For searchers, closing the first acquisition is a milestone, but often just the beginning. Many go on to pursue add-on acquisitions as a way to scale faster, expand product lines, or enter new geographies. Done right, add-ons compound value. Done wrong, they can destroy it.

Bolt-on acquisitions can increase market share, diversify customer bases, and unlock cost synergies. A search-backed HVAC company, for example, might add a regional peer to deepen its footprint or acquire a niche service provider to broaden offerings. Across private equity, add-ons have fueled a large pie of the industryʼs outperformance. ETA operators often look to mirror that playbook on a smaller scale.

But the pitfalls are equally real. Integration challenges can strain thin management benches. A misaligned culture or rushed diligence can erode the value of both companies. And financial overreach, layering debt too aggressively to fund bolt- ons, can trap searchers in businesses unable to weather downturns.

What separates the wins are three consistent factors:

The financial angle also matters. Some searchers line up committed equity or debt facilities early, giving them the agility to move quickly. Others rely on seller notes, rollovers, or earn-outs to bridge gaps without over-levering. Regardless of structure, add-ons should never compromise the resilience of the core business.

Ultimately, add-ons must fit into the bigger story. The goal isnʼt to collect companies but to build one stronger, more defensible platform. Every acquisition should reinforce the whole and support the exit (or long-term hold) you are building toward.

ETA acquirers should expect the J-Curve. The first year after buying a business often dips before recovery begins. Turnover, hidden CapEx, customer churn, and replacing an owner who did the work of several people can all weigh on results. Add to that the buyerʼs learning curve, loss of seller knowledge, and breaking old systems, and turbulence becomes the norm. The smarter play is to plan for volatility in the first 12–18 months rather than be blindsided by it.

Completed Fundraise:

UK-based Perennia Capital, founded by Melda Eren in 2025, has launched with backing from Relay Investments, Istria Capital, and Ambit Partners. Eren brings a decade of global experience in consulting, investment, and operations, including leadership roles at Getir, Rocket Internet, and Singular Group. Perennia is seeking to acquire a profitable B2B services company in the UK with £5–25M annual revenue, strong margins, and recurring income streams.

Transactions:

Spain-based Emotion Mobility, created by Ibérica Partners through the 2020 acquisitions of Carpro and Jimpisoft, has secured a strategic growth investment from PSG Equity. The company reported €13M revenue and €6–7M EBITDA in 2024 and expects €9M EBITDA in 2025. Serving nearly 1M vehicles, Emotion counts Avis, Europcar, Hertz, and Volkswagen as clients. The deal marks one of the most successful European exits to date.

Poland-based Cedo Capital, founded by Monika Wincel in 2024, has acquired Rolfroz, a national leader in vegetable processing, in a deal estimated at PLN 80– 170M (€20–40M). Rolfroz generated PLN 80M (€19M) revenue and PLN 25M (€5.8M) EBITDA in 2024, with 20% CAGR. The transaction was backed by Ambit Partners, Istria Capital, and Innesto Partners.

Robert Shore (Shorefox Partners) explains why sector depth beats generalism, how to apply an AI-risk lens in diligence, practical tactics for broker vs. proprietary deal flow, and budgeting for broken deals. A candid look at why age, specialization, and resilience can be real advantages in search.

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