A buyer's three filters
Before any detailed analysis, an investor runs a file through three successive filters, in this order: does the file fit the investment thesis, is profitability stable, and is there a management solution after the owner-manager leaves?
A file that fails the third filter is the most frequent case: a healthy, profitable company whose activity rests entirely on one person who is leaving. It is also the point on which a well-prepared intermediary adds the most value.
Our acquisition criteria
We publish our criteria to avoid pointless back-and-forth. A company that does not fit this framework receives a quick answer rather than an assessment that drags on.
- Geography: France, Belgium, Luxembourg and Switzerland.
- Turnover: between €1m and €25m.
- Profitability: positive and stable EBITDA over the last three financial years.
- Track record: company established for at least seven years.
- Context: owner-manager retiring or wishing to step back.
- Capital: we acquire a minimum of 50% of the capital.
The seller may, if they wish, retain a share of future results or withdraw gradually to support the new management.
Preferred sectors and excluded sectors
We favour semi-industrial production, B2B distribution, software and IT services, leisure parks and pharmaceutical laboratories. We do not invest in events, non-chain restaurants and construction.
These exclusions are not value judgements: they reflect profiles of seasonality, revenue recurrence and execution risk that are incompatible with a long-term holding model.
Do you have an SME to transfer in your portfolio?
Send us the file. An answer in principle within five working days, and a purchase position within thirty days if the criteria are met.
Submit an SME →How an introduction works
- Initial discussion to validate fit with the criteria, without confidential documents.
- Access to the accounts and a memorandum under a non-disclosure agreement.
- Written expression of interest, with a reasoned valuation range.
- Due diligence and structuring, then closing.
We keep the intermediary informed at every stage, including when the answer is negative. This is what makes it possible to keep working together on the next files.
What to prepare
Three documents are enough for a serious first assessment: the statutory accounts for the last three financial years, a statement of customer and supplier concentration, and an honest description of the owner-manager's exact role in the operations.
It is this third point, almost never documented, that determines the feasibility of the transaction and a significant part of the price. A frank description of the dependencies is worth more than a flattering presentation that will be contradicted in due diligence.
Key takeaways
- The most frequent breaking point is dependence on the owner-manager, not profitability.
- Our criteria: €1m to €25m turnover, stable EBITDA over three years, seven years of track record, a minimum of 50% of the capital.
- Three documents are enough to obtain a reasoned first answer.
Sources and references
The criteria and the process described in this article are PurpleShares' own. They do not describe the market as a whole, and other buyers apply different filters. We publish them to spare intermediaries pointless back-and-forth.
- PurpleShares acquisition criteria. The thresholds and the process described are ours. They are published so that intermediaries can qualify a file before any discussion.
- French Commercial Code, articles L.141-23 to L.141-32 and L.23-10-1 to L.23-10-12. Prior information of employees in the event of a planned sale. The first block covers companies with fewer than 50 employees, the second those with 50 to 249 employees.
This article is for general information purposes. It constitutes neither legal advice, nor tax advice, nor an investment recommendation. Sources last checked: September 2026.
