Inside the Mind of a Private Equity Acquirer
If you’re looking to sell a small to mid-sized business these days, one of your bidders is likely to be a Private Equity Group (PEG). They have a ton of cash looking to buy well-run companies, but they probably won’t acquire all of your company. A PEG may buy most of your business and ask you to stay on and run it for a while as a minority shareholder.
And that’s where the problems can start for an independent-minded founder if you don’t understand what is motivating a PEG to invest in your company.
This episode gets inside the head of a Private Equity (PE) investor named John Dalton, Managing Partner at Industrial Device Investments who shares his experience as an investor. Dalton started ID Investments after a career with Black & Decker and General Electric and brings his operational savvy to the companies he buys.
In this episode, you’ll learn:
- What PE buyers see when they’re looking at your business
- How PE firms use leverage to maximize their returns
- How PE buyers structure a sale
- How to find the right PE acquirer for your company
- How to spot a PE investment train wreck