---
title: "What Is Add-On Acquisition? Private Equity Glossary"
description: "An add-on acquisition is a smaller company bought by an existing platform company and combined into it, which adds customers, services or locations."
url: https://capstreet.multisites.ai/glossary/add-on-acquisition
publisher: Capstreet
phone: +1-713-332-2700
contact: https://capstreet.multisites.ai/contact
---

Strategy

# Add-On Acquisition

An add-on acquisition is a smaller company bought by an existing platform company and combined into it, which adds customers, services or locations.

An add-on acquisition is a purchase made by a company that a private equity firm already owns. The smaller target joins the larger business. The goal is more customers, new services, new regions or lower costs per unit.

For example, a platform company with six offices buys a competitor with two offices. The platform shares back-office work, cross-sells services and serves a bigger customer base.

If you own a smaller company, an add-on can be a good fit. You join a larger team that has money, systems and a plan. Your fit depends on culture, services and location.

Capstreet publishes "200+ Add-on Acquisitions" and "50+ Platform Acquisitions" as part of its record. It describes its Capvalue Framework® stage "Drive Business Transformation" as including a plan to "Execute buy and build strategy". Add-ons sit on top of a [platform company](https://capstreet.multisites.ai/glossary/platform-company) and form the core of [buy and build](https://capstreet.multisites.ai/glossary/buy-and-build). Learn more at [buy and build strategy](https://capstreet.multisites.ai/buy-and-build-strategy).

[Read nextBuy and Build Strategy: How a Platform Company Grows Through Add-On Acquisitions](https://capstreet.multisites.ai/buy-and-build-strategy)

## Related terms

-   [Platform Company](https://capstreet.multisites.ai/glossary/platform-company)
-   [Buy and Build](https://capstreet.multisites.ai/glossary/buy-and-build)
-   [Fragmented Industry](https://capstreet.multisites.ai/glossary/fragmented-industry)

## Ready to get started? Let’s talk.

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[Start a conversation](https://capstreet.multisites.ai/contact)

[(713) 332-2700](tel:+1-713-332-2700)[connect@capstreet.com](mailto:connect@capstreet.com)

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