Not everything is about money
I meet with a lot of entrepreneurs and owners about selling their companies. Money is rarely the primary reason.
More often, it’s something like:
➡️ In order to achieve our growth goals, we'd like to explore bringing on a strategic/equity partner.
➡️ We’ve been at this for a while. We’d like to spend more time with family, travel, reward our team members, etc.
➡️ We are running other companies and feel it's the right time to sell.
➡️ Our kids are not involved in the business, nor are they interested in running the business. It’s time we identify the best-fit next owner and begin the transition process.
➡️ The majority of our wealth is tied up in the business and we’d like to manage that risk by taking some chips off the table.
Make no mistake, the economics of a transaction are extremely important and one reason we are hired is to maximize the proceeds our clients will experience in a transaction.
My point here is that a financial windfall is RARELY the primary driver for middle market business owners considering a transaction.
Author: A.J. Krause
INSIGHT:
Everyone talks about the big payday, but let’s be real—money is the easy part of selling a business. The real challenge? Finding the right people to take the wheel.
1️⃣ Who’s Actually Running the Show?
Most founders don’t just want a buyer—they want a good operator. Someone who won’t turn their life’s work into a dumpster fire. PE firms love to buy, but do they have a leader ready to run your business?
2️⃣ One-Size-Fits-None Strategy
Every business is unique, but some buyers slap a generic growth plan onto every deal. Scaling a specialized manufacturing company isn’t the same as growing a SaaS startup. Does your buyer get that?
3️⃣ Optimizing What’s Already There
Buyers love new investments, but what about the goldmine already sitting in your company? The best investors see potential in your existing resources, not just new capital expenditures.
4️⃣ Respecting the Legacy
Founders don’t just want cash; they want to know their work meant something. The right partner understands what you built and won’t gut it for a quick flip.
The Bottom Line?
Selling isn’t just about maximizing price—it’s about making sure your business actually thrives after you leave. Choose wisely.
#MergersAndAcquisitions #PrivateEquity #MiddleMarket
➡️ Mind Your Own Business ⬅️
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