Value Creation | Pillar 04

Buy-and-Build Strategy

Strategic add-on acquisitions to consolidate fragmented niches, diversify revenue streams, and create a company of meaningful scale.

Strategic Objective

Scale that commands a premium at exit

The buy-and-build model is a proven methodology for maximising value creation in the medium term. By combining a strong platform acquisition with carefully selected add-ons, CS Holding creates a business that is larger, more diversified, and more attractive to both strategic and financial buyers.

This is not a mandate to acquire for the sake of growth. The platform must first be stabilised and professionalized before any add-on activity is considered. Scale without operational foundation destroys value, not creates it.

The sequence matters. Stabilise the platform. Implement the VCP. Build operational infrastructure. Then, and only then, evaluate add-on acquisitions that extend the reach, capabilities, or customer base of the core business.

Lever 1

Niche Consolidation

Identifying and consolidating high-potential, fragmented niches within the target sectors.

Strategic Logic

  • Fragmented segments with leadership upside Both Industrial Automation and DBSP contain highly fragmented niches where a consolidating operator can quickly achieve market leadership and pricing power.
  • Geographic consolidation Targets with complementary regional presence or customer networks, extending reach without duplicating overhead.
  • Competitor or complementary-player acquisitions Selective acquisition of direct competitors or adjacent players that expand the product or service portfolio.
Lever 2

Capability and Technology Add-Ons

Acquiring specific capabilities, technologies, or teams that accelerate the platform's transformation.

Strategic Logic

  • Technology acquisitions Small software or technology providers that can be integrated into the platform's offering, accelerating digitalisation and adding recurring revenue.
  • Talent and IP acquisitions Acqui-hire opportunities in specific technical disciplines. particularly relevant in the DBSP sector where talent is scarce.
  • After-sales and service businesses Acquiring service and maintenance providers to add recurring revenue and extend the product lifecycle economics.
Lever 3

Multiple Expansion at Exit

Creating a company that commands a higher valuation multiple by the time of the liquidity event.

Strategic Logic

  • Size premium Larger businesses command higher EBITDA multiples. A business at €8M EBITDA is valued differently than one at €2M, even if the underlying quality is the same.
  • Revenue diversification Multiple products, markets, or customer segments reduce concentration risk, a key driver of valuation discount removal.
  • Strategic buyer attractiveness A combined, professionally managed business is significantly more attractive to industrial strategic buyers and PE funds, the primary exit targets.
Case Evidence

M&A execution expertise

CS Holding has executed acquisitions across multiple sectors, deal sizes, and geographies.

Two large acquisitions in Industrial Automation

As Head of M&A, acquired R.A. Jones Packaging Machineries ($350M) in the USA and a leading industrial automation business in Sweden. both within the automated machinery sector.

Four SaaS acquisitions in DBSP

Acquired four small-size SaaS software players in the Digital Business Solution Providers space. executing deal sourcing, due diligence, and post-acquisition integration.

Tens of acquisitions due diligenced

Over four years as Head of M&A, scouted, due-diligenced, and integrated or declined tens of acquisition candidates. building a systematic acquisition process.

Expected Impact

What buy-and-build delivers

At the Platform Level

Building a scalable business

  • Larger revenue and EBITDA base commanding higher multiples
  • Reduced customer and revenue concentration risk
  • Broader geographic and market footprint
  • Enhanced management team and operational infrastructure
At the Exit Level

A more attractive exit

  • Attractive to strategic buyers seeking market consolidation
  • Attractive to financial buyers seeking a proven platform
  • Higher EBITDA multiple from scale, quality, and diversification
Insights

Related Articles

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M&A

Why micro-size is no longer a competitive advantage

In many Italian sectors, small scale amplifies fragility. on pricing, talent attraction, and operational resilience. The case for consolidation.

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Strategy

Stabilise first, then build: the platform sequencing question

Why buy-and-build requires operational maturity before the first add-on. and how to know when the platform is truly ready.

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Exit

What financial and strategic buyers look for at exit

The profile of a business that commands full valuation. and how to build toward it deliberately over a 5-year ownership period.