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Serial acquirer
Company that grows by repeated acquisitions From Wikipedia, the free encyclopedia
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A serial acquirer is a company that pursues a strategy of growth mainly through repeated mergers and acquisitions rather than relying solely on organic growth.[1] This approach is often associated with long-term "buy-and-build" or "roll-up" strategies, where numerous acquisitions are integrated into a larger operating platform.
Characteristics
Serial acquirers typically share several features:
- A decentralized operating model allowing acquired firms to retain autonomy.[2]
- Disciplined capital allocation, with acquisitions funded through reinvested cash flow.
- A focus on acquiring smaller companies in fragmented industries.
Notable examples
Several publicly traded companies are frequently cited as examples of successful serial acquirers:
Criticism and risks
While serial acquisition strategies can generate significant growth, critics highlight risks including:[3]
- Integration challenges across multiple acquired businesses
- Potential overpayment or misallocation of capital
- Reliance on favorable credit markets to finance acquisitions
See also
References
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