June 1, 2025
Private equity is often met with scepticism by business owners who worry it will disrupt their company’s direction and values. For many, the biggest fear is that it might lead to job cuts, restructuring, or a shift in culture that feels like a betrayal of everything they’ve built. Yet despite these concerns, private equity is playing an increasingly prominent role for privately held companies – and for good reason. With over $2.5 trillion in dry powder, these firms are actively seeking profitable businesses to invest in.
We recently caught up with one of our former clients whose business we sold six years ago to a private equity group. At the time, our client was 45 years old and ran a service business that was 100% owned by his 69-year- old father. The father was ready to retire, and the son didn’t have the capital to buy him out. Lingering family dynamics also made it clear that selling the business would be the healthiest step forward for both their relationship and the company’s future.
We generated strong interest in the company, receiving 49 bids from a mix of financial and strategic buyers. After vetting the bidders, we selected the 10 most qualified groups for our client and kept the remaining bidders warm. From these meetings, we received seven letters of intent, giving our client the pick of the litter. They ultimately signed under exclusivity and later closed with a private equity group based in Canada. It was the buyer’s first acquisition in our client’s industry, making the business their new platform for future growth. The father was able to fully retire, and the son was properly incentivized with ownership in the new organization.
Our client shared that his key reason for choosing this private equity group was their overall attitude. In the meetings, most buyers focused on telling him how they would grow the business, while this group showed genuine interest in his vision for growth. The result was a highly successful partnership – together they grew the business from $6 million to $26 million in revenue over five years, at which point they sold a controlling interest to an international conglomerate.
Reflecting on the experience, our client couldn’t say enough good things about the private equity group, “I’ve heard negative stories about private equity, and I experienced the opposite – it was a true partnership, and we were in sync throughout our time together.” Best of all, the sale of the company allowed the father and son to rebuild their relationship.