
M&A Talk: #1 Podcast on Selling a Business
For New Sellers: The Basics of Selling Your Company to a PE Firm
May 17, 2024
Matt Coyne offers expert advice on selling middle-market companies to PE firms. Topics include what PE firms look for, benefits and concerns of selling to a PE firm, tips on working with them, typical financial structures, and expectations post-sale. The podcast covers nuances between platform and add-on acquisitions, dynamics between strategic and financial buyers, debunking misconceptions about PE firms, role of professional management in PE investments, and the importance of transparency in post-sale communication.
01:00:35
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Private equity firms offer growth opportunities and prefer active ownership participation.
- Deal structures involve equity investments from both buyer and seller, with post-acquisition involvement impacting returns.
Deep dives
Basics of Selling to a Private Equity Firm
Selling to a private equity firm is crucial for business owners making over half a million dollars a year, with two types of acquisitions: platform and add-on. Selling to a platform requires earnings of over 3 million, while add-ons involve businesses making down to half a million. Private equity groups aim to grow bought businesses and look for strategic fits or add-on acquisitions. Around 75% of deals are sold to PE firms due to their active buying nature and focus on growth.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.