Look past the private equity funds. Of the 484 live buyer mandates on PrivSource whose EBITDA range includes $3 million, only 51 come from private equity groups. Independent sponsors (121), search funds (71), and family offices (69) all outnumber them. Build the list from those buyers plus PE-backed platforms in your client's trade, then confirm each one's current criteria before you send a teaser.
Who is buying at $3 million of EBITDA?
We counted live mandates on PrivSource on October 3, 2026. A mandate counts when its stated EBITDA range includes the size.
| Buyer type | $3M EBITDA | $5M EBITDA |
|---|---|---|
| Independent sponsors | 121 (25%) | 97 (25%) |
| Search funds | 71 (15%) | 59 (15%) |
| Family offices | 69 (14%) | 63 (16%) |
| Individual investors | 64 (13%) | 36 (9%) |
| Corporate acquirers | 52 (11%) | 42 (11%) |
| Private equity groups | 51 (11%) | 49 (13%) |
| Other buyers | 56 (12%) | 41 (11%) |
| All live mandates | 484 | 387 |
Axial reports the same pattern on its own network. Independent sponsors closed 27% of deals there, more than any other buyer type, against 20% for private equity funds, according to Axial's 2025 Independent Sponsor Report.
Why do so few PE funds show up?
Size. A $3 million EBITDA company is worth about $18 million at the 5.9x average GF Data reported for platform buyouts of $10 million to $25 million. Most funds want a larger platform.
Private equity still buys at this size, but through its portfolio companies. Add-ons were 72.9% of U.S. buyouts in 2025, according to PitchBook data cited by Cherry Bekaert.
So search for platforms in your client's trade, then list the sponsor next to each one. The platform CEO is often the person who decides.
Where to find each buyer
- PE-backed platforms: filter a database such as PitchBook or Grata for portfolio companies in the same industry. Our guide to the best private equity buyer databases compares them by budget.
- Independent sponsors and search funds: Searchfunder, the McGuireWoods Independent Sponsor Conference, and ACG chapters. A traditional search fund's median deal in 2024 and 2025 had $2.5 million of EBITDA, per the Stanford GSB 2026 Search Fund Study. Your deal sits in their range.
- Family offices: start with offices that already own a company in the industry. See how to find family office buyers.
- Corporate acquirers: competitors, suppliers, and customers of your client.
Expect several offers
Buyers compete at this size. In the IBBA and M&A Source Market Pulse for Q2 2026, 87% of deals over $5 million drew at least three offers. The reported multiple for the $5 million to $50 million segment rose to 5.8x EBITDA, its highest since early 2022.
A long list helps only if each name can close. Independent sponsors and search funds raise equity after the LOI, so check their investors before you grant exclusivity.
Build the list in this mix
Buyer list for a $3 million EBITDA deal (about 50 names)
- 15 PE-backed platforms in the same trade, each with its sponsor named.
- 10 independent sponsors with stated criteria in the industry.
- 10 search funds still searching, with investor backing confirmed.
- 8 family offices that already own a business in the sector.
- 7 strategic buyers: competitors, suppliers, or customers.
Cut any buyer whose stated size range excludes the deal. Rank the rest by how recently they bought in the industry.
Change the mix for the industry. Business services and manufacturing were the two most common industries in the $3 million mandates we counted.
Where PrivSource fits
AI Buyer List turns your deal description into a list of buyers who fit, each with a strategic reason to buy: a live mandate on PrivSource, stated criteria, a track record, or profile fit.
You see who fits before you share deal details, and you choose who receives the deal. It is free for advisors.
