By Toni Stork and Dr. Stefan Sambol
Buy & Build strategies have become a dominant force in private equity, offering a compelling way to drive value creation through strategic acquisitions. What separates top-performing Buy & Build strategies from those that fail to deliver returns? How are shifting investor expectations, market conditions, and operational demands reshaping the way firms approach acquisitions and integration?
The evolution of Buy & Build: from roll-ups to operational excellence
In the past, Buy & Build strategies often focused on rapid roll-ups – acquiring numerous businesses quickly to gain market share and achieve financial engineering advantages. However, today’s investors place greater emphasis on deep operational integration. The shift towards sustainable value creation means that firms must go beyond mere acquisitions and focus on seamless integration of technology and processes, standardization of operations, strong cultural alignment across acquired entities, and long-term growth through synergies and scale advantages.
In our collaboration with Culligan Waterlogic, a leading provider of water dispensers, we witnessed firsthand how operational excellence and seamless integration are critical in managing over 100 acquisitions, particularly in unifying systems and processes across multiple entities. Likewise, our work with Kids Planet, a childcare provider, has supported the successful addition of 150 sites through 67 acquisitions in three years, focusing on brand unification and service excellence to ensure sustainable growth.
Why market selection and business model matter
Successful Buy & Build strategies thrive in specific market conditions. The best-performing platforms typically operate in fragmented industries with recurring revenue models. Ideal target markets are characterized by non-cyclical, secular growth, which ensures sustained demand, and market fragmentation, which provides opportunities for consolidation and efficiency gains. Additionally, recurring revenue models enhance predictability and cash flow stability, while scalability advantages allow firms to leverage procurement, operational efficiencies, and brand strength to drive value creation.
However, simply acquiring businesses in a fragmented industry is not enough. Investors are increasingly scrutinizing whether a platform is more than just a collection of businesses wrapped in an investment narrative. True value lies in operational cohesion, shared best practices, and robust leadership capable of managing dispersed organizations effectively. The best Buy & Build platforms foster integration by aligning corporate culture, streamlining data and reporting, and ensuring leadership teams have the expertise to oversee complex, multi-entity structures. These elements transform a series of acquisitions into a truly scalable enterprise with enduring value.
Scrutiny on post-merger execution
As Buy & Build strategies become more widespread, investors are taking a closer look at execution risks. Valuation discipline is critical, as acquisition multiples are normalizing from previous highs, making it essential to extract real operational value rather than relying on multiple arbitrage. Investors also expect platforms to drive organic growth beyond M&A, ensuring sustained performance. Additionally, sustainability and ESG factors are increasingly important, particularly in consumer-facing industries, where firms must consider reputational and regulatory implications. In this context, it is not uncommon to evolve from a simple 25-step plan to over 100 actionable integration steps to ensure smooth transitions.
The importance of a 90-day playbook
A well-structured 90-day playbook is essential for ensuring a seamless integration process. This playbook acts as a detailed, step-by-step guide that outlines the key activities and responsibilities for the first three months following an acquisition. The initial 90 days are critical, as they set the foundation for long-term integration success. From day one, having a clear, prescribed plan ensures that critical tasks – such as aligning technology systems, merging digital assets, and harmonizing customer touchpoints – are executed without disruption.
What often happens, for example, is that many URLs of various websites need to be changed or redirected. Without a structured playbook, the risk of operational missteps, such as missing critical SEO aspects, can cause a drop in search engine rankings and drastically diminish online visibility. The playbook not only focuses on digital assets but also on integrating key aspects like customer review platforms and social media accounts to present a unified brand to the market. This careful coordination prevents confusion among customers and ensures that the post-merger transition appears seamless.
The 90-day plan includes critical milestones, with clear accountability for each integration step. Teams are responsible for executing specific tasks within defined timeframes, ensuring that the integration process runs like a well-oiled machine. Moreover, this playbook is not just about operational alignment; it creates a sense of urgency, ensuring that by day 90, the platform is on track for sustainable growth.
Responsibility, accountability, and ownership
In the framework of this playbook, clarity around responsibility and accountability at every level of the organization is crucial. One key element is ensuring that leadership at all levels understands their role and ownership in the process. For example, General Managers (GMs) are ultimately accountable for the performance in their respective geographies. Each GM is responsible for running operations effectively, ensuring that targets are met, and the integration process is executed according to the plan. To ensure alignment, GMs and other leaders within the organization are not only given salary and bonuses but also equity, ensuring a shared interest in the long-term success of the platform. This equity model fosters a sense of ownership, motivating individuals to actively contribute to the growth and success of the business.
Reputation, trust, and communication
Acquirers that develop a strong reputation as a preferred buyer gain a competitive edge. Sellers are more likely to engage with firms known for fair deal-making and effective integration. It’s crucial to be transparent with sellers about the intentions for the business and its people. In many cases, it’s not just about the money – it’s about how the acquirer will treat the employees and the business being sold. This honesty can sometimes result in paying a lower multiple, but it ensures trust and preserves reputation. Sellers are keenly aware of the potential impact on their teams and will often value transparent and respectful treatment over financial considerations. Transparent communication with all stakeholders, employees, customers, and suppliers, is essential throughout the acquisition process. And consistent post-merger branding helps maintain customer loyalty, while cultural alignment and leadership stability ensure business continuity.
About the Authors
Toni Stork is CEO and founding partner at OMMAX, leading the company on its mission to build digital leaders. Toni advises numerous international corporations and medium-sized companies on digital transformation, having led over 500 digital projects in digital strategies, digital operational excellence, data science, and transaction advisory services throughout his 15-year career. With OMMAX, he has supported over 100 Buy & Build strategies, developing integration playbooks focused on commercial excellence, best-in-class data architectures, and scalable data platforms to drive sustainable business growth.
Dr. Stefan Sambol is founding partner at OMMAX and advises mid- and large-cap private equity funds and large family offices on transactions (commercial, digital, tech, and data), strategy, and ongoing value creation for their portfolio firms, covering different industries. With 15 years of expertise in accelerating the growth of companies, Stefan co-leads the transaction advisory team (+60 people) at OMMAX, which covers deals across consumer & retail, healthcare, B2B service, and tech.
