What is a buy box?
A buy box is the short list of criteria an acquirer uses to decide which companies it will buy. It usually covers deal size (EBITDA or revenue), industry, business model, operating history, and quality signals like customer concentration and recurring revenue.
Knowing a buyer's buy box before you go to market saves months. Businesses that sit squarely inside it get faster diligence, cleaner terms, and fewer re‑trades. Businesses outside it often get polite passes, or no reply at all.
This checker scores your business against Cedar Sky Capital's investment thesis. The scoring approach applies to most lower middle‑market acquirers of online businesses.
Cedar Sky Capital's buy box
We acquire, operate, and grow established online businesses for the long term. See how we partner with founders on our portfolio strategy page.
| Criterion | What we look for | Weight in score |
|---|
| Sustained profitability | EBITA of $600K – $1.2M USD | 30 |
| Sector | B2B SaaS, e‑commerce, digital services; niche leaders | 15 |
| Track record | Multiple years of consistent profitability | 15 |
| Recurring revenue | Subscriptions, retainers, or high repeat purchase | 15 |
| Revenue diversification | No single customer or channel dominates revenue | 10 |
| Competitive advantage | Brand, data, IP, or switching costs that deter new entrants | 5 |
| Recession resilience | Held or grew revenue through the last downturn | 5 |
| Technology‑enabled scale | Operates primarily online or with a strong digital footprint | 5 |
Buy box FAQ
What is a buy box?
A buy box is the set of criteria an acquirer uses to decide which businesses it will buy: size (usually EBITDA or revenue), industry, business model, track record, customer concentration, and other quality signals. If your business sits inside a buyer's buy box, you are far more likely to get a fast, serious offer.
What is Cedar Sky Capital's buy box?
Cedar Sky Capital acquires established, online-focused B2B SaaS, e-commerce, and digital services businesses with a minimum annual EBITA of $600,000 USD, up to around $1.2M USD. We look for a strong track record, a durable competitive advantage, recession resilience, diversified revenue, technology-enabled scale, recurring revenue, and a clear path to expansion.
How accurate is the buy box checker?
The checker is a quick screen, not an offer or valuation. It scores your answers against our published criteria so you know whether a conversation is worth having. Every business we review gets a human look, and strengths in one area can offset a gap in another.
Do I need to sign up or share my email to use it?
No. The checker runs entirely in your browser. Nothing you enter is sent or stored. You only share details with us if you choose to submit your business for confidential review.
What is the difference between EBITDA and EBITA?
EBITDA is earnings before interest, taxes, depreciation, and amortization. EBITA excludes only amortization, not depreciation. For most asset-light online businesses the two are nearly identical, so use whichever figure you track, adjusted for owner add-backs such as above-market owner salary or one-off expenses.
My business scored below the threshold. What should I do?
Use the breakdown as a roadmap. The fastest ways to move into most buyers' buy boxes are growing profit, reducing reliance on your largest customers or channels, increasing recurring revenue, and documenting operations so the business does not depend on you. If you are close on several criteria, it is still worth submitting.
Is my information kept confidential if I submit?
Yes. Submissions are reviewed privately by Cedar Sky Capital and are not shared with third parties. After an initial submission we share our acquisition roadmap with founders so both sides can decide quickly whether to proceed.
