Transaction Insight and Market Perspective

Private equity firms do not buy businesses the way founders sell them. Understanding this difference is critical for any owner considering a transaction.

Buyers focus first on earnings quality. Adjusted EBITDA must be defensible, repeatable, and supported by operational reality. Aggressive add-backs, inconsistent accounting, or unexplained margin swings raise immediate concerns and often lead to valuation pressure.

Next, buyers assess founder dependence. Businesses that rely heavily on the owner for sales, operations, or key relationships are perceived as higher risk. This does not make them unsellable—but it does affect structure, valuation, and required post-close commitments.

Growth visibility also matters more than projections. Buyers place greater weight on historical execution, backlog, recurring revenue, and unit economics than on aspirational forecasts. Credibility is earned through evidence, not optimism.

Finally, private equity firms evaluate alignment. Management incentives, governance rights, and cultural fit influence whether a transaction creates long-term value or post-close friction.

Founders who understand these lenses can position their businesses more effectively—and negotiate from a position of clarity rather than surprise.