Start with the company you already own
In a buy-and-build strategy, a platform company is the operating business used as the foundation for additional acquisitions. Not every acquiring company is described as a platform.
There is no universal revenue threshold that makes a company a platform. A specialty contractor, manufacturer or service business may have an acquisition opportunity, but size alone does not establish readiness. Financial capacity, management, target fit and the integration plan matter.
Strategic buyer or financial buyer: know which one you are
Two useful buyer categories are financial and strategic. Their motivations can overlap.
A financial buyer buys primarily for an investment return. Private equity firms are one example. Financial buyers may support management teams and fund further acquisitions rather than simply replace the owner.
A strategic buyer acquires a business for its fit with existing operations, such as customers, geography, capabilities or supply chains. Strategic buyers include owner-operated companies and larger corporations. MVA helps owners evaluate acquisitions that fit their own business.
Acquisition activity in your industry can create opportunities to buy or sell, but another company’s deal does not establish your value or readiness. Some owners pursue acquisition growth and later an exit; whether that creates additional value depends on price, execution and market conditions.
The five steps, in order
- Assess. We start with an assessment of the buyer's own company and discuss whether to scale, prepare for a sale or strengthen the business first. We review financial reporting, operations, people, systems and customers to identify readiness gaps. A company assessment does not replace target-specific due diligence.
- Get ready. Preparation time depends on the gaps identified. Priorities may include reliable financial reporting, management capacity, accounting support and documented systems. These improvements can strengthen the existing business, but their effect on value depends on the cost, results and buyer’s assessment.
- Build the buy box. The buy box is a written definition of what you will buy: vertical integration, geographic expansion, a bolt-on that adds a service line, a tuck-in that folds a smaller shop into your operation. The riches are in the niches. A tight buy box keeps you from chasing deals that look exciting and fit nothing.
- Search, negotiate, close. With the buy box written, evaluate targets against your strategy and set price limits using diligence and financing assumptions. Reliable financials help lenders assess a proposal; they do not guarantee funding. SBA 7(a) financing can support eligible ownership changes, subject to creditworthiness, repayment ability and other program and lender requirements.
- Integrate. Plan integration before closing, and refine it as diligence reveals more. The approach may range from separate operations to combining the brand, systems and teams. Early execution matters, but integration, performance monitoring and value creation often continue well beyond the first ninety days.
Simple, not easy
The sequence is straightforward; individual deals can be complicated. Running an acquisition process alongside your company takes time, specialist advice and disciplined decisions. A repeatable process helps you evaluate the opportunity and its risks.
If you are weighing timing, read When should I buy another company? If you are thinking about the other side of the table, read What is my company worth to a buyer?
Sources and further reading
Reviewed October 8, 2026. The recommendations above are MVA’s advisory framework; the sources below support the financial definitions and transaction context.
