Buy & Build IT Strategy

Targeted Tech Choices to Strengthen Investment Theses

In Buy & Build strategies, operational alignment is often at the core of the investment thesis. Yet, while much attention is paid to financial consolidation and commercial synergies, IT structuring remains an underestimated lever. Technology can either accelerate integration and margin expansion—or quietly erode both. The key lies in making surgical, value-driven choices that match the intended trajectory of each deal.

“The IT stack must serve the investment thesis—not the other way around.”

1. Start with the thesis, not the tools.
‍In a Buy & Build strategy, aligning the IT roadmap with the thesis is essential. Too many platforms overbuild early, adding complexity and overhead that dilute value. Instead, each tool should be chosen based on the driver of value creation:
• If synergies rely on cross-sell between acquisitions → prioritize CRM.
• If the thesis hinges on procurement optimization → invest in ERP.
• If productivity gains are central → focus on operational tools.

2. Avoid the ‘full-stack trap’.
‍Trying to standardize every system too early often leads to oversized IT teams, fragmented interfaces, and increased holding costs. A lean, phased approach builds credibility—especially under audit. Auditors and future acquirers value simplicity, traceability, and coherence..

3. Start light, scale when needed.
‍For portfolios under €5M consolidated EBITDA, a light stack often suffices. Essentials might include:
• Finance: Sage 1000 or equivalent—robust and multisite-ready
• Cash management: Tools like Agicap to monitor liquidity at group level
• HRIS: Early adoption of Lucca or Silae if acquisitions share the same geograp

A full-fledged data hub isn’t mandatory at this stage. But it quickly becomes critical as the group scales, especially to support BI tools and performance dashboards across assets.

4. Examples across verticals.
‍Buy & Build plays vary by industry, and so should the IT stack:
• Accounting firms: Automate recurring tasks with tools like Pennylane and Silae
• IT services (ESN): Deploy lightweight CRM (Salesforce, Dynamics) and time tracking (Napta, Stafiz)
• Shipyards: Focus on purchasing (ERP) and design collaboration (PLM)

Outside the core stack, localized tools will coexist. That’s normal. The goal isn’t full harmonization from day one—but defining a referential architecture that leaves room for controlled flexibility.