Private equity

They underwrite growth, quality of earnings, defensibility, management, and value-creation levers — and stress-test the plan against a downside scenario before committing capital.

It varies. Lower-middle-market platforms may start at $3–5M EBITDA; upper-middle-market at $15–25M+; large-cap at $75M+. Growth equity can look below these thresholds where growth is strong enough.

Typically three to seven years, though longer holds are increasingly common with continuation vehicles and long-duration strategies.

A platform is the first company acquired in a roll-up strategy — chosen for scale, systems, and management to serve as the foundation for later bolt-ons.

A smaller acquisition added to an existing platform to expand geography, capability, customer base, or product. Bolt-ons blend cheaper than platform pricing and drive strong returns.

A platform is acquired at a target multiple, then a series of smaller businesses are added at lower multiples. The combined entity is sold to a larger buyer at a premium multiple — a multiple-arbitrage strategy that also creates operating scale.

Technology, financial services, healthcare, business services, specialty consumer, and fragmented industrial services — sectors where growth, quality of earnings, and consolidation opportunity align.

Yes. Rollover equity — where founders reinvest a portion of their proceeds into the new capital structure — is common in PE deals and lets founders participate in the second exit.

Selling shareholders reinvest part of their proceeds (often 10–40%) into the newco alongside the PE sponsor. This aligns incentives and can produce a substantial second-exit outcome.