Add-on acquisitions have become private equity’s main deal tactic, with firms favoring smaller targets over full buyouts in a tougher 2026 market.
Lower valuations on those smaller deals are driving the shift, letting firms keep deploying capital even as larger buyouts have become harder to execute.
The strategy marks a playbook change rather than a retreat from dealmaking, with firms still pursuing acquisitions but concentrating on bolt-on transactions.
That pivot underscores how a difficult buyout environment is reshaping private equity toward incremental expansion instead of headline-grabbing takeovers.