Deal Sourcing for $2mm+ EBITDA?

October 29, 2024

by a searcher from Duke University - The Fuqua School of Business in New York, NY, USA

Have others found the flow of businesses on common resources like BizBuySell is mostly <$1mm in EBITDA? For those looking for modestly larger transactions (e.g., $2mm+ in EBITDA or $10mm in TEV), do these resources still work or is that where small-cap bankers may provide flow? I understand that 1+1=2, but would love to land a larger deal to establish the platform. Thanks!

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Reply by a searcher
from Northwestern University in Concord, CA, USA

Thanks for engaging ^redacted‌, OP (original poster) as others above have stated platforms like Axial are a great place to find larger deals as well as establishing a list of brokers that are marketing those deals. It is always good to then reach out and connect with those brokers to help increase your visibility to their deal flow above and beyond what is shown on the platforms like Axial. Same line of thinking would apply to all other platforms noted above by others.

Reply by a searcher
from Dartmouth College in Boston, MA, USA

We are similarly targeting slightly larger deals ($2M+ Adj. EBITDA). Generally, these deals seem to have representation (e.g. i-banker/M&A advisor). That said, we've seen several deals that size come in organically via our networks, even if they also have some form of representation. This seems to be the cause often because the owner has an aversion to bankers, or has M&A experience themselves and would prefer to forgo representation.

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