BMP's "Buy and Build" Approach
We apply our Core Company Investment Strategy, developed by the Boston Millennia Team over the past 25 years, where appropriate to enhance the growth of our portfolio companies. The Core strategy is based on the use of a strategic acquisition program to build a large-scale business around an existing company. We often identify potential Core Companies in fragmented, high growth markets that are undergoing a significant evolution.
The Core strategy extends beyond a traditional roll-up or “platform” buyout investment approach. It uses elements of those approaches to accelerate the growth of companies that have already demonstrated that they are positioned to benefit from the application of a proven technology or a shift in industry dynamics.
The goal of a Core Company acquisition is typically strategic; the acquired company will add new skills and business opportunities, in addition to horizontally expanding similar operations. Our Core Companies have completed over 200 acquisitions.
A Core Company should have strong local or regional market presence, be participating in rapid industry growth, and have competitive advantages from new technologies or strategies that drive change in the industry. We look for companies that have the potential to achieve at least $50,000,000 in annual revenues within three to five years. Our Core Company investments often result from proactive research efforts in targeted industries. Once a promising sector has been identified, we speak to industry leaders, attend industry conferences and trade shows, and conduct data driven research to identify Core Company candidates. We will then contact the management of these companies directly to initiate investment discussions. This form of proactive origination fosters Boston Millennia’s proprietary deal flow.
Our Core Company strategy mitigates risk in three ways: