Does anyone have experience with sell-side advisory targeting a PE buyer?

November 18, 2024

by a searcher from Virginia Polytechnic Institute and State University (Virginia Tech) in Winchester, VA 22601, USA

Hey Searchfunder,

I am working with an Owner/Operator being approached by various players in his space seeking to acquire their business. There is loads of info out there on buy-side affordability, but sell-side info is a bit more sparse.

We are looking for a conversation around valuation methodologies/sale strategy all the way up to paid sell-side advisory.

High level details: Major metro market, >50% recurring revenue, ###-###-#### 5M EBIDTA. Multiple indications of interest. Off-market but considering sale.

Thanks,
Ivan

Reply by an intermediary
from Naval Postgraduate School in Bellevue, WA, USA

My sell-side M&A Advisory firm has executed a number of transactions with PE buyers. Since we do a lot of analysis and are very knowledgeable about our client prior to engaging with a potential PE buyer, we have found that most PE's are fairly easy to work with because they respect our knowledge of the company and market valuations.

Reply by an intermediary
from The University of Chicago in Chicago, IL, USA

I have sold many businesses to PE, strategic and Family Offices. I also to "Transaction Valuation". Most of my deals are sold to #2 buyer! Yes, #2 Buyer. Few times I have asked the buyer to lower the offer, of course after seller approval, Each time, seller came out ahead. Happy to work with you. Please DM me.

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