Top 6 Attributes to the Perfect Add-On

March 21-23, PEHUB’s BuyOuts East Conference in Boston,

@PEHUB by @StepheneLewis, Stephen Lewis, Managing Director of Headwaters MB, an investment bank focused on lower middle market M&A, summarized what he thought was the answer to the panel’s topic, “Finding The Perfect Add-On,” or what a perfect tuck-in or “platform bolt-on” might look like:

• Instantly accretive
• 2x projected synergies in ½ projected time
• New company management perfect fit & happy to be acquired
• Combined company has sufficient scale and market presence to have PE & strategic buyers willing to pay a very high multiple
• No distribution or customer overlap (double market)
• No office/plant closures
• Acquired company’s corp jet is paid for

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