Selling to Private Equity

by a searcher

11 months ago

Hi all. 

I have a question regarding roll up strategies: Is there value in simply buying 10 or more companies and then selling to private equity without having made operational improvements or implemented any standard systems. For example if I acquired ten Plumbing buisnesses each achieving $2M in EBITDA, would Prive Equity firms be interested, or would they only be interested if the businesses had similar operations and have had efficiencies implemented?

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searcher from University of San Diego

The simple answer is private equity is diverse. Youll find 2 types of buyers - Opportunistic and Core. Know you would be selling to opportunistic, which will lead to a lower valuation than you may like, but still a takeout is a takeout,

11 months ago | like reply | 0 likes

searcher from Brigham Young University

Following

11 months ago | like reply | 0 likes

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