Our List of 100 Eminent Serial Acquirers

1 minutes reading time

Published 12 Nov 2024

Author: Philip Svensson

Reviewed by: Peter Westberg

Serial acquirers have historically proven to be fascinating from a strategic business perspective. These acquirers exist in many shapes and forms and follow different strategies. The most common approach is to acquire private companies, integrate them into their portfolio, and reallocate resources to maximize value. In this article, we explore the value-creation objectives of these companies and present a list of 100 of the most eminent serial acquirers worldwide.

Key Insights

The typical target: Serial acquirers generally target small, niche, and family-owned businesses.
Autonomy maintained: By operating under a decentralized organizational structure serial acquirers usually attempt to maintain the entrepreneurial spirit of the acquired companies.
Synergy creation: An additional aspect of value creation in serial acquirers is often achieved through synergies across the acquired companies by operational guidance and integration into the parent company’s network.

Why Serial Acquirers Acquire?

The definition of a serial acquirer is a company that integrates private market acquisitions as a core component of its strategy (to drive long-term growth and increase shareholder value). These companies typically target smaller, niche businesses that often are family-owned. The targeted company might have solid financials and strong organic growth but may lack sufficient cash flow to pursue long-term strategies to reach its long-term objectives.

To maximize the potential of the acquired company, serial acquirers generally operate under a decentralized organizational structure. This allows acquired companies to maintain customer relationships and manage operations independently. The autonomy preserves the entrepreneurial spirit of these businesses while leveraging the financial strength of the parent company.

While capital may be the primary value driver in enhancing long-term value in an acquisition, opportunities for synergy creation also exist within the serial acquirer's portfolio companies. Mainly if the acquirer is a specialist rather than a generalist. The extensive expertise of these acquirers can help streamline operations, guiding efficiency and performance. Additionally, integrating parts of the acquired company into larger networks across the portfolio may enhance collaboration and resource sharing.

After being acquired, the cash flows from the acquired companies are pooled together and reinvested into further acquisitions. This creates a cycle of compounding growth, with the usual ultimate goal of generating attractive returns for shareholders. The value creation the serial acquirer hopes to achieve can be described as 1+1+1+1=5.

Further reading: The Three Cornerstones of Serial Acquirer Success

Our List of 100 Serial Acquirers

While a serial acquirer’s focus may vary widely depending on their target preferences, the core motives remain the same: driving long-term growth and enhancing shareholder value. Across the globe, numerous serial acquirers have mastered this approach, achieving impressive success. Some may not be immediately recognized as serial acquirers – as acquisitions are just one part of their broader strategy – while others are clearly defined by a focused strategy of serial acquisitions.