101 Combining Pre-Exit with Buy-Build Strategy

A pre-exit transaction (PET) strategy is a business growth approach that involves preparing a company for a future acquisition or initial public offering (IPO). A PET strategy typically involves optimising a company's financials, operations, and market position to make it more attractive to potential buyers or investors. On the other hand, a buy-build transaction (BBT) strategy focuses on acquiring other companies or building new business lines to expand a company's product offerings and customer base.

Combining a PET strategy with a BBT strategy can be an attractive approach for founders and executive teams of tech-companies and tech-enabled service companies for several reasons:

1. Enhancing growth potential: By combining a PET strategy with a BBT strategy, companies can accelerate their growth trajectory and increase their potential valuation. Acquiring other companies or building new business lines can help to diversify a company's revenue streams and expand its market reach, making it more attractive to potential buyers or investors.

2. Achieving operational efficiencies: Through acquisitions or new business lines, companies can realize operational synergies that lead to cost savings and improved efficiency. This can increase a company's profitability and make it more attractive to potential buyers or investors.

3. Mitigating risk: By diversifying their product offerings and customer base, companies can reduce their risk exposure and become more resilient to market changes. This can help to increase the likelihood of a successful exit, whether through acquisition or IPO.

4. Attracting top talent: Building a carrier for growth through PET and BBT strategies can create a dynamic and attractive company culture that attracts top talent. This can help to further drive innovation and growth within the company.

Overall, combining a PET strategy with a BBT strategy can be an effective approach for tech-companies and tech-enabled service companies looking to build a carrier for growth. By diversifying their revenue streams, optimizing operations, and mitigating risk, these companies can increase their potential valuation and become more attractive to potential buyers or investors.