We used buyer needs to shape our advice. Our focus is to help owners build sound profits and cash flow, with a team that can support growth.
Regen Advisory researched the buying criteria of more than 300 Australian private-equity firms. These investors take ownership stakes in businesses. We brought their requirements into one view to understand what owners may need to prepare for a sale or investment.
The gap between small business and private equity
Australia has millions of small businesses. Most sit below the revenue ranges sought by the private-equity buyer profiles in our research. A business can grow into those ranges, but revenue alone will not make it investment-ready.
Australian business snapshot · June 2025
Where Australian businesses are
Active businesses
2,729,648 actively trading businesses at 30 June 2025.
Fewer than 20 staff
Including businesses with no employees.
Less than $2m revenue
Businesses with annual turnover below $2 million in 2024–25.
Source: Australian Bureau of Statistics, Counts of Australian Businesses, 2024–25; Australian Small Business and Family Enterprise Ombudsman, business size by employment. These figures refer to June 2025.
Research across 300+ firms
What buyers looked for
The research covered different buyers and business sizes. These are examples of the criteria we found, not a single set of requirements shared by every private-equity firm.
$2–100mAnnual turnover
- Australian headquarters.
- At least three years of profitable operations.
- A clear growth strategy.
$10–50mAnnual revenue
- Past profits and stable cash flow.
- A capable management team.
- Equity investments typically $2–10m.
$5–20mAnnual revenue
- $0.5–5m EBITDA.
- EBITDA margins of 15% or more.
- Mature, cash-generating businesses.
Revenue means annual sales. Equity investment refers to money invested for an ownership stake. EBITDA means earnings before interest, tax, depreciation and amortisation. A 15% EBITDA margin is $15 of EBITDA from every $100 in sales.
What the findings mean
The revenue ranges show the size of business different buyers seek. The other criteria show what the business must demonstrate.
Past profits give a buyer a record to assess. Stable cash flow shows whether sales become money the business can use. A capable management team makes it easier for the business to operate under new ownership. A credible growth plan explains where new sales will come from and the people and funding needed to deliver them.
Consider a business with $10 million in sales. It may fit several buyer revenue ranges but still have weak profit, unpaid invoices or too much reliance on its founder. Meeting the revenue threshold does not resolve those problems.
What this changed for our advice
We use the findings to focus advisory work on profit, cash flow, management capability, owner dependence and the practical cost of growth.
Our Commercial Review & Roadmap compares an owner's goals with the business as it stands. It identifies the gaps and sets the order for the work. A Commercial Project addresses a defined issue. Ongoing Commercial Advisory helps owners track progress and make decisions.
Some owners want to sell or bring in an investor. Others want a stronger business to keep. The same disciplines help both: reliable earnings, working cash flow, capable people and a plan the business can deliver.