Mark Osborne explains how M&A buyers distinguish platform deals from add-ons. Platforms typically have $5M+ EBITDA and strong leadership, processes, and technology. Add-ons are smaller acquisitions valued mainly for new products, geographies, or capabilities.
The major difference between the two is, is if you are going to be the platform, you know, typically there's, you know, roughly $5 million EBITDA becomes the cutoff. But beyond that, it's, you know, do you have the leadership team within your business that is gonna be able to kind of, you know, grow and scale? Do you have the leadership team? Do you have the processes? Do you have the technology? Do you have the vision? Those are kind of things that the buyer is looking for in a platform. And that, you know, we're betting on this horse. It's a little looser criteria if they're looking at an add-on. Yeah. The systems become a little bit less important. The processes become a little bit less important. If they're looking at an add-on, they're generally looking to, you know, add a product line, add a geography, add some kind of capability they don't already have. But it's a much higher threshold
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