With the challenges currently seen in the M&A market for
large-scale standalone acquisitions, one widely applied M&A
strategy is "buy and build", namely serial acquisitions
in the same or adjacent markets in order to grow scale and profits
and leverage multiple arbitrage on the acquired assets.
We see the commercial sense in this strategy commonly where
assets serve localised markets, such as retailers, wholesalers and
local service providers (such as vets, dentists, and gyms).
However, there may be material merger control risks associated with
such a strategy.
Firstly, while UK merger control is ostensibly voluntary, over
the last three years the CMA's Mergers Intelligence Unit (MIU)
has reviewed approximately 700 unnotified transactions per year and
opened Phase 1 investigations in relation to 40–60 per year.
In short, flying under the radar is hard. Moreover, the CMA is
interested in preserving competition in local markets, as well as
national and international
