The Private Equity Trap
“Brent Beshore runs a company called Permanent Equity, a financial buyer that is an alternative to private equity. Their hold period is much longer, and they work to minimize their debt exposure,” explains Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “Brent talks about how business owners can build their wealth without sacrificing their values. He also covers protecting your employees through the sale process.”
Private equity firms are the most likely buyers for your business—and some do a fine job preserving what makes a company great. But many are financial engineers. They offer a generous multiple, then lever up the business, cut costs, and flip it within a few years. Longtime employees get let go. Culture erodes. You walk away with a check, but it can feel like selling out.
In this edition of Built to Sell Radio, Brent Beshore offers an alternative. He started as a business owner—not a banker—and now runs Permanent Equity, a firm that buys companies using 30-year capital. No debt. No flip. No rush.
You discover how to:
- Identify buyers who want your business to endure
- Avoid the acquirers who see your company as a spreadsheet
- Structure an earn-out alternative using rollover equity
- Stay on post-sale—without becoming a figurehead
- Protect your employees through the sale process
- Position your company for a buyer who values culture
- Build wealth without sacrificing your values
This episode is part of our Inside the Mind of an Acquirer series, designed to help you punch above your weight in a negotiation to sell your business.