Is Private Equity the Right Solution for Your Exit?

Private Equity Groups (PEGs) are disciplined buyers of lower middle-market companies. Most have cash funds and lender relationships in place for the right acquisition opportunities.

PEGs often recapitalize a company, where they purchase a majority or minority interest. They bring growth capital and business acumen to unleash the company’s full potential. A recapitalization gives the owner substantial liquidity now, and a second hopefully larger bite of the apple in 3-7 years. PEGs can also be a capital solution for family succession and management buyouts, often giving equity opportunities to key managers.

One common PEG strategy is to acquire a “platform” company and grow it through complementary “add-on” acquisitions. If your company has $10 million+ revenue, strong profitability and a capable and committed management team, it may make a good platform acquisition for the right PE firm. Add-on acquisitions can be smaller in size.

According to PitchBook Data, about 4,000 PE deals are completed annually in the U.S.  Exit Strategies’ PEG database includes over 3,000 PE firms.

All private equity groups are NOT created equal!

Over the years, from past sale engagements and through groups like ACG and M&A Source, Exit Strategies has developed relationships with hundreds of PE firms. We know their target markets, investment criteria and modus operandi. Exit Strategies can introduce you to appropriate PEGs and strategic buyers when we take your company to market. They are familiar with our structured M&A sale process. We can also present a company (without identifying it) to appropriate PEGs, to gauge demand and get valuable feedback, and possibly even sell, before going to the general market.

PARTIAL list of PEGs that Exit Strategies has personally met with in the past year:

  • Azalea Capital
    Audax Group
    B12 Capital Partners
    Bounds Equity Partners
    Brass Ring Capital
    Bunker Hill Capital
    C3 Capital
    Capital Alignment Partners
    Carousel Capital
    Century Park Capital Partners
    ClearLight Partners
    Clover Capital Partners
    Cornerstone Capital
    CVF Capital Partners
    Diamond State Ventures
    Edgewater Funds
    Evolve Capital
  • Excellere Partners
    Fourco Holdings
    Gen Cap America
    Hamilton Robinson Capital
    Hanover Partners
    Harbour Group
    Harren Equity Partners
    High Road Equity Partners
    Huron Capital
    Incline Equity Partners
    Insight Equity
    KCB Private Equity
    KLH Capital
    Lead Capital Partners
    Long Trail Holdings
    Main Street Capital Corp
    Midwest Growth Partners
  • Mosaic Capital Partners
    Plexus Capital
    PNC Mezzanine Capital
    Prospect Partners
    Pulte Capital Partners
    Rock Hill Capital
    Rockwood Equity Partners
    RPS Holdings
    Salt Creek Capital
    TGP Investments
    Tonka Bay Equity Partners
    Tregaron Capital
    Trinity Hunt Partners
    Union Capital Associates
    Watermill Group

Don’t hesitate to contact an Exit Strategies M&A advisor to discuss private equity activity in your industry and whether your company is a strong PE platform or add-on acquisition candidate, or whether a sale to or recapitalization with a private equity group would be appropriate for your circumstances and objectives. Al Statz is the founder and president of Exit Strategies Group. He is based in ESGI’s Sonoma County California office. Contact Al at 707-781-8580 or