10 key success factors in Buy & Build

Lessons from top investors, M&A bankers, and C-level leaders

Buy & Build strategies have become a dominant growth model in private equity, offering substantial value creation opportunities when executed effectively. A well-executed Buy & Build approach can lead to significant long-term growth, especially in fragmented industries with strong consolidation potential. However, achieving success requires a clear strategy, disciplined execution, and the ability to adapt to emerging trends. But what are the key factors that drive a successful Buy & Build strategy? 

1. Invest in non-cyclical & growing markets 

A successful Buy & Build strategy starts with selecting the right market. Sectors with secular growth, low cyclicality, and high recurring revenue potential provide a stable foundation for long-term value creation.

2. Be the acquirer of choice 

A well-defined business vision is essential to positioning your company as the preferred consolidator. What makes you the best choice for potential targets? A clear North Star strategy helps align all stakeholders.

3. Target fragmented markets 

Industries with a large number of smaller players present the best opportunities for consolidation, cost synergies, and competitive advantages. Successful platforms focus on integrating acquisitions rather than maintaining separate brands.

4. Build a strong leadership team 

A dedicated M&A function, an experienced Chief Commercial Officer, and a strong operational team are critical for executing acquisitions and ensuring smooth integrations. 

5. Bigger isn’t always better – sustainable value creation matters 

Size alone does not guarantee success. Investors are shifting focus from rapid roll-ups to long-term value creation, operational synergies, and integration excellence. Scrutiny on post-acquisition execution is rising. 

6. Align interests between investors & management 

Ensuring that investors and leadership teams share the same objectives is crucial. Proper incentive structures drive accountability and long-term success. 

7. Reputation & honesty matter 

Trust plays a key role in acquisitions. Owners speak to owners, and maintaining a reputation for integrity ensures continued deal flow. Keeping promises post-acquisition builds credibility. 

8. Implement a clear 90-day playbook 

Successful acquirers follow structured integration plans. It is not uncommon to evolve from a simple 25-step plan to over 100 actionable integration steps to ensure smooth transitions. 

9. Communication, consistency & culture drive success 

Transparent communication with acquired teams, consistent leadership messaging, and a strong cultural alignment are critical for integration and long-term retention. 

10. The market talks – your track record defines future opportunities 

Companies with a disciplined acquisition strategy and strong integration reputation attract better deal opportunities. Buyers who execute well continue to see increasing M&A momentum.

Additional Buy & Build insights 

Organic & inorganic growth ratios 

The ratio of organic versus inorganic growth remains a crucial aspect of Buy & Build strategies, particularly toward exit. Most mid-market or large M&A investments tend to have some degree of Buy & Build, with a typical organic and inorganic growth mix ranging from 5% organic growth and 10% inorganic growth to 10% organic growth and 20% inorganic growth. Operating in non-cyclical markets is vital to sustaining these ratios over time, particularly when aiming to achieve a consistent multiple on exit. This balance is key to ensuring steady growth while capitalizing on strategic acquisitions.

The role of responsibility & accountability

In successful Buy & Build strategies, clear roles and accountability structures are essential. Country General Managers (GMs) and leadership teams must not only understand their responsibility to deliver the business but also feel accountable to the broader objectives of the company. These individuals should have both equity and a defined role in the M&A process. A well-prescribed 90-day playbook is crucial, where the deal team handles the initial stages of acquisition, after which responsibility shifts to subject matter experts for integration. The key to success lies in holding team members accountable for their specific responsibilities while ensuring they have the autonomy and incentive structures to drive integration and performance post-acquisition.

Outlook on the next big Buy & Build sectors

Several sectors are emerging as strong candidates for the next wave of Buy & Build strategies. These include:

• Professional services: Accounting and legal firms are experiencing accelerated consolidation. Particularly in the middle market, these industries are increasingly opening up to third-party capital and technology adoption to drive efficiencies and competitive advantage. The growing demand for technology integration and AI in professional services is likely to spur significant consolidation opportunities. 

• Healthcare: Vet and dental practices continue to present strong potential for Buy & Build strategies. Veterinary practices, in particular, are seeing tremendous consolidation, driven by procurement benefits, cultural alignment, and long-term operational efficiencies. 

• Tech-enabled industries: Sectors leveraging digital capabilities, such as waste management and pest control, are becoming prime targets for M&A activity. With technology being at the forefront of transformation, these industries are expected to experience significant growth through consolidation in the coming years. 

Powering Buy & Build strategies with data-driven integration & growth

These insights are backed by real-world case studies from Culligan / Waterlogic (+100 acquisitions) and Kids Planet (67 acquisitions, with 150 sites acquired in 3 years). OMMAX supports these companies in strategy and digital value creation, focusing on tech, data, and AI.

At OMMAX, we have supported over 100 Buy & Build strategies, developing integration playbooks focused on commercial excellence, best-in-class data architectures, and scalable data platforms to drive sustainable business growth. Learn more about our Transaction Advisory Services or connect directly with an expert using the form below.