In today’s deal environment, where platform investments have slowed, many private equity firms are doubling down on add-on acquisitions as a strategic growth lever. To identify the leaders in this space, we analyzed our M&A database to determine the most active private equity players executing add-on deals.
These firms exemplify the momentum behind buy-and-build strategies across sectors, from vertical SaaS to business services to healthcare IT. For example:
For a deeper look at how timing can make or break an add-on strategy, read: Timing the sweet spot for add-ons after a platform acquisition.
Over the past five years, quarterly add-on activity has shown a clear upward trend. While early 2020 saw muted deal flow due to market uncertainty, volumes rebounded strongly by late 2020 and peaked through 2021 and early 2022. Although activity dipped slightly in 2023, add-on acquisitions remain resilient.
While many portfolio companies receive only one or two add-ons, certain aggressive buy-and-build platforms push well beyond that. The maximum number of add-ons for a single portfolio is an impressive 71, a record held by Mercer Advisors (a registered investment advisor co-owned by private equity firms: GenStar Capital, Oak Hill Capital, and Atlas Partners). For portfolio companies that make at least one add-on investment, the median is two add-ons per portfolio company.
The key, however, is not just volume but strategic fit and integration discipline. While high add-on counts can signal strong execution and market dominance, they also test a firm's operational capacity, integration expertise, and leadership alignment. Done right, these multi-acquisition strategies can transform modest platforms into category leaders.
Add-on acquisitions are concentrated in industries where market fragmentation, recurring revenue, and operational synergies create compelling opportunities for private equity firms.
The following top sectors maintain high add-on activity:
As firms navigate evolving market conditions, those who deploy disciplined buy-and-build strategies are best positioned to unlock transformative growth, create category leaders, and deliver outsized returns.