What number of employees should a target company have?

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March 21, 2022

by a searcher from Universidade Nova de Lisboa - Nova School of Business and Economics in The Hague, Netherlands

I am especially interested in European companies. I believe there should be some minimum and maximum number of employees, which are capable of working together without bigger bottlenecks and are not too complex to manage. I am also interested in any ratios (i.e. EBITDA/employee) that might help as a rule of thumb.

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Reply by a searcher
in Cincinnati, OH, USA
This depends on the industry and acquirers desire. Some buyers want high revenue/low headcount, which results in less personnel management but makes each position being filled more important. Other buyers prefer a larger headcount, which indicates if one position becomes vacant it's not as impactful to the overall operation.
commentor profile
Reply by a searcher
from Universidade Nova de Lisboa in The Hague, Netherlands
Thanks Kentin!
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