SERIAL ACQUIRERS: HOW SOME COMPANIES TURN M&A INTO A CORE COMPETENCY

Serial Acquirers: How Some Companies Turn M&A into a Core Competency

Serial Acquirers: How Some Companies Turn M&A into a Core Competency

Blog Article

In today’s hyper-competitive and globalised marketplace, organic growth is no longer the sole engine for scaling a business. For many UK-based corporations, a more aggressive and strategic path lies in the realm of mergers and acquisitions (M&A). While M&A is often seen as a one-time, high-stakes endeavour, there exists a subset of companies—known as serial acquirers—that have made acquisitions an integral part of their corporate DNA. These companies don’t just dabble in M&A; they excel at it, turning it into a repeatable, value-generating machine.

The Rise of Serial Acquirers


Serial acquirers are firms that consistently and systematically acquire other companies as part of their long-term growth strategy. Unlike opportunistic buyers that engage in deals sporadically, serial acquirers pursue M&A with a clear, strategic purpose—be it gaining access to new markets, acquiring technology, building scale, or entering complementary sectors. These businesses leverage mergers and acquisitions not just to grow, but to transform.

In the UK, this model has gained significant traction across sectors like pharmaceuticals, fintech, and business services. Examples include companies like Halma, Bunzl, and Experian—each having completed dozens, if not hundreds, of acquisitions over the years. Their track record isn’t just about quantity but also quality; they tend to deliver superior shareholder returns and more stable earnings growth compared to peers.

Why Serial Acquisition Works


What makes serial acquirers so successful at what many see as a risky and complex strategy? The answer lies in three key capabilities: process, integration, and culture.

1. Institutionalised M&A Processes


One of the defining characteristics of serial acquirers is that they treat M&A as a structured process rather than a high-wire act. These companies have dedicated in-house teams that specialise in sourcing, evaluating, and executing deals. They maintain clear investment criteria and use disciplined due diligence procedures. Over time, they refine these playbooks, allowing them to move swiftly and effectively when a target appears on the radar.

In essence, these firms turn M&A from an art into a science.

2. Superior Post-Merger Integration


Many M&A transactions fail not in the deal-making phase but in the integration that follows. Here’s where serial acquirers truly shine. They develop repeatable frameworks to onboard and align acquired companies quickly—whether that’s aligning technology systems, merging financial operations, or unifying brand identity. They also tend to be selective about what they integrate and what they leave independent, depending on the nature of the business acquired.

This allows them to unlock synergies faster, retain key talent, and minimise customer disruption.

3. Cultural Compatibility and People Strategy


Another success factor is how these companies approach culture. Rather than imposing a rigid corporate ethos on new additions, successful serial acquirers focus on cultural compatibility right from the due diligence stage. They understand that people are not just assets but potential amplifiers of value. This perspective allows them to better manage change, earn employee buy-in, and foster innovation across acquired firms.

The Role of Corporate Advisory Services


Given the complexity of executing M&A at scale, many serial acquirers rely heavily on external expertise to supplement internal teams. This is where corporate advisory services play a pivotal role. Whether it's sourcing off-market deals, conducting valuation analysis, or structuring financing, advisors bring strategic insight and transactional experience that can make or break a deal.

In the UK, the corporate advisory landscape is particularly well-developed, with firms offering sector-specific expertise and global reach. From Big Four consultancies to boutique M&A specialists, the depth and breadth of available corporate advisory services enable companies to pursue acquisition strategies with confidence and clarity.

Metrics That Matter: Measuring Success


So how do you know if a serial acquirer is truly successful? Traditional metrics such as revenue and EBITDA growth only tell part of the story. The more telling indicators include:

  • Return on Invested Capital (ROIC): This metric highlights how efficiently a company turns its acquisitions into profits.


  • Accretion vs. Dilution: A good acquisition increases (is accretive to) earnings per share (EPS) over time.


  • Synergy Realisation: Whether projected synergies—cost savings, cross-selling opportunities, etc.—actually materialise.


  • Retention of Key Talent: A well-integrated acquisition often retains core leadership and talent from the acquired firm.


  • Organic Growth Post-Acquisition: Contrary to common belief, serial acquirers can catalyse organic growth by strengthening the parent company's capabilities.



Examples of UK Serial Acquirers


Let’s take a closer look at some UK companies that exemplify the serial acquirer model.

Halma


Halma, a safety and environmental technology group, is a classic example. With over 50 companies under its umbrella, Halma focuses on small, niche acquisitions that fit within its three key sectors: safety, healthcare, and environment. What makes Halma stand out is its decentralised structure, allowing acquired companies to retain autonomy while benefiting from shared strategic direction.

Bunzl


Bunzl, a distribution and outsourcing services company, has pursued over 150 acquisitions in the past two decades. Their strategy centres on consolidating highly fragmented markets across the UK, Europe, and North America. Their strength lies in integration efficiency and a laser-sharp focus on operational synergies.

Experian


Experian, one of the world’s largest credit reporting firms, uses M&A to acquire data sources and analytics capabilities, particularly in emerging markets. Their approach to post-deal integration and innovation enables them to stay ahead in a data-intensive industry.

The Risks and How Serial Acquirers Mitigate Them


Even the most successful acquirers face risks, especially in volatile economic climates or during regulatory shifts. Some of the most common pitfalls include:

  • Overpaying for Targets: Enthusiasm can inflate valuations beyond sustainable levels.


  • Integration Overload: Taking on too many deals too fast can overwhelm internal systems and personnel.


  • Strategic Drift: A lack of focus on long-term strategy can lead to a hodgepodge of acquisitions that don’t create coherent value.



Serial acquirers typically address these by enforcing deal discipline, pacing acquisitions appropriately, and maintaining a sharp strategic lens. In some cases, they even walk away from deals that don’t align—even if the price is right.

The UK Advantage


UK companies are particularly well-positioned to embrace serial acquisition models. The country’s transparent legal and regulatory environment, strong financial sector, and access to international markets make it a fertile ground for strategic M&A. Furthermore, post-Brexit, many UK firms have been actively using mergers and acquisitions to expand their footprint within the EU and diversify operational risks.

From a talent perspective, the UK’s robust pool of deal-making professionals—from investment bankers to lawyers and consultants—provides the necessary infrastructure to support such strategies. London remains a global hub for M&A expertise, providing companies with the resources and networks needed to succeed.

Future Trends: Tech, ESG, and AI


Looking ahead, several trends are shaping the future of serial acquisitions:

  • Technology as a Catalyst: Acquiring tech startups is becoming a go-to strategy for legacy firms looking to modernise rapidly.


  • Environmental, Social, and Governance (ESG): Increasingly, firms are using M&A to align with ESG goals, acquiring companies with strong sustainability credentials.


  • AI in M&A: Artificial intelligence is now being used to analyse potential targets, model integration scenarios, and streamline due diligence processes.



As these trends evolve, the skills required to be a successful acquirer are also expanding. Forward-looking companies will need to blend financial acumen with tech literacy, cultural intelligence, and a long-term view of value creation.

Serial acquisition is not for the faint-hearted. It demands vision, rigour, and a long-term commitment to continuous improvement. Yet, for those who master the model, the rewards can be significant: sustained growth, market leadership, and enhanced shareholder value. Whether it's Halma refining its decentralised approach, Bunzl perfecting operational integration, or Experian scaling globally through targeted data acquisitions, the message is clear—when done right, mergers and acquisitions can be more than just a growth lever; they can be a core competency.

For UK companies seeking to remain competitive in an increasingly complex global landscape, now is the time to consider whether a serial acquisition strategy could be the key to unlocking new levels of performance. With strong corporate advisory services, a disciplined approach, and a clear strategic vision, the blueprint is there. The question is—who will follow it?

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