PE firms only interested in trades businesses above ~$3M value; appetite grows with deal size

The advisor describes a consolidation dynamic where private equity firms require trades businesses to be worth north of $3 million to be of interest, with appetite increasing as businesses reach the $5M-$15M range; smaller deals go to strategics or owner-operators.

“And so as a business gets in the 5 million range, the 10 million range, the 15 million range, the interest from private equity is is going to continue, it's going to get bigger and bigger and bigger. And so unless you're doing at least 3 million, it's going to be unusual for a private equity to even be interested in you.”

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