The Buy and Build strategy is a proven approach that enables companies to scale efficiently by acquiring and integrating smaller, complementary businesses. This strategy is widely employed by private equity firms, growth-focused companies, and investors looking to create synergies and enhance enterprise value.
What is the Buy and Build Strategy?
At its core, the Buy and Build strategy involves:
- Platform Acquisition: Acquiring a foundational business that provides a solid operational base.
- Add-On Acquisitions: Integrating smaller companies that complement the platform, offering benefits like expanded market reach, enhanced capabilities, or economies of scale.
This method contrasts with organic growth by leveraging existing market players to accelerate expansion and value creation.
Why Choose a Buy and Build Approach?
The strategy offers several advantages:
- Economies of Scale: Combining resources reduces operational costs.
- Market Consolidation: Strengthening market position by acquiring competitors.
- Revenue Synergies: Expanding product or service offerings to drive cross-selling opportunities.
- Accelerated Growth: Achieving faster expansion compared to organic methods.
Key Considerations for Success
To implement this strategy effectively, companies must:
- Identify the Right Business: Look for businesses with scalable operations, strong management, and a competitive edge.
- Conduct Thorough Due Diligence: Evaluate the financial, operational, and cultural compatibility of potential acquisitions.
- Focus on Integration: Plan and execute seamless integration to realize synergies.
- Secure Adequate Financing: Ensure sufficient capital to support acquisitions and integration costs.
How Commercial Financing Supports Buy and Build Strategies
For companies pursuing a Buy and Build strategy, access to reliable capital is crucial. This is where creative business loan solutions come into play:
- Acquisition Financing: Tailored loans or credit facilities for acquiring target companies.
- Working Capital Solutions: Ensuring smooth operations during and after the integration process.
- Structured Financing: Customized solutions that align with the company’s growth goals and cash flow dynamics.
At Ivanhoe Capital, we specialize in helping businesses execute their Buy and Build strategies by providing critical financing solutions. Our commercial financing solutions empower companies to focus on their growth objectives while we handle the complexities of funding.
Real-World Funding Scenarios

Dave had bought a courier service very recently and saw another one for sale that he could easily integrate into his original business. It was perfect for him.
We figured that if he was handling his current business successfully, adding another $150,000 in income after debt service would be a win-win. Learn More
Ram started an IT company and then bought another IT company about a year later for cash. Both of these businesses were doing ok, but not exactly killing it when it came to cashflow. He then saw another IT company for sale within this same year for $1.55M.
He really wanted to acquire them because he thought that would put him over the hump when it came to his global cash flow. Learn More


Corey had just recently bought 5 Battery Plus stores financed by a competitor bank who he also took a plumbing deal to.
They didn’t want to do the plumbing acquisition as it was too soon for them considering the other acquisition he had just made. That’s why he came to us. Learn More
The Buy and Build strategy is a dynamic pathway for companies seeking accelerated growth and value creation. With the right strategy, careful planning, and access to strategic financing, businesses can unlock significant opportunities for long-term success.