Serial acquirer

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:

• Constellation Software
• Berkshire Hathaway
• Danaher Corporation
• TransDigm Group

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

• Merger
• Acquisition
• Rollup
• Private equity
• Conglomerate

References

1. Umbrex. "Serial Acquirer." Private Equity Glossary
2. Lund University. "Lessons from Acquisition-Driven Compounders." (2021)
3. PIE Lab. "The Compounding Kings: How Serial Acquirers Turn Small Investments into Big Returns." (2023).