Walk a Platform Add-On Thesis
Apply Five Forces thinking to a platform/add-on private-equity thesis.
decision-trail comparison Deal screen The market has 120 local providers, no player above 6% share, and owners are aging. The team wants to call it a buy-and-build platform. Fragmentation is only attractive if consolidation changes bargaining power, service quality, cost structure, or exit scarcity. Five Forces in PE Industry structure -> platform edge -> add-on economics Use industry forces to test the market, then test whether this platform can convert that structure into cash-flow improvement. Shortcut Fragmented market = roll-up The thesis becomes falsifiable instead of fashionable. Buy-and-build is a strategy only when the buyer has a repeatable way to…
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