Business owners who want to sell their company, or grow by acquisition, should consider the potential benefits of selling to or partnering with a private equity firm.
Such benefits may include one or more of the following, especially in connection with a platform acquisition:
- Business owners receive an upfront cash payment, allowing them to take some “chips off the table”
- Management team and outside professional advisors remain in place
- To facilitate growth, the private equity firm helps with add-on acquisitions and shares expertise, contacts and other resources
- Business owners retain some equity in the company, providing them a potential “second bite of the apple” when the private equity firm later divests (liquidity event)
Private equity firms also bring committed capital, access to financing, and transactional experience and know-how to the table. Their deals often close quicker than acquisitions by other buyers.
Learn how HSC helps owners achieve their exit and strategic growth objectives.