What is the average investor check size for a self-funded deal?

by a searcher from University of Pennsylvania - The Wharton School

3 years ago

I'm wondering what size checks outside investors typically write into self-funded search deals. 

For context, I'm looking to do a small self-funded deal ($1-3m total acquisition price). I'm guessing my check sizes might be a little smaller than average, but I'd like a more specific idea. I know check sizes can be a wide range but any sort of "median" or typical range would be helpful.

Thank you!

John

4 likes
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10 comments

searcher from University of Virginia-Darden - Darden School of Business

I'm looking to acquire within the same size range $500K-1,5MM SDE/EBITDA and will look at deals sub-$500K so this is a well timed question! What I've come across is the same line "It depends on the deal." But I've begun thinking differently about it and it comes down to 1. how many people do I want around the table actively invested in making the acquisition work? 2. how much economics do I want to give up? 3. the strength of the investor relationships that I have. I'm almost convinced that check size is an output of a number of inputs....

1 year ago | like reply | 0 likes

investor from Western Washington University

We are currently writing $300k-$500k equity checks for deals that meet our criteria: https://www.slackwatercap.com/criteria

1 year ago | like reply | 1 like

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