Buy-and-build correlates to more secondary buyouts

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PitchBook is publishing a new analyst note next week that does a deep dive on add-ons. One of the more striking findings is a correlation between additive platforms and how they eventually exit. The more add-ons a portfolio company undergoes, the more likely it will be acquired by another PE firm. Starting with the “zero” category—portfolio companies that never added on before exiting—the split between secondary buyouts (52%) and corporate acquisitions (46%) is almost even.