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In certain fragmented markets it is often easier and more efficient
to grow a business primarily by acquisition rather than to rely solely
on internal expansion. This strategy may involve the addition of complementary
businesses to a large initial platform or the roll-up of numerous small
businesses under a new holding company. By establishing critical mass quickly,
market momentum often accelerates, economies of scale drive margin improvement
and the business gains competitive advantage. Consolidated companies become more
profitable, serve their customers better and grow more quickly than their
competitors. Hampshire assists in the formation of these platform companies
and provides financing for subsequent acquisitions.
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