Join us on Wednesday November 20th from 4:30pm – 6:00pm to get a better understanding of how private equity is impacting the lower middle market and what you need to consider when selling your business to private equity. We have a limited number of in-person seats and will be broadcasting online to those unable to join us.
Private Equity
As business owners and entrepreneurs look to create personal liquidity, private equity has become an important part of the small business framework over the last couple of decades.
As you, the successful business owners, have forged ahead through peaks and valleys to create more success for yourselves, the number of potential buyers for your companies has dwindled – after all few individuals can afford to write a $10 million check or more.
Yet, there is a MASSIVE pool of capital in the market looking to acquire lower and middle market businesses.
In the lower middle market space (traditionally defined as revenue between $5 million and $50 million), there are 4 primary types of buyers: Private Equity, Family Office, Corporate/Strategic, and high net worth individuals.
There are statistics stating 70% of lower middle market companies will change hands over the next decade. This can be a strong source of returns for private equity funds who are looking to create platform companies.
We want to dive deeper into where things stand today – and more importantly where do they look like they will be going in the coming years.
In this edition of our monthly series, we will address:
- Steps to professionalize your business to prepare for engagement with private equity.
- How to negotiate an attractive valuation
- Can you or should you consider selling a minority stake versus given up total control
- How does the current interest rate environment impact private equity investment activity
- Where are the most attractive sub sectors within the lower middle market private equity world?
- What does the backlog of private equity and venture deals waiting to go public mean for valuations across the lower middle market space?
- Are you big enough to fill the role of platform company or would you be more classified as a rollup opportunity?
About the Speaker
GEM is a leading Outsourced Investment Office here in Charlotte. They deliver a sophisticated, endowment style investment program to institutions with a perpetual horizon. As such they work closely with private equity, venture capital, private real estate, and private credit to create targeted alternative investments programs and impact focused strategies.
Through their lens of working with many different private capital solutions, we look to gain a better understanding of how the private capital currently is viewing the next 5-10 years and how their view will help you when you’re selling your business to private equity.
