Chapter 6: Uncoupling the Private Equity-backed Buy-and-Build Strategy

Private equity (PE)-backed buy-and-build (B&B) strategies have emerged as a prominent avenue for creating value through inorganic growth. But while B&B strategies have gained popularity, the existing literature has primarily focused on specific facets, lacking a comprehensive understanding of the interplay between the “buy” and “build” components. Our systematic literature review bridges this gap by providing an integrated analysis of B&B strategies. In doing so, we follow an established framework, categorizing the B&B process into antecedents, outcomes, mediators, and moderators. The review underscores the unique characteristics of B&B strategies, amalgamating PE advantages with corporate mergers and acquisitions (M&As). By adopting a multidisciplinary perspective, we further synthesize and organize existing empirical findings. Our chapter finally serves as a robust foundation for future research, shedding light on the nuanced dynamics of B&B strategies and their impact on overall firm success.