-on is bought at 4.0x EBITDA and valued within the combined group at 8.0x on the same EBITDA and business scope. That implies a 4.0x-EBITDA enterprise-value uplift before fees, integration costs and financing effects. It is not a guaranteed exit multiple or realized equity return.
Scroll horizontally to read all columns.
| Measure | Assumed EV / EBITDA |
|---|---|
| Acquisition | 4.0x |
| Combined-group exit valuation | 8.0x |
| Gross multiple uplift before costs and financing | 4.0x |
Terms Related to Buy-and-build
Bolt-on acquisition · Multiple arbitrage · Platform company · Roll-up · Programmatic M&A · All of the glossary