Expand Multiple by Zone-Skipping EBITDA
In just 4 years, Bobby Sheth has closed 10 platform deals, a rare pace for an independent sponsor. He focuses not on perfect companies, but on those with fixable issues like supply chain or people risks. Bobby explains how skipping EBITDA zones expands the buyer universe and how conservative deal structures create room to navigate surprises.
At Salt Creek Capital, Bobby Sheth looks for businesses with operational gaps, customer concentration, or supply chain risk. These factors often discourage other buyers, but represent opportunity in Bobby's model.
Bobby relies on disciplined deal structuring. He avoids excessive leverage, keeping it
His most recent acquisition from late 2024 sources 90%+ from China. Tariff exposure was a real risk, but instead of walking away, Bobby modeled downside cases and structured the deal to absorb potential shocks (which materialized!). The company is consequently not only weathering the current tariff storm, but hopefully also growing market share as some peers struggle to survive.
He also emphasizes EBITDA zone skipping. When a company grows from $3.5m to $5.1m, it attracts a new class of buyers. That growth expands the pool of interested acquirers with more capital and broader mandates.
Check today's new episode of the Minds Capital Podcast.
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