Buy And Build Strategy
A key tenet of VSS's investment strategy is to focus on growth through add-on acquisitions in order to supplement organic growth.
To build long-term value, VSS selects solid platform companies with a strong management team then acquires like-kind businesses that can be integrated into the platform company.
By making several focused add-on acquisitions, a platform company is able to expand its product offerings, provide additional services to its customer base, create economies of scale and gain access to a more attractive array of financing options. By investing in companies with capable management and the ability to grow both organically and through add-on acquisitions, VSS helps create enhanced returns through the efficiencies inherent in attaining critical mass and leveraging economies of scale.
Analysis of the opportunity set of potential add-on acquisitions is an integral part of the VSS investment decision process.
VSS has successfully executed on its add-on acquisition strategy for over 20 years. VSS has made over 300 add-on acquisitions to its 66 platform companies, an average of nearly five per platform company.
