BUILD a business
If you use a Buy-and-Build strategy your intent is to build a new company from the start, but based on the purchase of one or several acquisitions. Generally Buy-and-Build strategies involve the acquisition of several companies in order achieve a fast growth in a certain market segment. This is then also referred to as a roll-up.
Main strategic transaction types
Since acquisitions are one of the most difficult strategic transactions to get right (according to a Harvard Business Review article from June 2016 typically 70-90% of acquisitions are abysmal failures), doing several ones in series and getting them right is often considered the highest mastery of management. It really entails having experienced managers that can mange such an endeavor. Since most roll-ups are done either by investor groups or larger corporations, the end game is either a divestment to a third party, or an integration into a larger organization, which entails the same integration management as a divestment.
Supporting strategic transaction types
Generally roll-ups take at least 3-5 years. Since fast value generation is at the core of such a roll-up adding extensive building of alliances as well as in- and out-licensing are all part of the game. In some cases it makes even sense to create certain spin-offs. Those can be especially useful in case of a platform technology that provide a foundation for a number of serial exits.
Globalator services offered
Globalator clients for Buy-and-Build engagements are investor groups that do not have underutilized funds and not enough internal management capacity for additional transactions. Globalator offers the full management of a roll-up including the identification of the potential acquisition candidates, completing the serial acquisitions and managing the whole process over a period of several years all the way to an exit. We also stay on board once the roll-up has been sold to ensure a smooth transition to a new owner, which increases the value of the selling entity further.
We would be happy to discuss with you the best strategy for the future of your business and determine if Globalator can play a role in that. You will find that our approach can also add value to you.
Research reagents special engagement team
Globalator has established a global engagement team specialized on the research reagents market. This team is lead by the founder of Globalator Juergen Graner and includes Michael Krebs from Vienna (Austria), Brian Conkle from San Diego (USA), as well as Francesco Melandri from Boston (USA). We are currently evaluating Buy-and-Build opportunities in Europe and the USA.