Does anyone have MOIC and IRR targets for investors?

by a searcher from Emory University

4 years ago

I'm putting together a model to determine the size of company I would like to purchase.  I'm wondering if anyone has any experience on what return investors are looking for with ETA type investments. Is there a good range and minimum investment size investors are looking to make?   

With the equity I can put down, I'm looking for a small investments of ~$50-150k from investors and trying to determine what's a reasonable assumption for how much equity they would want in a 650K SDE business.

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6 comments

searcher from The University of Chicago - Booth School of Business

Usually IRR stops being helpful after 5 years, so often you may switch to a MOIC if you are holding for a longer period as well. Traditional search###-###-#### %IRR

1 month ago | like reply | 0 likes

searcher from The University of North Carolina at Chapel Hill - Kenan-Flagler Business School

I think most investors look for worst case scenarios of 25% IRR, but ideally closer to 35% IRR with conservative assumptions.

10 months ago | like reply | 1 like

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