How to Get Big Investors and Private Equity Interested In Your Company

Date:

Share post:


Want to meet the people who can accelerate your growth? There’s one critical revenue mark that will get you into make-or-break meetings.

“I think there’s something magical about a million dollars in terms of just showing progress and scalability of the business,” says Laura Held, a partner at the investment firm Shamrock Capital. She says $1 million in revenue before EBITDA — interest, taxes, depreciation, and amortization — is a noteworthy metric that puts you on the map for everyone from angel investors to debt financiers.

Marilyn Adler, a founder and managing partner at Mizzen Capital — a group that invests debt into lower middle market companies, which usually generate from $1 million to $10 million of EBITDA — says $1 million in EBITDA is the minimum a company must hit for her to even consider funding them in most cases. She says it’s also usually the minimum to be of any interest to a private equity group looking for add-on acquisitions. (This is when a buyer purchases a smaller company to incorporate into an existing business — known as the platform company — in order to make it more profitable or productive.) For example, the owner of a pharmacy chain might purchase a courier company to deliver medications. “That $1 million of EBITDA seems to be a critical mark for them to spend time on it and really make it worthwhile,” says Adler.

The rest of this article is locked.

Join Entrepreneur+ today for access.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related articles

7 Craigslist Alternatives for Easy and Secure Transactions in 2024

Believe it or not, Craigslist started as an email list for friends in San Francisco way back...

How to Get a Job Removing Spam Comments From Home in 2024

Are you looking for an easy way to make money from home without a crash course in...

How This 33-Year-Old’s Printables Blog Earns $6.5k+ Per Month Through Email Marketing

Kelly Crean knew early on that she wanted to be a mom and stay home with her...

United Airlines Just Announced a Big Change for Passengers, and I Didn't Even Know This Was a Thing

This why I like writing about airlines. You learn something new every day.