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Private Equity Investors Say Professional Advice is Essential in Selling Your Business

By Generational Equity

Time Business

Private equity investors have plenty of money on hand to invest. According to a recent Bloomberg report, they are sitting on a record nearly $1 trillion in what is called “dry powder”, money raised but not yet invested. What they don’t have is surplus time to deal with firms that are not serious and prepared for the sales process.

Many private equity firms are interested in investing in privately owned firms in the lower middle market. In fact, according to a recent survey by PitchBook, close to $119 billion was invested by private equity firms in the first quarter of 2017 alone.

“Nearly 50% of those deals were valued below $25 million; evidence of the interest private equity has in lower middle-market businesses,” says Terry Johnson, Chief Revenue and Strategy Officer at Generational Equity.

“But getting and keeping their attention requires more than placing a for sale sign on your business. First of all, you have to have a relationship with them and then be able to speak their language in all your documentation.”

“The confidential information memorandum that Generational Equity puts together is a great accelerator of the process,” says James Shorin of Horizon Holdings, whose firm has invested in Generational Equity clients.

“It is a great way to get up to speed very quickly on the business and key areas that we’re going to be looking at.”

The issue of time is critical to PE firms. “The private equity industry is sort of a strange industry in the sense that our scarce resource is not capital, it is actually time,” says Michael Pfeffer, Managing Director with Post Capital Partners in New York.

“Our clients receive a range of tailored services designed to attract the best and largest pool of potential buyers. We provide the precise detailed financial information and other data sophisticated buyers require to close a deal,” says Johnson. “Through our comprehensive exit planning process, we help clients understand and unlock the potential value of their business – applying Wall Street methodologies private equity groups require.”

While entrepreneurs are successful business owners, most will have little or no experience selling their businesses. Private equity investors know they have a better chance of closing a deal in a reasonable timeframe if experienced professionals are guiding business owners during the process.

“I assume you would not engage [Generational Equity] unless you felt it was going to go to the end line,” said Shorin. “And it is a big help to us to have that. That is a confidence booster in the process.”

“Having Generational Equity as the mediator in this whole process was, in my mind, kind of the glue. It’s what held this deal together,” said Anthony Haines, whose company acquired a business represented by Generational Equity. “Absolutely, I would buy another company from Generational Equity.”

“One of the major benefits we provide is getting our clients in front of buyers that they wouldn’t normally have access to, and PE firms are a perfect example of this,” said Johnson.

He added, “Any business owner interested in learning more about how private equity buyers operate and how deals are structured should attend a Generational Equity exit planning conference. We hold these highly educational, complimentary meetings throughout North America to equip business owners with vital information about exit strategies.”

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Thanks again Phil and feel free to have a future client call me if they would like a referral. You are a true professional!
Andy Graham, Vice President, Modern Heating & Plumbing
Thank you again for all your guidance and support. Any company will achieve what they intend, if they have you on their team!
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.
Ralph Noblin, President of Noblin & Associates
Generational Equity’s assistance was invaluable in compiling and marketing our business.
Bil MacLeslie, CEO, ipHouse
We are extremely pleased with the way Generational Equity handled the sale of our company. Your associates, Tom and Chris, did an outstanding job of getting us (me) through the process.
Michael J Polarek, President, Paragon Packaging
I wanted to write you a quick letter to express our appreciation and our delight on the outcome of helping us through the process of our recent sale. We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Terry D. Wickman, President, Keytroller
The help you provided us during each step of this process made us feel very comfortable and confident we were selecting the right approach to transition our Company.
Andy Graham, Vice President, Modern Heating & Plumbing
Greetings Mike. Thank you for the captivating and compelling presentation you made at the Phoenix presentation last week. Over many years in business yours was the most informative and well-presented presentation, on any subject, that I have ever attended! Your energy and enthusiasm combined with your concise and captivating support of your positions with easily understood examples and data was compelling.
Pete L.
Bruce and I wanted to take this opportunity to thank Generational Equity for assigning Musa Jagne to our transaction. In Bruce’s words, “Musa did one hell of a job for us!”
Karen S. Williams, CFO, BW Manufacturing
We thank you Eric and Generational Equity making our dream come true.
Larry Moore, Owner, A Company Portable Restrooms
We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
I must say that I have never worked with a more driven, competent and focused individual as Don Ho.
Jay Dinnison, Owner of Sharpe Mixers
I quickly recognized that Don was working for Sharpe Mixers above all else, and held our interests above others.
Jay Dinnison, Owner of Sharpe Mixers
We knew it would be a difficult task to have someone really understand our business and our market, prior to researching a possible buyer, so it was imperative that we found someone of your caliber, with definite proven experience in this area.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
Generational Equity educated and informed us – so that we could be on the upside of a good decision (to sell).
Bil MacLeslie, CEO, ipHouse
We will highly recommend Generational Equity and Musa Jagne to any business owner about to embark on the same process.
Karen S. Williams, CFO, BW Manufacturing
Michael worked tirelessly, He followed every lead meticulously and urgently to make sure nothing was missed.
Robert Evans, President and CEO of Mealtracker Dietary Software
We were happy to see the interest in our company and what we cherished has not just a valuable company but an important company to the communities we served in.
Larry Moore, Owner, A Company Portable Restrooms
Tom Staszak is one of the most professional people I have dealt with in my last forty years of business. You’ve got a great group of people and you have built a truly professional organization.
Michael J Polarek, President, Paragon Packaging
I couldn’t have asked for a better team than Michael and Deborah. We couldn’t have done it without them.
Robert Evans, President and CEO of Mealtracker Dietary Software
The process was much more involved than I expected and your help, experience and advice was a big factor in making the negotiations go as smoothly as possible.
Terry D. Wickman, President, Keytroller
I would like to thank you and your firm, Generational Equity, for being our valued advisors in our journey.
Bil MacLeslie, CEO, ipHouse