The numbers shared in the recent Audax press release were incredible:
Audax Private Equity announced today that it has closed its 900th acquisition. Audax portfolio company, 42 North Dental, a regional provider of high-quality dental services in the Northeast, has acquired Northborough Dental Associates, a dental office in Northborough, Massachusetts.
The acquisition of Northborough Dental Associates is 42 North’s 21st add-on acquisition under Audax ownership. Audax Private Equity has invested over $5 billion in 126 platforms and 774 add-on companies.
Several items in that section caught my attention. First, not only is the number of platforms they’ve invested into amazing over 20 years – the sheer number of add-on companies is astounding. That adds up to over 6 platforms acquired annually and nearly 39 add-ons every year!
What makes this so significant is the digesting time it often takes to integrate an add-on into a platform company can be challenging. But it appears that Audax has certainly created a post-acquisition process that works really well.
This is how Young Lee, Managing Director of Audax, explained it:
“We partner with management teams, like the team at 42 North, who have the vision and drive to scale their organizations through acquisitions and organic growth. Through our disciplined Buy & Build philosophy, we seek to help our platform companies execute add-on acquisitions that fuel revenue growth, optimize operations, and significantly increase equity value.”
The strategy that Audax employs is actually very similar to many other PE firms that focus on the middle market and even those in the micro middle market.
What is really important for business owners to realize is that although it isn’t mentioned in their press release, it is on their website: For add-ons, they will look at companies with “EBITDA of any size”. For platforms, they are very specifically looking for companies that are larger (EBITDA minimum of $8 million); however, add-ons can be very small.
What matters to Audax is that the add-on must have some sort of potential synergies with the platform and that it has a management team that is open to having Audax professionals become involved in growing the business.
If this type of win-win scenario appeals to you, then you should set aside some time to attend a Generational Equity exit planning conference so you can learn more about buy and build strategies and how you can effectively position your business for the scrutiny of a private equity firm (and all buyer types for that matter).
Complimentary and highly educational, at our conference you will also have an opportunity to meet one-on-one with one of our M&A professionals and discuss your specific financial goals for both yourself and your business.
You can find a conference near you by using the following link:
If you can’t locate one in your area, or if you have any questions at all, please call us at 972-232-1121 or visit our website, provide us with your contact information, and we will be in touch.
And congratulations to the professionals with Audax for achieving results that few can match!
Carl Doerksen is the Director of Corporate Development at Generational Equity.
© 2019 Generational Equity, LLC All Rights Reserved
it all started with a conference.
start your story today,
speak directly with one of our senior advisors +1-972-232-1121
The information we learn from customers helps us personalize and continually improve your experience. Here are the types of information we gather.
We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice.
Generational Group’s affiliates are all part of one corporate family, they work with one another and may work together to provide services to you. The sharing of your information among affiliates enables Generational Group to serve you more efficiently and makes it more convenient for you to do business with Generational Group. Generational Group is permitted by law to share information with its affiliates. All of our affiliates follow similar privacy policies.
For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Group may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Group. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Group at its office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Group may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Group does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Group will be deemed NOT to be confidential. By sending Generational Group any information or material, you grant Generational Group an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Group is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Our computer system protects personal information using advanced firewall technology.
Information Generational Group publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Group intends to announce such products, programs or services in your country. Consult a Generational Group representative for information regarding the products, programs and services which may be available to you.
Generational Group makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Group web site, please understand that it is independent from Generational Group, and that Generational Group has no control over the content on that web site. In addition, a link to a non-Generational Group web site does not mean that Generational Group endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, Trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Group BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Group.
Success, you have been added to our list.