Free Guide: What PE Buyers Actually Look For
What Private Equity Buyers Actually Look For
The insider playbook on how PE firms evaluate, value, and acquire lower middle market businesses — and how to position yours for premium offers.
Private equity has transformed the lower middle market. PE firms now account for more than half of all M&A transactions in the $3M–$50M range — but most business owners have no idea what these buyers actually want, how they think about valuation, or what kills deals before they close. This guide pulls back the curtain.
What’s Inside
Chapter 1: Understanding the PE Landscape
How private equity works, the difference between platform and add-on acquisitions, and why PE firms are increasingly focused on the lower middle market.
Chapter 2: The PE Acquisition Checklist
The six criteria PE evaluates in every deal: EBITDA thresholds, revenue quality and predictability, growth trajectory, customer concentration, management team depth, and industry dynamics.
Chapter 3: What Kills Deals
The five most common deal killers: customer concentration, owner dependency, declining performance, financial quality issues, and unrealistic seller expectations — with specific thresholds and red flags PE firms watch for.
Chapter 4: What PE Will Pay
The EBITDA multiple framework explained: typical ranges by business profile (3-4x through 7-10x+), how PE builds up to valuation, and the specific factors that increase or decrease your multiple.
Chapter 5: How to Position for PE Acquisition
A 24-month preparation roadmap — from assessment and planning through market preparation — with quick wins that impress PE buyers and specific actions for each phase.
Plus: EBITDA multiple ranges by business profile, customer concentration impact tables, and a PE readiness self-assessment.
Who This Guide Is For
This guide is for business owners with $1M+ EBITDA (or a path to get there) who want to understand what private equity buyers actually look for — whether you plan to sell in 1 year or 5. If you’ve ever wondered whether PE would be interested in your business, what multiple you might command, or what you need to fix before going to market, this guide answers those questions directly.
About the Author
Daniel Askew is the Founder and CEO of Icon Business Advisors, a Nashville-based M&A advisory firm serving lower middle market business owners. With direct experience working with PE firms as both an operator and advisor, Daniel wrote this guide to demystify private equity and give owners the knowledge to negotiate from a position of strength.
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Not Sure If PE Is Right for You?
PE isn’t the only path to a successful exit. Explore our other resources:
The Complete Guide to Selling Your Business → Everything you need to know about the M&A process from start to finish.
Icon Exit: Sell-Side M&A Advisory → Full representation to get you what your work deserves.
Exit Planning → Build a business worth buying, whether you sell in 1 year or 5.