BUY AND BUILD STRATEGY
Buy And Build: A Founder-Friendly Strategy to Scale Your Business
Buy and Build is a growth strategy where a strong platform company acquires complementary businesses to expand scale, capabilities, and value.
For founders, it offers a way to accelerate growth, reduce risk, and increase long-term equity value—without losing control overnight.
What Buy and Build Means for Founders
At its core, Buy & Build means taking a profitable, well-run business and using it as a platform to acquire smaller, complementary companies—often called “add-ons.”
For founders, this approach:
Creates scale faster than organic growth alone
Improves valuation multiples
Diversifies customers, geography, and capabilities
Builds a more durable, professionalized company
Unlike roll-up strategies that strip control away, FCL structures Buy and Build in a way that keeps founders aligned, involved, and rewarded.
Accelerated Growth
Organic growth is often slow and uneven. Strategic acquisitions allow companies to grow revenue, EBITDA, and market presence faster and more predictably.
Higher Enterprise Value
Larger, more diversified businesses typically command higher valuation multiples, especially when supported by professional reporting and leadership depth.
Risk Diversification
Multiple locations, customers, or product lines reduce dependence on any single revenue source.
Stronger Competitive Position
Buy and Build helps businesses expand geography, add capabilities, and defend market share against larger competitors.
How FCL Executes Buy And Build
Many founders understand the idea of Buy and Build—but few have executed acquisitions themselves.
That’s where FCL’s M&A expertise becomes a major advantage.
Target Identification
We help identify add-on targets that make strategic sense—not just “available” deals.
Disciplined M&A Execution
FCL leads valuation, diligence, structuring, and negotiation so founders don’t have to learn M&A the hard way.
Integration & Alignment
We focus on people, systems, and incentives to ensure acquisitions strengthen the platform rather than distract from it.
Founder-Aligned Structures
Founders typically retain meaningful equity, ensuring they benefit directly from the value created through acquisitions.
Where Buy and Build Creates the Most Value
Business Services
Regional expansion, tuck-in acquisitions, customer concentration reduction, and professionalization.
Consumer
Geographic expansion, brand scaling, and improved unit economics.
Manufacturing
Capacity expansion, product line extensions, supply chain optimization, and bolt-on acquisitions.
Why Buy And Build Works
Scenario 1
Partial Liquidity + Growth
A founder completes a majority recap, takes liquidity off the table, and continues leading the platform while executing add-on acquisitions.
Scenario 2
Preparing for a Future Exit
Buy and Build is used to scale the company over several years, positioning it for a higher-value exit later.
Scenario 3
Leadership Transition
Acquisitions are paired with operational support and a CEO-in-Residence to reduce founder dependence over time.
Frequently Asked Questions
Do I have to give up control to pursue Buy and Build?
No. Many Buy & Build strategies are executed with founders retaining significant ownership and leadership roles.
Is Buy and Build risky?
Poorly executed acquisitions can be. That’s why discipline, integration planning, and alignment matter—and why M&A experience is critical.
When does Buy and Build make sense?
Typically when a business has strong margins, a solid management team, and clear opportunities for strategic expansion.
How does Buy and Build affect my day-to-day involvement as a founder?
Day-to-day involvement depends on your goals and the structure of the partnership. Some founders remain deeply involved in operations and acquisitions, while others gradually shift toward a strategic or oversight role as the business scales and leadership depth increases.
Do add-on acquisitions need to be in the same industry?
Most successful add-on acquisitions are closely related to the platform’s core business—either geographically, operationally, or through complementary services or products. The focus is on acquisitions that strengthen the platform rather than introduce unnecessary complexity.
How are add-on acquisitions financed?
Add-on acquisitions are typically financed through a combination of cash flow, debt, and equity, depending on the size and structure of the transaction. The objective is to fund growth responsibly while preserving flexibility and alignment for the founder and the business.
Considering whether Buy & Build could make sense for your business?
We’re happy to talk through your situation—confidentially and without pressure.