Platform vs. Add-On Acquisitions: How Private Equity Decides Your Valuation Multiple

About this episode

Kirk Michie explains the difference between platform and add-on acquisitions and their impact on valuation and deal structure in private equity.

When founders begin talking with investment bankers or private equity buyers, they often hear terminology that has little to do with how they actually operate their business. One of the most important examples is whether a company is viewed as a “platform” investment or an “add-on” acquisition. In this episode, Kirk Michie breaks down what those categories mean, how buyers use them, and why the distinction can materially affect valuation, deal structure, and buyer interest during an M&A process.

People in this episode

Host: Kirk Michie

Topics covered

• private equity
• valuation
• M&A process
• platform investment
• add-on acquisition
• deal structure

Keywords

• private equity
• valuation multiple
• M&A
• investment banking
• deal structure
• platform investment
• add-on acquisition

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