Experience shows that companies below a $50 million revenue threshold typically lack the necessary systems, processes, and people to support a significant transformation. This creates a bright-line rule for Speyside: go small for bolt-ons, but not for platform companies that require a turnaround, as the risk-weighted returns are unfavorable.

Contrary to the popular image of founders pitching VCs, Rohan Oza's firm, Kavu, operates on the principle that the best deals must be actively sought out. They employ a dedicated team for 'the hunt,' proactively sourcing promising brands and founders instead of relying on passive inbound deal flow.

To source proprietary hybrid capital deals, avoid the capital markets teams at PE firms, as their job is to minimize cost of capital. Instead, build relationships directly with individual deal partners in specific industries. This allows you to become a trusted, go-to provider for complex, time-sensitive situations where speed and certainty are valued over price.

Contrary to the popular belief that strategic buyers dominate, 70% of B2B SaaS acquisitions between $2M and $20M ARR are made by private equity firms or their portfolio companies. This makes the market opaque for founders, who often receive bad advice and undervalue their businesses by not understanding the primary buyer class.

Over 80% of TA's investments are proprietary deals with founders who aren't actively selling. Their strategy focuses on convincing profitable, growing businesses to partner to accelerate growth, framing the decision as "partner with us" versus "do nothing." This requires a long-term, relationship-based sourcing model.

Parker Gale intentionally keeps its fund and target company size small. This is a deliberate strategy, not a limitation. It allows them to operate in a target-rich environment with less competition from mega-funds and provides a clear exit path by selling to larger PE firms that need smaller, proven platforms to build upon.

In today's crowded market, the key PE differentiator is no longer financial engineering but the ability to identify and cultivate relationships with target companies months or years before a sale process. This provides the necessary time for deep diligence and strategic planning.

Traditionally, investment bankers ignored smaller SaaS deals. A market shift occurred when private equity funds began acquiring smaller companies (sub-$20M ARR). This created a need for specialized M&A advisory firms who understand this new universe of PE buyers and their specific deal structures.

Contrary to the popular search fund model of targeting $1M+ EBITDA businesses, a less risky path is to start with smaller companies ($100k-$250k earnings). This lowers complexity, reduces the potential for catastrophic failure, and provides invaluable hands-on experience for first-time acquirers.