What it is
Being courted by private equity means an investment firm has shown interest in acquiring all or part of your company. That interest may arrive as a phone call, an email, an introduction through a banker, or a formal written expression of interest. It can feel flattering and urgent at the same time.
Business exit planning is the broader process of deciding what you want from leaving, or partly leaving, the business you built. It looks at your personal goals, your company's readiness, the options available, and how each option may fit your priorities.
An independent read is a view from someone who is not the party making the offer. The idea is to understand the offer in context, including how it compares with other exit paths such as a strategic sale, management buyout, ESOP or family succession, before you decide how to respond.
How it’s traditionally been approached
Traditionally, many owners who receive an unsolicited approach have taken time to gather information before engaging. They often start by learning who the firm is, how it generally works with owners, and what kind of transaction it may be proposing, such as a full sale or a partial investment where the owner keeps some ownership.
Owners have also commonly brought in outside professionals, such as an M&A or sell-side advisor, an attorney, and a CPA, to help them think through structure, tax considerations and the terms of any letter of intent. Some owners choose to run a broader process to see what other interest exists, while others work with a single party.
Deal structure is another area owners have historically studied closely. Elements such as how payment is delivered, whether part of the proceeds is deferred or tied to future performance, whether the owner stays on in a role, and how decisions are made after closing can all shape the experience. Due diligence, the buyer's detailed review of the company, is also something owners have often prepared for in advance.
How the right exit advisor may help
The right exit advisor may help you slow the conversation down. A first visit is often a listening session in which the advisor asks about your goals, your timing, your role after a transaction, your team, and what a good outcome would look like to you and your family.
An advisor may also help you understand how private equity interest generally works, walk through the qualitative factors that tend to influence how buyers view a business, and explain common deal structure concepts in plain language. Some advisors can help you prepare for due diligence so fewer surprises come up later. No advisor can promise buyer interest, terms or a timeline.
Good questions to ask include: What is your experience with owners in situations like mine? How are you compensated, and could that affect your advice? Are you independent of any buyer? Which parts of this would you want my attorney, CPA and financial advisor to review? The directory lists independent advisors who are responsible for their own licensing, so it is wise to verify credentials yourself.
The bigger picture
Hearing from a buyer can stir up strong feelings, including excitement, pride, anxiety and doubt about whether the time is right. A business is often tied to identity, relationships and a sense of purpose, so a decision about it rarely feels purely financial. Giving yourself room to think can support your peace of mind.
It can help to consider how a transaction might affect your finances, your family, your daily routine and your sense of meaning afterward. If you are looking for support for your own wellbeing during a big transition, resources such as Providers.plus may be worth exploring. Neither choice, moving forward or waiting, is wrong in itself. The aim is a decision that fits your life.
Keep in mind
- An approach from a private equity firm is an invitation to learn more, not an obligation to respond on anyone's timetable.
- Every exit option, from a strategic sale to a private equity deal, an ESOP, a management buyout, family succession or an IPO, has its own trade-offs, and which fits depends on your goals.
- Nothing on this page is legal, tax or investment advice. Confirm any decision with your own licensed attorney, CPA or financial advisor.
- The Post-Exit Playbook is an independent directory. It does not vouch for any individual advisor's qualifications, so do your own checking.
Exit advisors who often help
Get matched privatelyFrequently asked questions
What should I do first when a private equity firm contacts me about buying my business?
Take a breath and gather information before committing to anything. Many owners learn about the firm, clarify their own goals, and consider speaking with an independent advisor, attorney and CPA before sharing financial details. Responding is optional, and you can decide the pace.
How can business exit planning help before I respond to an offer?
Business exit planning can help you define what you want from an exit before you react to someone else's terms. It may clarify your goals, timing and alternatives, so you can judge an offer against your priorities rather than only against the offer itself.
Why get an independent read on a private equity offer?
An independent read gives you a perspective from someone who is not on the other side of the table. An advisor may help you understand the structure, ask better questions and consider alternatives. It is a possible benefit, not a guarantee of any outcome.
Is private equity the only way to sell my business?
No. Owners may also consider a strategic sale, a management buyout, an ESOP, family succession, or in rare cases an IPO. Each works differently and suits different goals, so many owners compare them before choosing a direction.
What is due diligence, and can I prepare for it?
Due diligence is the detailed review a buyer performs on a company's finances, operations, contracts and other areas. Owners often prepare by organizing records and identifying issues early. An advisor who offers due diligence preparation may help you approach it in an organized way.
How do I find an independent exit advisor?
You can browse the directory to find independent advisors who work with owners facing private equity interest, such as those offering sale advisory, deal structure advisory or due diligence preparation. Advisors are responsible for their own licensing, so verify credentials and ask how they are paid before engaging.
Educational resource. The Post-Exit Playbook shares general information and connects people with independent exit advisors. It is not professional advice. Talk with a qualified professional about your own situation.