Why do I only have a few buyers / investors on my recommendation list?

Axial curates your recommendation list based on the following criteria from your project’s deal information form:

  1. Transaction type:
    • Are you looking to sell a business or raise minority capital?
  2. Terms:
    • Is this a turnaround situation?
    • If you’re seeking to sell a business, what is the management transition plan?
    • If you’re seeking to raise capital:
      • What type of capital?
      • If you’re seeking debt, what type?
      • What are the company’s intended use of funds?
      • What’s the total amount of capital you are seeking?
      • What is the minimum check size you are willing to entertain from one party?
  3. Geography
    • Where is the company’s headquarters located?
  4. Financial information
    • What are the company’s revenue, EBITDA, gross profit, CAPEX, and margins?
  5. Industry fit
    • What industry or industries does the company operate in?
  6. Language used in the teaser’s headline and description.
    • Does your teaser contain keywords of particular interest to the buyside members looking for opportunities?

In order for a capital provider to be recommended for your deal, they must match appropriately with the criteria based on their investment intent.

The most common reasons for a limited recommendation list are:

  1. The deal is pre-revenue or less than ~$5M in revenue
  2. The company is not profitable or has very low EBITDA
  3. The company is not based in North America
  4. The deal is for project financing with no current revenue or EBITDA
  5. The deal is a real estate project or asset, and therefore not an operating company