A platform-type acquisition refers to a type of acquisition strategy in which a company acquires a platform technology or service that can be used as a foundation for future growth and expansion. Ideally, the acquirer looks for a business that provides a base of service or tech that can expand with “vertical stacking” of services or products in other sectors or within a sector. An example would be Pepsi buying taco bell, pizza hut, and KFC thirty years ago to penetrate and sell in their products.
In this type of acquisition, the focus is on acquiring a company or technology that provides a strong foundation or platform for further growth and expansion, rather than just acquiring a specific product or customer base. It is strategic in nature as opposed to purely financially driven although that is certainly a part of the puzzle
These types of deals require financially solid position and ideally a seller willing to be creative to a degree where immediate cash flow is subjugated to longer-term goals.
For more on buying and selling businesses in Florida contact Michael Shea P.A. at Transworld Business Advisors 321 287 0349 .