In private equity, the buy-and-build model has become a cornerstone strategy. Platforms are acquired with the expectation that bolt-on deals will accelerate growth and expand market presence. Yet not every investment follows this path.
Hidden within the PE landscape are 68,000 platforms acquisitions recorded in our Research Database since 2005 that never executed a single add-on acquisition.
PE Platforms Without Add-Ons, By Industry
The data below includes platform acquisitions made before 2025, since recent platform acquisitions have not had sufficient time to make an add-on investment yet.
|
Industry |
% Portfolio Companies Without Add-Ons |
|
Retail Trade |
85% |
|
Manufacturing |
84% |
|
Finance and Insurance |
82% |
|
Wholesale Trade |
81% |
|
Health Care and Social Assistance |
78% |
|
Information (Excludes Publishing) |
78% |
|
Professional, Scientific, and Technical Services |
75% |
|
Publishing (Excludes Software) |
75% |
|
Software |
74% |
Why Some Industries Don’t Lend to Add-Ons Acquisitions
Certain industries experience fewer add-on acquisitions, particularly those with stringent regulatory requirements or those that demand specialized expertise. This duality shows that zero-add-on platforms aren’t just anomalies, they’re an integral part of how PE firms balance risk, strategy, and growth models.
Insights by Sector
- Retail Trade (85%) – The sector leads with the highest share of standalone platforms, showing how niche-focused retailers or fragmented geographies make add-ons harder to execute.
- Manufacturing (84%) – Despite being a classic roll-up sector, many platforms remain untouched, likely due to specialized production lines.
- Finance and Insurance (82%) – Regulatory complexity continues to be a barrier, keeping many platforms as standalone bets.
- Wholesale Trade (81%) – Fragmentation is high, but systems and operational integration challenges limit add-on activity.
- Health Care and Social Assistance (78%) – Licensing and compliance remain hurdles, pushing firms to rely on organic growth.
- Information (78%) – Knowledge-driven models often grow via innovation rather than acquisitions.
- Professional, Scientific, and Technical Services (75%) – Specialized expertise makes integration complex, discouraging add-ons.
- Publishing (75%) – Limited operational synergies reduce appetite for consolidation.
- Software (74%) – High standalone share reflects the preference for organic, product-led growth over bolt-ons.
