FOUNDER RESOURCES
Sell My Business to Private Equity:
A Founder’s Guide (2026)
If you’re asking whether you should sell your business to private equity, you’re not alone. For many founders, this is one of the most important financial and personal decisions they’ll ever make — and often one they only face once.
Understanding how the private equity process works can help remove uncertainty and give you clarity before engaging in serious conversations.
Selling a business to private equity typically follows a clear process — from an initial conversation through valuation, diligence, and closing.
This guide walks through each step so you know what to expect before engaging in serious discussions.
How to Sell Your Business to Private Equity
Selling your business to private equity is not a single event — it is a structured process that typically unfolds over several months. For founders, understanding how this process works before engaging with buyers can reduce uncertainty and lead to better outcomes.
The process usually begins with an initial conversation to determine fit. At this stage, private equity firms are evaluating your business model, margins, growth opportunities, and whether your goals align with their investment approach. For founders, this is also the moment to assess whether a buyer understands your industry, values your team, and can support the business after closing.
If there is mutual interest, the next step is a high-level review of financials, operations, and market position. This leads to an indication of interest outlining valuation ranges, deal structure, and expected timelines. Importantly, selling your business to private equity does not always mean walking away. Many founders choose to retain meaningful equity, continue operating the business, or transition gradually over time.
Diligence follows, where financials, legal matters, and operations are reviewed in more detail. This phase often determines how smooth — or stressful — the transaction becomes. Founders who prepare early, understand how buyers think, and know which issues matter most tend to experience faster, cleaner processes.
Ultimately, the best outcomes occur when founders understand their options, set realistic expectations, and choose partners based not only on price, but on alignment, trust, and long-term vision. This guide is designed to help you approach that decision with clarity and confidence.
What This Guide Covers When Selling to Private Equity
This is not a generic “how to sell a business” article. It’s a practical, founder-friendly walkthrough of how lower middle-market transactions actually work — designed to help you avoid surprises and understand key trade-offs before speaking with buyers.
Many founders also want to understand what happens after a transaction, including how we create value post-close through operational support, acquisitions, and leadership support.
The sections below address the most common questions founders have when considering a private equity transaction.
- Business valuation fundamentals (and common myths)
- Full sale vs. majority recap vs. minority investment
- How rollover equity really works
- What buyers diligence — and what actually matters
- Common red flags that hurt value
- How to prepare 12–36 months before a transaction
Preparing your business for sale often starts with clearer financials, stronger operations, and a well-defined growth plan.
What's Inside
Valuation & Deal Structures
Understand how buyers think about EBITDA, multiples, earn-outs, rollovers, and risk — in plain English.
Founder Trade-Offs
Learn how to think about control, liquidity, timing, and your role after a transaction.
What Buyers Actually Look For
Operational, financial, and leadership factors that materially impact value and deal certainty.
Why This Guide Is Different
Written From a Founder’s Perspective
This is not a generic “how to sell a business” article. It’s a practical, founder-friendly walkthrough of how transactions actually work in the lower middle market — written to help you avoid surprises, understand trade-offs, and prepare well before you talk to buyers.
- Practical, not theoretical
- Focused on lower middle-market businesses
- Explains options — not just outcomes
- Designed to help you think, not rush
Exit planning is about deciding when to sell, how much liquidity you want, and what role you want to play after a transaction.
This guide helps founders think through those decisions before sharing information broadly.
Common Questions Founders Ask
About Selling to Private Equity
Should I sell my entire business to private equity?
Not necessarily. Many founders choose majority recapitalizations or minority investments that provide liquidity while allowing continued ownership and involvement.
How long does it take to sell a business to private equity?
Most transactions take 4–9 months depending on preparation, diligence complexity, and alignment between buyer and seller.
Will private equity replace my management team?
In founder-led businesses, buyers often prioritize continuity and may support leadership with additional resources rather than replacing teams.
Download The Guide
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Before going deeper, some founders find it helpful to review our investment criteria to quickly assess whether a private equity partnership is likely to be a fit.