Reaching critical mass is the goal of every business whether stated or not. Critical mass is the point at which a growing and mature company becomes self sustaining and no longer needs the infusion of investment capital to grow and prosper. Many businesses never reach this point. They remain profitable, but do not earn enough to grow the business to a desired level.

The term critical mass, is also commonly used by private equity companies in connection with their platform companies that are rolling up a group of smaller companies in a specific industry. When a platform company is large enough to reach a certain size, it has reached critical mass, allowing it to command better pricing and terms with its vendors due to the combined, increased volume of business.

Inorganic Business Growth

Organic Business Growth

Reasons for Mergers and Acquisitions

Mergers and Acquisitions

Synergy

Private Equity Funds