Top 10 Valuation Factors for Private Equity
When you're considering selling to a private equity firm or family office, it helps to sit on the other side of the table. These buyers value the softer qualities of a business, but their decisions are highly analytical and centered on two things: growth potential and risk.
Remember that their model is different from yours. Their real customers are the investors in their fund—people they've promised strong returns. They're investors, not operators, which is why they lean on portfolio leadership for operational excellence.
If they like what they see, the offer comes as a multiple of EBITDA—and where you land comes down to ten key factors you can start grading yourself on today.
7 Big Steps on the Path to Selling Your Company
Selling your company is far more complex than selling most other assets. Buyers are making an investment, betting on a future return—and judging your company's ability to deliver it is no small task.
The process unfolds across seven stages: preparing the business, planning the approach, developing marketing materials, going to market, selecting a buyer, due diligence, and closing. Each one has its own nuances, its own pressures, and its own opportunities to protect or grow your value.
The thread running through all of it is timing and preparation. The earlier you start, the more room you have to strengthen the company before buyers ever see it.
Read on for a practical walk-through of all seven steps...
Assembling a Team to Help You Sell Your Company
Just as building and running a successful company is a team effort, so is preparing for and executing its sale. Surround yourself with experienced specialists who understand their respective roles and work well together.