Panel of Bankers Reels Off What Catalog Company Buyers Want

Solomon noted that he looks for sales growth and increasing gross margins, because they represent the catalogers’ ability to have positive relationships with their customers. “That’s very telling in terms of your position with your customers,” he said.

5. Combine high gross margins and high sales growth so people will excuse low EBITDA, Solomon said. But potential buyers will ultimately value your business on sustainable EBITDA — they want three good years of EBITDA growth.