The buy-and-build strategy has become essential for investors looking to scale efficiently and strategically. Singulier recently explored the best practices and lessons learned from successful buy-and-build journeys, highlighting insights especially valuable to private equity executives and companies navigating complex growth landscapes. 

This important topic was explored in our recent breakfast with Arche MC2, a leader in medico-social and personal services software who has experienced significant growth over the past five years through its buy-and-build strategy. Expanding its workforce from 90 to 550 employees in less than five years, the company’s journey, backed by Activa Capital, has acquired firms like Medisys and Cityzen. These acquisitions brought complementary technologies that enabled Arche MC2 to develop a suite of integrated applications that streamline processes and enhance collaboration across teams, highlighting the value of strategic acquisitions. 

Key Success Factors in Buy-and-Build 

There are several critical success factors in buy-and-build that provide practical insights for companies looking to achieve similar results:

1. Anticipating Technical Debt

One important insight is the necessity of anticipating the need to rebuild solutions due to technical debt. As companies scale, a solid technological foundation is essential to support future growth.

2. Building In-House Tech and Product Expertise

Combining experienced tech and product professionals with experts in emerging technologies is essential. By merging diverse skill sets, companies can leverage a broader range of expertise to drive both innovation and competitiveness

3. Defining a Clear Integration Roadmap

A well-defined roadmap for integrating acquisitions—aligning technical stacks and harmonising product roadmaps—is crucial for long-term value creation. By carefully considering how new entities fit within the existing structure, companies can avoid the pitfalls of misalignment and ensure that all parts of the business work harmoniously towards shared goals. This strategic planning ensures each acquisition supports the organization’s broader vision. 

Innovation as a Driving Force 

A fast-changing marketplace makes innovation essential rather than optional. Companies need to foster an environment that supports creative thinking and experimentation. By prioritising research and development and nurturing a culture that embraces change, organisations can set themselves up for sustainable success. 

Navigating the Buy-and-Build Landscape 

For executives looking to harness the buy-and-build model, the practices outlined here provide practical strategies for overcoming common challenges and driving strategic growth. By implementing these insights, companies can effectively navigate the complexities of expansion and enhance their ability to create value through thoughtful acquisitions.

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REMI PESSEGUIER
CEO, Co Founder & Partner at Singulier
remi.pesseguier@singulier.co