Selling Your Business: Why Private Equity Can Be The Best Buyer

This article originally appeared in Transaction Advisors. 

Too often private equity firms are criticized as money-grubbing corporate raiders that buy businesses, leverage them to the hilt, fire employees, break up different operating units and sell off crown jewel assets -- all for a profit. The deals that are covered by the public press are frequently skewed toward the billion dollar plus public company “take private” transactions involving the mega-buyout funds. Rarely are private equity firms that specialize in buying and growing companies in the middle market covered. This article addresses the circumstances under which a private equity fund can be the best buyer for a middle market business and the key terms and considerations that a seller should expect from a private equity fund buyer in that market.