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Gavin Gibbons

Home » Should You Target A Trade Sale Or Private Equity Exit?

Should You Target A Trade Sale Or Private Equity Exit?

Making the right decision on your exit route is not a last-minute task…

 

Maximising your company valuation and accelerating your exit depend upon you making smart choices 12-36 months out.

 

Although there are several routes open to departing business owners, many of the companies we work with are best suited to a trade sale or a private equity acquisition.

 

Having seen this play out a number of times, I’d say it depends on two things.

 

→ Is your business MORE VALUABLE to a competitor versus private equity? The answer may or may not be obvious to you already.

 

→ Are there compelling reasons why one route may be UNACCEPTABLE? Perhaps the most likely trade buyer in your sector wants your customers, but not your staff.

 

Private equity firms are of course focused on growth and often promise high multiples. But that’s not to say a trade buyer won’t have highly strategic reasons for paying a premium…

 

 

#nextlevelgrowth #exitlaunchpad #M&A #exit