Today’s newsletter comes from a recent email written by our own Ross Tomkins:

Last week, a new member joined my community, the space I created for founders to learn and grow together.

We had a great first chat. He asked me about my go-to strategies when buying businesses. We ended up talking about something I use all the time that I thought to share with you.

The Bolt-On Strategy

The idea behind it is simple:

You start by buying a single business in a particular industry, and then you bolt other businesses behind it to increase value.

The combined entity ends up stronger, more efficient, and 2x-3x more profitable than the individual pieces.

But before you put a bolt-on strategy into action, here are 3 things to keep in mind:

1. Find Complementary Businesses

Don’t just look for any business to buy...

Focus on ones that naturally fit with what you already do — whether it’s overlapping customers, similar operations, or complementary services.

The new business should add real value to your existing one.

2. Focus on Integration

Acquiring multiple businesses is only half the story…

The real gain comes from bringing them together in a way that’s more efficient as one operation.

This could mean unifying shared functions like marketing, admin, and sales — or maybe saving costs when you consolidate roles (like leaving 1 accountant to handle everything — instead of 3).

Instead of running 2-3 separate machines, create 1 more efficient operation.

3. Understand the Strategic Advantage

A bolt-on only works if it gives you something extra, better capabilities, wider reach, or more profit potential. So, don’t buy for size alone.

Think about how each acquisition strengthens your overall platform and opens up opportunities you couldn’t have if the businesses were separate.

This is the part most founders overlook, but it’s the difference between a good acquisition and a transformative one.

—Ross

The Acquiring & Exiting Newsletter is brought to you by the same team behind the Business Acquisition Summit.