Which type of company serves as the core entity for bolt-on acquisitions?

A platform company serves as the core entity for bolt-on acquisitions because it is typically structured to integrate additional businesses easily. These companies have established an operational framework, market presence, and systems that facilitate the integration of new acquisitions, which can enhance their overall value and capabilities.

Platform companies often seek synergies through bolt-on acquisitions, allowing them to expand their product lines, enter new markets, or increase their customer base while leveraging their existing resources and infrastructure. By acquiring smaller or complementary businesses, a platform company can achieve growth without the complexities and risks associated with starting new ventures from scratch. This strategy not only bolsters the platform's competitive position but also enables a more streamlined approach to growth through acquisition.

In contrast, while secondary companies, growth companies, and subsidy companies may be involved in acquisitions or partnerships, they typically do not serve as the primary entity for integrating additional acquisitions in the same way that platform companies do. Each of these types has different operational focuses or strategic goals that make them less suited for this specific role.