Bolt-On Company...AKA Tuck-In or Add-On
A bolt-on acquisition refers to a company that is added by a private equity (PE) firm to one of its platform companies, usually in the same line of business, that presents a strategic value.
This is a smaller investment for a PEG and could be of any revenue or EBITDA size, as long as it presents a synergistic value to the platform company.
Why it Matters to You
For a smaller company, we would target PEGs that have an existing platform in the industry and perform research to show the potential synergies between the two companies.