Why add-on programs stall
The value creation plan calls for several add-ons. The platform CEO is running the business. The deal partner covers several portfolio companies. Nobody owns the daily work of finding, contacting and qualifying owners, so the program runs on inbound broker teasers, and add-ons arrive slower and pricier than the model assumed.
The structure that works
| Role | Owns |
|---|---|
| Sponsor deal partner | Thesis approval, valuation discipline, financing |
| Platform CEO | Fit, management meetings, integration |
| Outsourced corp dev team | Market map, owner outreach, screening, pipeline reporting, process management |
What the board should see
- Companies mapped and contacted, by segment and geography.
- Owners in conversation and their stage.
- Targets in diligence, with expected timing.
- Reasons targets were declined, which sharpens the thesis.
Our acquisition program reporting resource shows a sample format, and what a corporate development pipeline report should show explains it.
Growth on both sides of the plan
Add-ons are half the value creation plan. The other half is organic growth, where new channels such as ChatGPT ads for service platforms can be rolled out to each acquired brand.
Frequently asked questions
Does the outsourced team represent the platform in outreach?
Yes, confidentially and with messaging the platform approves. Owners hear from a team that knows the thesis and can answer early questions.