Anyone knows any precedent transactions of buying 2+ companies and merging?

by a searcher from London Business School

4 years ago

Hi all! We are looking into precedent transactions from previous searchers where there was a potential play for buying two or more companies that fit the investment criteria, yet individually these companies were below the EBITDA threshold (very fragmented industry), hence buying them separately and merging them was a strategic move. Does anyone knows if such a case exists in the search fund industry? We are aware of other cases were searches pursued greenfield initiatives with strong investment thesis and investors backed them, but not aware of a consolidation strategy. 

Keen to speak to anyone that can share some insight.

Many Thanks

6 likes
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5 comments

searcher from New York University - Leonard N. Stern School of Business

Ultimately you're ahead of the game as most searches way to acquire than roll up if you've got the out the gate that helps. I think what's important is having board/investors who've had that integration experience because nailing that is obviously the magic part.

4 years ago | like reply | 0 likes

searcher

Hi Felipe, we actually pursued that path in the software industry and while there have been some hiccups as a whole, it made a ton of sense to get a bit more scale. Feel free to msg me privately, happy to have a chat.

4 years ago | like reply | 0 likes

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