The standard private equity model is built on the "exit." The clock starts ticking the moment the deal closes. The goal is to boost EBITDA by any means necessary—often through aggressive cost-cutting—and sell to a strategic buyer or another PE firm within 3-5 years.
The Transactional Treadmill
This approach treats businesses as tradable commodities rather than living organisms. It incentivizes short-term thinking. Why invest in a new factory that won't be online for 4 years if you plan to sell in 3? Why train an apprentice who won't be productive for 2 years?
Flipping generates transaction fees, but it rarely generates true wealth. True wealth comes from compounding. And compounding requires time.
The Power of "Forever"
When you remove the artificial constraint of an exit timeline, decision-making changes. You can invest in R&D that might not pay off for a decade. You can build relationships that span generations. You can weather downturns without panic because you aren't forced to sell at the bottom.
At Adduco, we buy with the intention to hold. We are building a permanent home for great businesses. This alignment of interests attracts a different caliber of talent and partners—people who want to build something that lasts.