Investor Presentaiton
Strategic Multiple Acquisitions
Investor acquires all or a controlling portion of a small number of US
companies to create an affiliated group of companies, then expands all or
some of them to grow revenue and market share. Investor can use one of
the companies as the main company (called the "platform company") or
can form a holding company to oversee the multiple operating companies.
Pros
Cons
Buying multiple established
companies gives Investor a
foothold in multiple sectors.
If the companies can be
meshed together, then the
resulting operations may
greatly expand Investor's
operational capacity and
growth potential.
This model requires a strong
US management team to oversee
the acquisitions.
With each acquisition, the
potential for local operational
problems and risks increases.
It may not be easy to tie the
companies together.
Each acquisition increases
the cost of the venture.
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