Glossary · Deal process
Bolt-on acquisition
Also called add-on acquisition, bolt-on
Definition
A bolt-on (or add-on) acquisition is a smaller company bought and folded into an existing platform business, usually one owned by a private equity fund. Bolt-ons add customers, products or regions, and they are the building blocks of a roll-up strategy.
Related terms
Roll-up A strategy of buying many smaller companies in one sector and combining them into a larger group. Post-merger integration Combining two businesses after a deal closes: people, systems, processes and customers. Binding offer A buyer's final offer after due diligence, usually with a marked-up purchase agreement attached. Buy-side The buyer's side of a deal: the acquirer or investor, and the advisers who help them find, check and price a target. Carve-out The sale of a division or business unit that has to be separated from its parent company. Clean team A small, ring-fenced group allowed to see a competitor's sensitive data during a deal, under strict rules. Corporate development The in-house team that finds, runs and integrates a company's acquisitions and partnerships. Distressed M&A Buying or selling a business in financial trouble, often under time pressure or in insolvency.