Independent sponsors, private equity groups, family offices, search funds, and corporate acquirers all buy companies this size, and independent sponsors are the largest group. We track mandates, which are buyers' written statements of what they want to buy. Of about 434 current mandates whose EBITDA range includes $5 million, 121 come from independent sponsors, 67 each from PE groups and family offices, 55 from search funds, and 46 from corporate acquirers.
Who is looking to buy at $5 million of EBITDA?
We counted the current mandates on PrivSource in November 2026. A mandate counts when the EBITDA range the buyer gave includes $5 million.
| Buyer type | Mandates that include $5M | Typical EBITDA range (median low to high) |
|---|---|---|
| Independent sponsors | 121 | $1.0M to $5.5M |
| Family offices | 67 | $1.0M to $5.0M |
| Private equity groups | 67 | $1.0M to $15.0M |
| Search funds | 55 | $1.0M to $5.0M |
| Individual investors | 52 | $0.5M to $2.0M |
| Corporate acquirers | 46 | $0.75M to $5.0M |
| Holding companies | 25 | $0.5M to $3.0M |
Read the range column with care. For most kinds of buyer, $5 million sits at the top of the range they want. Private equity groups are the exception, because their median range reaches $15 million.
What is the company worth?
A company with $5 million of EBITDA is worth about $33 million at the 6.6x average that GF Data reported for private equity firms' first purchases in a new industry, at deal sizes of $25 million to $50 million in the first nine months of 2025. The IBBA and M&A Source Market Pulse for Q2 2026 reported a lower multiple, 5.8x, for companies sold for $5 million to $50 million.
The same Market Pulse found that 87% of deals over $5 million drew at least three offers, and 33% drew ten or more. A list of buyers who really match the company is what creates that competition.
How does each kind of buyer pay, and how do you reach it?
Independent sponsors find a company first and then raise the money to buy it, one deal at a time. In Axial's 2026 Independent Sponsor Report, 81.7% drew equity from wealthy individuals and 79.6% from family offices. Our guide on how brokers reach independent sponsors and search funds explains how to contact them.
Private equity groups buy with money already committed to a fund. They buy a company either as the first one in a new industry or as an addition to a company they already own. Send the teaser to the partner who handles deals, and to the CEO of any company the firm owns in the same trade.
Family offices invest their own money, so each one sets its own terms and decides how long to keep a company. Start with offices that already own a business in the industry. Our guide on how to find family office buyers covers the rest.
Search funds have to stretch to buy a company this size. The Stanford GSB 2026 study found a median purchase price of $16 million in 2024 and 2025, about half this company's value. Before you sign a letter of intent with a searcher, ask who their investors are.
Corporate acquirers pay for what your company adds to theirs, such as customers, a new region, or more capacity. Put competitors, suppliers, and customers at the top of that part of the list.
How should you build the list?
For a company with $5 million of EBITDA, we suggest a private list of 50 to 60 buyers. Here is a mix of about 55. Start with 15 independent sponsors who have bought a company in the industry and can name the investor who will put up the money. Add 12 private equity groups. Six should be funds whose smallest new purchase is $5 million of EBITDA or less, and six should already own a company in the trade.
Then add 10 family offices that own a business in the same industry or a nearby one. Add 10 corporate acquirers from among competitors, suppliers, and customers that can afford to pay about $30 million. Finish with 8 search funds whose investors have already committed.
Before you send a teaser, check the size range each buyer wants today. Before you agree to negotiate with only one buyer, ask every financial buyer where its equity comes from.
At $3 million of EBITDA, more search funds and individual investors match. You can compare this mix with who buys a company with $3 million of EBITDA.
Where PrivSource fits
PrivSource's AI Buyer List takes a description of your deal and returns the buyers who could want it, with the reason each one might buy. The buyer may have a current mandate on PrivSource, may have published what it looks for, or may have bought similar companies. Or its own business may gain from owning yours.
You see these buyers before you share any deal details, and you decide who receives the deal. It is free for advisors.
