--- title: "Private Equity Deal Criteria: $3 to $15M EBITDA | Capstreet" description: "Capstreet invests in entrepreneur-owned business services companies with $3 to $15 million of EBITDA. See what we look for and our 12 industries." url: https://capstreet.multisites.ai/deal-criteria publisher: Capstreet phone: +1-713-332-2700 contact: https://capstreet.multisites.ai/contact --- # Capstreet deal criteria: the companies we look for Capstreet looks for entrepreneur-owned business services companies with $3 to $15 million of EBITDA. We make primarily majority investments, and entrepreneurs reinvest alongside Capstreet. We want a tenured team, solid financials, a defensive business model, untapped growth potential and a niche advantage. We invest across 12 industries. For ownersUpdated November 10, 20264 min read ![Downtown Houston skyline, home of Capstreet](https://capstreet.multisites.ai/_astro/houston-skyline.CI1wBZKY_syddD.webp) ## $3 to $15 million of EBITDA This is the earnings range Capstreet looks for in a company. ## Primarily majority investments Capstreet usually buys a majority stake. Entrepreneurs reinvest alongside Capstreet. ## Business services companies Capstreet seeks entrepreneur-owned businesses services companies across multiple industries. ## 12 industries From healthcare to government, each sector has its own page with Capstreet's own thesis. ## What size company does Capstreet invest in? Capstreet looks for companies with $3 to $15 million of EBITDA. [EBITDA](https://capstreet.multisites.ai/glossary/ebitda) is a company’s earnings before interest, taxes, depreciation and amortization. It is the measure most private equity firms use to compare businesses of different sizes. This is the first filter we apply. It places Capstreet in the [lower middle market](https://capstreet.multisites.ai/glossary/lower-middle-market), where owners often built the business themselves. You can read how that segment works in our guide to [lower middle market private equity](https://capstreet.multisites.ai/lower-middle-market-private-equity). Capstreet was founded in 1990 and is based in Houston. The firm brings 30+ years of experience, 50+ platform acquisitions and 200+ add-on acquisitions to each new partnership. ## What does Capstreet look for in a company? Capstreet seeks entrepreneur-owned businesses services companies. We want a team that is ready for a majority capital partner and a business with room to grow. The checklist below is how we describe a fit, in our own words. What we look for What it means for you Entrepreneur-owned businesses services companies You built the company, and it sells services to other businesses. $3 to $15 million of EBITDA Your earnings fall inside our range. Primarily majority investments We usually take a majority stake. Entrepreneurs reinvest alongside Capstreet You keep equity and share in what comes next. Ability to apply the Capvalue Framework® The business can use our three-part approach to growth. From our own site: “We look for businesses that have a tenured team of owners or managers seeking a majority capital partner, with solid financials, a defensive business model, untapped growth potential, and competitive advantages within their market niche.” We also say: “We focus on developing highly profitable, differentiated businesses that can be successful well beyond our ownership period.” ## Does Capstreet make majority or minority investments? Capstreet makes primarily majority investments. In a [majority recapitalization](https://capstreet.multisites.ai/glossary/majority-recapitalization), the owner sells a controlling stake to a partner and keeps part of the company. At Capstreet, entrepreneurs reinvest alongside us. That structure matters to many founders. You take money off the table and stay invested in the next stage. For the full picture of how a partial sale works, read our page on [recapitalization](https://capstreet.multisites.ai/recapitalization). You can also compare structures side by side in [majority vs. minority recapitalization](https://capstreet.multisites.ai/compare/majority-vs-minority-recapitalization). ## How does the Capvalue Framework® fit the criteria? The Capvalue Framework® is the way we work with every company we back. It has three parts: Research, Build Scalable Platform and Drive Business Transformation. A company that fits our criteria is one where we can apply it. Stage What we do Research Perform deep research to identify markets. Become educated on market dynamics and opportunities. Identify and establish relationships with key entrepreneurs. Build Scalable Platform Invest in top talent and technologies. Deploy industry best practices for growth. Provide functional expertise for scale. Drive Business Transformation Develop a long-term strategic roadmap. Execute buy and build strategy. Seek to deliver enduring value for customers, employees and investors. The third stage includes a [buy and build](https://capstreet.multisites.ai/glossary/buy-and-build) strategy. Under that approach, a [platform company](https://capstreet.multisites.ai/glossary/platform-company) grows through [add-on acquisitions](https://capstreet.multisites.ai/glossary/add-on-acquisition). Learn more on our [buy and build strategy](https://capstreet.multisites.ai/buy-and-build-strategy) page, or see how we describe the Framework on [Building Greatness](https://capstreet.multisites.ai/building-greatness). ## What industries does Capstreet invest in? Capstreet has experience in 12 industries. We are thesis-driven investors: we identify, research and become educated in the areas we invest. Each industry below links to a page with our view of that sector. - [Healthcare](https://capstreet.multisites.ai/industries/healthcare): business-to-business models that improve operating efficiency for providers and payers. - [Automotive](https://capstreet.multisites.ai/industries/automotive): solutions for dealer sales, marketing, finance and insurance, and service lane operations. - [Transportation logistics](https://capstreet.multisites.ai/industries/transportation-logistics): supply chain technology such as track and trace, TMS and WMS. - [Insurance](https://capstreet.multisites.ai/industries/insurance): technology-enabled services and software that support carrier operations. - [Construction](https://capstreet.multisites.ai/industries/construction): software for project and financial management for general and sub-contractors. - [Hospitality](https://capstreet.multisites.ai/industries/hospitality): businesses in a fragmented foodservice sector that technology is changing. - [Power and utility](https://capstreet.multisites.ai/industries/power-and-utility): maintenance services tied to upgrading the electric grid. - [Petrochemical and chemical](https://capstreet.multisites.ai/industries/petrochemical-and-chemical): technical maintenance providers for petrochemical plants. - [Manufacturing](https://capstreet.multisites.ai/industries/manufacturing): component suppliers and service providers to manufacturers. - [Marine](https://capstreet.multisites.ai/industries/marine): products and services for the marine industry. - [Legal](https://capstreet.multisites.ai/industries/legal): legal services and technology in a fragmented, under-adopted market. - [Government](https://capstreet.multisites.ai/industries/government): specialized vertical software for GovTech. Not sure where your company sits? See the full [industries overview](https://capstreet.multisites.ai/industries), or read about our [portfolio companies](https://capstreet.multisites.ai/our-companies). ## How do I start a conversation with Capstreet? Call 713-332-2700 or email [connect@capstreet.com](mailto:connect@capstreet.com). You can also write or visit us at 1001 Louisiana Street, Suite 3200, Houston, TX 77002. If you are interested in working together, we invite you to reach out. You do not need a finished sale process to talk. Many owners start by learning how a partnership works. Our guide on [how to choose a private equity partner](https://capstreet.multisites.ai/guides/how-to-choose-a-private-equity-partner) lists questions to ask any firm, including us. ## Is my company a fit if it is outside the range? Capstreet states its range as $3 to $15 million of EBITDA. If your earnings fall near the edge, or your situation is unusual, the direct way to find out is to call. We do not publish exceptions on this page. Here is a quick self-check against the criteria above: 1. Do you own or lead a business services company? 2. Are your earnings in the $3 to $15 million EBITDA range? 3. Is your team tenured and ready for a majority capital partner? 4. Do you want to reinvest and stay part of the company? 5. Does your company have solid financials and untapped growth potential? If you can answer yes to most of these, a conversation makes sense. If you are still deciding whether to sell, start with our page on [selling your business to private equity](https://capstreet.multisites.ai/sell-your-business-to-private-equity) or read about [business succession and exit options](https://capstreet.multisites.ai/business-succession-and-exit-options). ## Next step Read how the criteria apply to your sector on our [industries](https://capstreet.multisites.ai/industries) page, then reach out for a confidential conversation at [/contact](https://capstreet.multisites.ai/contact). Call 713-332-2700 or email [connect@capstreet.com](mailto:connect@capstreet.com). ## Frequently asked questions ### What size company does Capstreet invest in? Capstreet looks for companies with $3 to $15 million of EBITDA. EBITDA means earnings before interest, taxes, depreciation and amortization. It is a common way to measure how much a business earns from its operations before financing and tax choices. ### Does Capstreet buy a majority or a minority stake? Capstreet makes primarily majority investments. Entrepreneurs reinvest alongside Capstreet, so you can stay invested in the business after the deal. This is how Capstreet describes its approach. If you want to compare stake sizes before you call, read our guide on majority and minority recapitalization. ### What kind of company is a fit for Capstreet? Capstreet seeks entrepreneur-owned businesses services companies. We look for a tenured team of owners or managers seeking a majority capital partner, solid financials, a defensive business model, untapped growth potential and competitive advantages within a market niche. ### Which industries does Capstreet invest in? Capstreet has experience in healthcare, automotive, transportation logistics, insurance, construction, hospitality, power and utility, petrochemical and chemical, manufacturing, marine, legal and government. Each industry has its own page that explains how we think about the sector. ### How do I contact Capstreet about my company? Call 713-332-2700 or email connect@capstreet.com. The office is at 1001 Louisiana Street, Suite 3200, Houston, TX 77002. Reach out to start a confidential conversation about whether your company fits, and ask any questions about our approach. ## Terms on this page - [Majority Recapitalization](https://capstreet.multisites.ai/glossary/majority-recapitalization) - [Minority Recapitalization](https://capstreet.multisites.ai/glossary/minority-recapitalization) - [Lower Middle Market](https://capstreet.multisites.ai/glossary/lower-middle-market) - [Platform Company](https://capstreet.multisites.ai/glossary/platform-company) - [Private Equity](https://capstreet.multisites.ai/glossary/private-equity) - [Buy and Build](https://capstreet.multisites.ai/glossary/buy-and-build) - [EBITDA](https://capstreet.multisites.ai/glossary/ebitda) ## Sources 1. [Capstreet: What We Do](https://capstreet.com/what-we-do/) 2. [Capstreet: What We Do](https://capstreet.com/what-we-do/) Written by Capstreet and checked against the sources above on November 10, 2026. Market figures and deal practice change, and nothing here is legal, tax or investment advice. Ask your own advisers before you act. ## Check your company against these criteria Your company’s EBITDA Under $3 million$3 to $15 millionOver $15 million What your company does Business services or softwareSomething else Who owns it today Founder, family or employeesAnother investor What you want Sell a majority, keep a stakeSell a minority stakeSell 100% and step away Answer the four questions to see how your company compares with Capstreet’s published criteria. - Capstreet’s published range starts at $3 million of EBITDA. - Inside Capstreet’s range: $3 to $15 million of EBITDA. - Capstreet’s published range tops out at $15 million of EBITDA. - Capstreet invests in business services companies, including software and tech-enabled services. - Capstreet’s published focus is business services companies. - Capstreet looks for entrepreneur-owned businesses. - Capstreet’s published criteria describe entrepreneur-owned businesses. - That is Capstreet’s model: primarily majority investments, with entrepreneurs reinvesting alongside Capstreet. - Capstreet makes primarily majority investments. - In Capstreet’s model, entrepreneurs reinvest alongside Capstreet. Your answers match all four published criteria. Criteria are a guide, not a rule. Every company is different. [Start a conversation](https://capstreet.multisites.ai/contact) ## Keep reading - [Lower middle market private equity: what owners should knowLower middle market private equity means investing in smaller private companies, often founder-owned, with a few million dollars in earnings. Firms buy a stake, add management and capital, and grow the business. Definitions of the market vary by firm. Capstreet looks for companies with $3 to $15 million of EBITDA.](https://capstreet.multisites.ai/lower-middle-market-private-equity) - [How to sell your business to private equitySelling to private equity means a firm buys most of your company, usually with a mix of cash at close and equity you keep. You work through an intro call, a data request, a letter of intent, diligence and a close. Most owners stay on and invest alongside the buyer.](https://capstreet.multisites.ai/sell-your-business-to-private-equity) - [Buy and Build Strategy: How a Platform Company Grows Through Add-On AcquisitionsA buy and build strategy starts with one well-run platform company and adds smaller businesses to it over time. The goal is a larger, more capable company than any single piece could be. It fits fragmented industries best. Owners of smaller firms can sell to a platform and often stay on.](https://capstreet.multisites.ai/buy-and-build-strategy) - [How to choose a private equity partner for your businessChoose a private equity partner on fit, not only price. Compare how much you get in cash, what role you keep, how the firm treats your team, how it uses debt, and what past founders say. Ask for references from founders who sold to the firm, and ask your lawyer to review the terms.](https://capstreet.multisites.ai/guides/how-to-choose-a-private-equity-partner) - [Recapitalization: take cash out and keep a stake in what comes nextA recapitalization is a partial sale. An investor buys part of your company, you take cash out, and you keep the rest of your equity. In a majority recap the investor takes control. In a minority recap you keep control and sell a smaller stake.](https://capstreet.multisites.ai/recapitalization) - [EBITDA multiples in the lower middle market: what buyers paid and why prices differIn the first nine months of 2025, GF Data reported private equity buyers paying an average of 6.4x EBITDA for deals with enterprise value of $10 million to $25 million, and 6.8x for $25 million to $50 million. Averages hide wide gaps. Earnings quality, customers and management move your multiple.](https://capstreet.multisites.ai/guides/ebitda-multiples-lower-middle-market) ## Ready to get started? Let’s talk. Tell us about your company and what you want next. Conversations are private, and there is no obligation. [Start a conversation](https://capstreet.multisites.ai/contact) [(713) 332-2700](tel:+1-713-332-2700)[connect@capstreet.com](mailto:connect@capstreet.com) ![Capstreet team members at a Houston elementary school for Houston Reads Day](https://capstreet.multisites.ai/_astro/houston-reads-day.DxNd9bIr_tggWP.webp)