What Private Equity Buyers Really Want in a Business

About the Episode

Your business might be a diamond in the rough for the right investor. Learn how private equity firms identify operational gaps and the specific steps you can take to double your value before hitting the market.

If you’re gonna sell a business at some point, start preparing probably somewhere between 12 to 24 months ahead of time. The return on that effort is really, really high.

Eric Wiklendt

What You’ll Learn

• Maximize Value with a Fix and Build Strategy: Understand how professional investors use a two-phase approach to first stabilize operations and then accelerate growth through strategic acquisitions.
• The Power of Low Leverage: Discover why keeping your debt-to-equity ratio low during a transition prevents fighting a war on two fronts and gives your business the wiggle room to survive market shifts.
• Identify Your “Bureaucratic Inertia”: Learn why businesses earning between $100 million and $500 million are the sweet spot for buyers because they have enough structure to scale but aren’t yet slowed down by too many management layers.
• Prepare Your Exit 24 Months Early: Get actionable advice on why you must start cleaning up your financials and operational processes two years before you intend to sell to ensure a smooth due diligence process.
• Private Equity’s “Shot Clock” Mentality: Gain insight into the private equity mindset, where investors operate on a five-year timeline to return capital, and how you can align your goals with theirs for a faster, more profitable exit.

Topics Covered

Want More? Related Resources:

• EBITDA | Definition, Formula & Example – A Complete Guide
• The Role of Family Offices in M&A
• Negotiating an M&A Purchase Agreement | M&A Tips

Meet Our Guest

Eric Wiklendt

Managing Director at Speyside Equity

Eric Wiklendt is a Managing Director at Speyside Equity, where he is responsible for sourcing, executing, managing, and exiting investments. Eric has previously held senior leadership and operational roles, and he currently serves on the Boards of several portfolio companies.

LinkedIn: https://www.linkedin.com/company/speyside-equity/