How to interest large investors and private equity funds in your company

Do you wish to meet individuals who can speed up your development? There is one key revenue level that can get you to groundbreaking meetings.

“I think there is something magical about a million dollars in terms of showing the progress and scalability of a business,” says Laura Held, a partner at investment firm Shamrock Capital. He 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, founder and managing partner at Mizzen Capital – a group that invests debt in lower- and middle-market corporations that typically generate between $1 million and $10 million in EBITDA – says $1 million in EBITDA is the minimum a company must achieve to be eligible. achieve in most cases they even consider financing them. He says that is normally the bare minimum to interest a private equity group looking for additional acquisitions. (This occurs when a buyer buys a smaller company to incorporate it into an existing company – called a platform company – to increase its profitability or productivity). For example, the owner of a pharmacy chain may buy a courier company that can deliver medicines. “A $1 million EBITDA seems to be a key factor for them to take the time to do this and make it really profitable,” Adler says.