If you’re a middle-market business owner, chances are you’ve considered partnering with a private equity investor. If selected carefully, private equity firms and investors can provide profitability and new value to a company that may not have been able to prosper without it. However, business owners must consider their long-term goals and what they hope to achieve by partnering with a private equity firm.
As a business owner, it’s imperative to outline short- and long-term goals for the business and personal financial goals. Questions such as “What are your personal goals in selling the business?”, “How much involvement do you want in the business post-sale?” and “What resources will the business need from the PE firm outside of capital to prosper?” are all important for identifying if a partnership is the right move and determining a sustainable plan that will satisfy the owner’s goals.
It’s also important to realize that all private equity firms are not uniform— each has its own specialties and investment requirements. While some firms may be hands-off, others can be entirely operational-based, contributing insight regularly. Taking the time to evaluate firms and understand if the one you’re selecting will align best with your goals and culture is critical.
Evaluating the state of your business is crucial. Audits, competitive analysis, and business valuations are all things that business owners can do now to prepare their businesses for future success— whether they end up selling or not. Keeping your business and its success front of mind will lead to a more seamless experience and ensure flexibility in the future.
Our Advisor, Hank Riner, has ample experience working with private equity firms, including being an operating executive for two private equity firms prior to joining the Aberdeen team. When asked about partnering with a private equity firm, Hank shared, “Today there are over 7000 active private equity funds investing in private companies. The sheer number of potential investors can be overwhelming for the business owner looking for the best financial partner for the future. An experienced Mergers and Acquisitions Advisor will have the expertise, connections, and data intelligence to match the business owner with the best private equity sponsor that meets the owner’s professional, financial, and personal goals.”
Aberdeen Advisors isn’t a typical mergers and acquisitions firm. Each member of our team has successfully owned and/or run a business that has been successfully sold. We understand the expertise, trust, and attention necessary for each deal to succeed, and we pride ourselves on the hard work and commitment we provide to each business owner.
Our proven six-step process has enabled us to help business owners find the right buyer and ultimately get the highest sales price for their business. If you’re interested in a free consultation, reach out to the Aberdeen Team to learn how we can help you meet your selling goals.