SCALING THE BUY-AND-BUILD STRATEGY: UNLOCKING VALUE OR UNLEASHING RISKS
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2025-07-07
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en
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Abstract
This research explores the relationship between scaling buy-and-build strategies, through
cross-border expansion and add-on acquisitions, and platform performance, while taking into
account the influence of information asymmetry. The findings suggest that the number of addon
acquisitions or the degree of cross-border expansion, considered in isolation, does not
primarily determine the performance of private equity-backed buy-and-build platforms.
Instead, it is contingent upon the effective execution of cross-border strategies in environments
marked by significant information asymmetry. In such circumstances, improved governance
and strategic signalling can lead to modest improvements in EBITDA. Therefore, the findings
provide valuable insights into the mechanisms underlying value creation in scaling buy-andbuild
strategies, which are founded on execution and information management, rather than
being solely dependent on scaling mechanisms.
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Faculteit der Managementwetenschappen