Dubbing 2014 the "Year of the Add-on" could give short shrift to last year's sky-high levels, yet the buy-and-build strategy has been in full force for PE firms this year—on pace to smash even 2013's decade-high tally. The primary cause has been iterated many a time: high valuations have led to a dearth of attractive investment opportunities, leading to the pursuit of relatively cheaper acquisitions and a focus on creating value in existing portfolios.
Click to explore add-on activity in the PitchBook Platform
Here are some other add-on trends we've noticed:
43% of add-ons are valued at $100 million or greater, a high point for the past 10 years.
B2B Commercial Services has already seen the most add-ons in this timeframe. The B2C sector is tracking to see its most since 2007.