---
title: "What Is Buy and Build? Private Equity Glossary | Capstreet"
description: "Buy and build is a strategy where an investor buys a platform company and then adds smaller companies to it, creating one larger and stronger business."
url: https://capstreet.multisites.ai/glossary/buy-and-build
publisher: Capstreet
phone: +1-713-332-2700
contact: https://capstreet.multisites.ai/contact
---

Strategy

# Buy and Build

Buy and build is a strategy where an investor buys a platform company and then adds smaller companies to it, creating one larger and stronger business.

Buy and build means growing through a series of purchases. An investor buys a [platform company](https://capstreet.multisites.ai/glossary/platform-company) first. It then adds smaller [add-on acquisitions](https://capstreet.multisites.ai/glossary/add-on-acquisition) over time.

For example, a firm buys a services company with $5 million of EBITDA. Over time it adds four smaller firms with $1 million each. The combined company is bigger, serves more customers and can spread costs over a wider base.

This strategy works best in a [fragmented industry](https://capstreet.multisites.ai/glossary/fragmented-industry), where many small firms exist and none dominates. For owners, it opens two doors. You can sell your company as a platform or join one as an add-on.

Capstreet's Capvalue Framework® includes the step "Execute buy and build strategy". The firm also reports "50+ Platform Acquisitions" and "200+ Add-on Acquisitions". Read the full pillar 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)
-   [Add-On Acquisition](https://capstreet.multisites.ai/glossary/add-on-acquisition)
-   [Fragmented Industry](https://capstreet.multisites.ai/glossary/fragmented-industry)

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