Seeking larger cash cows?

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July 08, 2024

by a searcher in New York, NY, USA

I've seen some deals###-###-#### million in ebitda) that trade at 3-5x ebitda range. These tend to be businesses in unfavored industries (typically not service based businesses) that are difficult to grow, lower margin businesses, high working capital requirement, etc. Tend not to be good acquisition targets by traditional searchers given its hard to pump a 35%+ IRR on the equity invested.

I'm working on my 2nd deal now and I'm looking for companies that fit this criteria. I'll be investing my own equity. Please comment below and I will reach out if you have a deal that fits this criteria.

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Reply by a searcher
from University of Pennsylvania in Indianapolis, IN, USA
You're looking to acquire these types of businesses? Unfavorable industries that could potentially be stagnant and/or low margin, but throw off solid free cash flow?
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