Everyday MBA

Business Owner's Guide to Selling to Private Equity

Aug 9, 2025
In this insightful discussion, Alexis Sikorsky shares his expertise as an entrepreneur and investor who successfully sold his company for nine figures. He demystifies private equity, addressing common fears and misconceptions among small business owners. Alexis highlights essential strategies for business valuation and aligning sales goals with personal aspirations. He emphasizes the emotional journey of selling, guiding founders through the identity shift post-exit. Listeners can gain three actionable steps to prepare for a strategic sale and maximize their company’s value.
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INSIGHT

Private Equity Is Misunderstood

  • Founders often fear private equity because it's unknown and badly communicated, not because PE aims to fire them.
  • Alexis says firing founders is a headache for PE and not their default objective.
ADVICE

Due Diligence On The Buyer

  • Do perform a diligence on private equity firms by calling people who've sold to them and researching their past deals.
  • Use LinkedIn and transaction lists to find sellers and ask them how the partnership actually went.
INSIGHT

Shift From Owner To Employee

  • Selling to PE means becoming a minority shareholder and effectively an employee with less autonomy.
  • PE operates on a five-to-seven year exit timeline, so long-term plans must align with that horizon.
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