This Chart Is Another Example Of How Much Opportunity Is Lost When You Follow The Deal-Making Herd

From the research geniuses at Axial Market, we get a very telling chart about investor behaviour.

According to the chart below, the private equity industry looks for deals based on target EBITDA thresholds. That’s fine.

The problem is, it’s seems like everyone is looking at the same threshold. Check out the $1 million mark. Most investors are clustered there. And so it goes with other nice, round numbers like $2 million, $3 million, and $5 million.

The point is, come up with a more random threshold and see how your competition for deals fades away.

Chart (from Axial Market) below:

ebitda thresholds

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.