How to Attract Private Equity to Buy Your Business: 2026 Positioning & Preparation Playbook

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Christoph Totter · Managing Partner, CT Acquisitions

20+ home services M&A transactions across HVAC, plumbing, pest control, roofing · Updated April 30, 2026

“How do I attract private equity to buy my business?” is one of the most common questions owners ask once they decide to explore a sale. And it’s usually framed wrong. PE firms don’t need to be ‘attracted’ in the marketing sense. They’re actively deploying $1.5T+ of dry powder into the lower middle market right now, and they have armies of business development analysts cold-outreaching to owners every week. The right question isn’t ‘how do I get on their radar’ — it’s ‘how do I become the kind of business they’ll pay a premium for once they look at me.’

This guide is the playbook for becoming attractive. We’ll walk through the platform-quality criteria PE buyers actually look for, the 12-24 month preparation work that moves a business from ‘maybe’ to ‘competitive bidder territory,’ and the positioning strategies that work for different PE buyer types (platform vs add-on, sector specialist vs generalist, growth vs value).

The framework comes from CT Acquisitions’ direct work with 76 active U.S. lower middle market buyers and ongoing conversations with hundreds of LMM owners considering PE sales. We’re a buy-side partner. The buyers pay us when a deal closes — not you. We don’t just describe what PE looks for; we work directly with the 76 firms in our network and can tell you exactly which ones are realistic buyers for your specific business once it’s prepared. That’s a different conversation than ‘list of PE firms in your industry’ or generic positioning advice.

One important framing before we start. ‘Attracting PE’ is not the same as ‘being acquired by PE.’ Most owners who attract PE interest end up either selling at a premium, walking away with deeper market intelligence, or using the conversations to inform a different exit path (strategic sale, ESOP, recapitalization). The goal of this playbook isn’t to push you toward a PE sale — it’s to put you in a position where the choice is yours.

“PE firms don’t buy businesses. They buy investment theses dressed up as businesses. The owners who attract premium offers are the ones who learn the thesis and engineer the business to fit it — not the ones who hope a buyer will see past the gaps.”

TL;DR — the 90-second brief

  • Private equity firms don’t buy businesses based on what owners are selling — they buy based on what fits their investment thesis. The owners who attract real PE interest are the ones who reverse-engineer the buyer’s thesis and position the business to fit it. The owners who don’t end up either ignored or low-balled.
  • Platform-quality criteria PE buyers actually look for: $2-3M+ EBITDA (platform threshold), recurring or contracted revenue 30%+, defensible market position, scalable operations independent of owner, clean financial reporting that survives QoE, growth 5-15% with clear path to continued growth, customer concentration under 15-20%, management depth beyond owner.
  • The 12-24 month preparation playbook: close the customer concentration gap, build out the COO/sales VP/controller layer, upgrade financial reporting to monthly closes within 10 days plus reviewed financials, document operational processes, run a sell-side QoE 6 months pre-market, build a credible 3-year growth plan that supports the buyer’s underwriting.
  • Two PE buyer modes to understand: platform investors want $3-15M EBITDA with strong management and growth runway (highest multiples). Add-on investors buy $500k-$3M EBITDA targets to bolt onto existing platforms (lower multiples but faster close, less owner-stay required). Different positioning for each.
  • The biggest mistake most owners make: trying to attract PE without first becoming attractive. Going to market with customer concentration over 30%, owner-dependent operations, compiled financials, and lumpy growth produces either no PE interest or 30-50% lower multiples than fixing the gaps first.
  • Attracting PE buyers requires positioning the business the way PE underwrites — recurring revenue, customer concentration, management depth, growth pattern. We’re a buy-side partner working with 76+ buyers including lower middle-market PE platforms and family offices with PE-style theses — we package businesses to match each buyer’s investment criteria. Buyers pay us, not you, no contract required.

Key Takeaways

  • PE firms buy investment theses, not businesses. Reverse-engineer the thesis, then engineer the business to fit it.
  • Platform-quality criteria: $2-3M+ EBITDA, recurring revenue 30%+, defensible position, scalable ops, clean QoE-ready financials, 5-15% growth, low concentration, management depth.
  • The 12-24 month preparation playbook closes the gaps that cause PE buyers to either pass or low-ball. Each gap closed is typically worth 0.5-1.5x EBITDA in multiple uplift.
  • Platform investors want $3-15M EBITDA with strong management and growth. Add-on investors want $500k-$3M EBITDA to bolt onto existing platforms. Different positioning for each.
  • PE buyers in 2026 are particularly active in 11 specific sectors (manufacturing 50%, electrical 40%, HVAC 36%, distribution 34%, plumbing/home services 29% each). Sector matters as much as preparation.
  • The single best signal of PE-readiness is whether the business can run at 90% capacity during a 30-day owner vacation. If yes, you’re a competitive PE target. If no, you’re a 12-24 month preparation project.

What private equity actually buys (and how that drives positioning)

PE firms don’t buy businesses for the same reason strategic acquirers do. Strategics buy for synergies, market position, capability acquisition, customer access. PE firms buy for return on invested capital. Their thesis: buy a business at 6-9x EBITDA, grow EBITDA 50-100% over 3-7 years through operational improvements and add-on acquisitions, sell at 8-11x EBITDA. The math has to work for the fund’s LPs — typically 2-3x money multiple and 18-25% IRR.

What this means for positioning: PE buyers care intensely about whether your business can grow EBITDA 50-100% under their ownership. If the answer is yes (clear path, untapped levers, scalable model), you’re attractive. If the answer is no (mature market, top of lifecycle, owner-driven), you’re less attractive even if your current EBITDA is strong. Position your business not as ‘here’s what we are today’ but as ‘here’s the platform that compounds over the next 5-7 years.’

The two main PE buyer modes: platform investments (buy a $3-15M EBITDA business as the foundation of a sector roll-up, hold 5-7 years, add 5-15 acquisitions, exit at meaningfully higher EBITDA and multiple) vs add-on investments (buy a $500k-$3M EBITDA business to bolt onto an existing platform, integrate within 12-24 months, exit as part of the platform). Different criteria for each — we’ll cover both.

The third mode worth knowing: recapitalizations. PE buys 50-80% of your equity, you keep 20-50% and operating control, the firm provides growth capital and expertise, you participate in the second-bite return when the firm exits. Recaps are increasingly common for owners who want significant liquidity but aren’t ready to step away entirely. The criteria overlap with platform investments but the negotiation dynamics are different.

Platform-quality criteria: what PE buyers actually look for

PE buyers run every potential acquisition through a checklist of platform-quality criteria. Some firms publish their criteria publicly; most don’t. Across the 76 active LMM PE firms in our network, the criteria converge on roughly the same eight elements. If your business hits 6-7 of them, you’re a competitive platform target. If you hit 4-5, you’re an add-on candidate. Below 4, you’re unlikely to attract serious PE interest until the gaps are closed.

The eight elements: EBITDA size and growth, recurring revenue percentage, defensibility, scalability, financial reporting quality, customer concentration, management depth, and sector positioning. We’ll walk through each.

Platform-quality criterionThresholdWhat PE buyers testWeight in decision
EBITDA size + growth$2-3M+ EBITDA, 5-15% growthTTM EBITDA verified by QoE; 3-year revenue CAGR; growth sustainabilityHighest
Recurring or contracted revenue30%+ recurringSubscription % or contracted multi-year revenue; auto-renewal termsHighest
Defensibility / moatClear competitive advantageCustomer LTV, brand strength, switching costs, network effects, regulatory barriersHigh
Scalability of operationsOperates without owner; documented processesOwner’s daily involvement; replicability; unit economics at scaleHigh
Financial reporting qualityReviewed or audited; monthly close in 10 daysQoE survival; consistency; system maturity; CFO/controller depthHigh
Customer concentrationNo single customer over 15-20%Top 5 customer % of revenue; contract length; tenure; redundant relationshipsHigh
Management depthFunctional VP layer beneath ownerCOO/ops VP, sales VP, controller/CFO; ability to run without ownerMedium-High
Sector positioningActive LMM PE roll-up sectorPE deployment data; comparable transactions; sector trajectoryMedium-High
Buyer typeCash at closeRollover equityExclusivityBest fit for
Strategic acquirerHigh (40–60%+)Low (0–10%)60–90 daysSellers who want a clean exit; competitor or upstream consolidator
PE platformMedium (60–80%)Medium (15–25%)60–120 daysSellers willing to hold rollover for the second sale; bigger deals
PE add-onHigher (70–85%)Low–Medium (10–20%)45–90 daysSellers folding into existing platform; faster process
Search fund / ETAMedium (50–70%)High (20–40%)90–180 daysLegacy-conscious sellers wanting an owner-operator successor
Independent sponsorMedium (55–75%)Medium (15–30%)60–120 daysSellers OK with deal-by-deal capital and longer financing closes
Different buyer types structure LOIs differently because their economics differ. A search fund’s earnout-heavy 50% cash deal looks worse than a strategic’s 60% cash deal—but the search fund’s rollover often pays back at multiples in 5-7 years.

EBITDA size and growth: the threshold that opens the door

$2-3M EBITDA is the typical platform threshold for LMM PE. Below $2M, you’re primarily an add-on target (PE buys you to bolt onto an existing platform). Above $3M, you’re a credible platform candidate (PE buys you as the foundation of a roll-up). Above $5M, you’re in the LMM sweet spot where most active PE capital is competing. Above $15M, you transition into middle-market territory with broader buyer pools.

Growth rate matters as much as size: 5-15% annual revenue growth is the ‘healthy steady state’ range PE prefers. Above 15-20%, buyers scrutinize sustainability (is this a one-time bump?). Below 5%, buyers worry the business is at the top of its lifecycle and the EBITDA growth thesis won’t hold. Flat or declining: most PE platforms won’t buy at all; you’d be looking at distressed-focused funds at significant discounts.

If you’re below the $2M EBITDA threshold: two paths. Path A: grow into the threshold over 18-36 months, then go to market as a platform candidate. Path B: position as an add-on target for an existing platform, accept the lower multiple, but close faster (60-120 days vs 9-12 months) and with less prep work required. Both paths are valid; the choice depends on your timeline and risk tolerance.

If you’re above the threshold but flat or declining: stabilize before going to market. PE buyers heavily discount declining businesses or refuse them entirely. One year of stabilization can shift the multiple by 1-2x EBITDA. Two years of re-acceleration can shift it by 2-3x. The math almost always favors fixing growth first.

Recurring or contracted revenue: the multiple multiplier

Recurring revenue is the single biggest premium driver in LMM services. PE buyers underwrite future cash flows. Recurring revenue gives them confidence in those cash flows. Project-based or transactional revenue creates uncertainty — will customers come back next year? Recurring revenue answers the question with contracts, subscriptions, or maintenance agreements that auto-renew.

The premium scale: 0% recurring (pure project-based): standard project-business multiples (3-6x typical in services). 30-50% recurring (mixed model): 0.5-1x EBITDA premium over the same business with no recurring. 70%+ recurring (subscription-like or contracted maintenance): 1-3x premium, sometimes more in specialty categories. SaaS-quality recurring software can hit 8-15x EBITDA.

How to build recurring revenue if you don’t have it: for project-based services, layer in maintenance contracts, monitoring agreements, support retainers, or subscription-style service plans. The conversion typically takes 12-24 months as you migrate one-time customers onto recurring agreements. For product businesses, look at consumables, replacement parts programs, warranty extensions, or service contracts. The categorization matters — PE looks for ‘contractually committed revenue’ not just ‘repeat revenue.’

What counts as recurring revenue (and what doesn’t): qualifies: subscription contracts, multi-year service agreements with auto-renewal, contracted maintenance plans, recurring product replacement programs with embedded contract structure. Doesn’t qualify (despite owner protests): ‘our customers always come back’ (without contracts), ‘we have great relationships’ (without contracts), ‘most projects lead to follow-on work’ (without contracts). PE buyers will only credit revenue with documented contractual recurrence.

Defensibility: the moat PE underwrites

PE buyers ask: ‘why won’t a competitor take this customer base in 3 years?’ If the answer is weak, the multiple comes down. If the answer is strong, the multiple goes up. Defensibility takes many forms: brand strength, customer LTV, switching costs, network effects, regulatory barriers, technical specialization, geographic density, key supplier relationships.

The most credible defensibility signals in LMM: long customer tenure (10+ years average) with documented switching costs. Regulatory licensing or certification barriers in the sector. Technical specialization that takes years to replicate (specialty manufacturing, certain healthcare services). Geographic density that creates operational scale advantages (route-based services, distribution). Dominant local brand recognition in defined geography.

How to demonstrate defensibility in a CIM (Confidential Information Memorandum): specific data, not generic claims. ‘Our average customer tenure is 14.2 years vs industry average of 6.8 years’ is defensible. ‘We have great customer relationships’ is not. ‘Switching to a competitor would require X months of operational disruption based on past customer reviews’ is defensible. ‘We have low churn’ without numbers is not. Quantify or it doesn’t count.

If defensibility is weak: fixable but takes longer than other criteria. Build switching cost via deep operational integration with key customers (training, custom processes, embedded systems). Pursue regulatory advantages where they exist (specialty certifications, compliance leadership). Develop technical specialization through targeted hiring and capability building. The fix takes 24-36 months and is the hardest of the eight criteria to engineer in a short window.

Scalability: can it grow without breaking?

PE buyers underwrite growth. Scalability is whether the business can actually deliver that growth without breaking. The test: can your business handle 2x revenue without major operational re-architecting? If yes, you’re scalable and PE-attractive. If no (single facility at capacity, key processes that don’t replicate, owner involvement that doesn’t scale), you’re a growth-constrained target and PE will discount accordingly.

Scalability indicators PE buyers test: documented operational processes (SOPs, training programs, quality control). Replicable unit economics (each new branch, customer, or location follows predictable financial patterns). Technology infrastructure that supports growth (CRM, ERP, financial systems, not Excel-based duct tape). Hiring pipeline that can deliver the people the growth requires.

How to demonstrate scalability: show the underlying unit economics by location, customer cohort, or service line. PE buyers love ‘same-store growth’ analyses that prove existing operations are growing organically while you add new ones. Document your replication playbook — how a new location, new customer onboarding, or new service line gets stood up. The more systematic, the more attractive.

If scalability is weak: the playbook is operations system investment over 12-24 months. Hire a COO if you don’t have one. Document the top 20-50 operational processes. Migrate from Excel to proper systems (CRM, ERP, financial reporting). Build training and onboarding programs. The cost is real ($200k-$500k typical) but the multiple impact is meaningful (1-2x EBITDA uplift typical for businesses moving from sub-scalable to platform-quality).

Financial reporting: the gate to QoE survival

Every PE deal goes through Quality of Earnings (QoE) before close. Independent accountants review your books, validate your reported EBITDA, normalize for one-time items, and produce an adjusted EBITDA number. The buyer’s offer is then re-priced based on that number. Across LMM transactions, QoE typically adjusts seller-reported EBITDA downward by 10-20%.

Your financials need to survive QoE without surprises. Surprises during QoE are the #1 cause of post-LOI re-trades. Things QoE will check: revenue recognition consistency, expense classification, owner-related expenses, inventory valuation, accounts receivable aging, working capital trends, customer-level revenue stability. If your reporting is messy, QoE will find issues, and your offer will get re-traded down 5-15%.

The QoE-survival baseline: reviewed financials (not just compiled). Monthly closes within 10 days. Trial balance reconciled monthly. Owner expenses cleanly separated from business expenses. Revenue recognition consistent with industry standards. Working capital normalized. If you have all of this, QoE is a formality. If you don’t, expect adjustments.

How to upgrade financial reporting (12-24 month playbook): hire a fractional CFO if you don’t have a full-time one ($60-150k/year typical). Move to monthly closes within 10 days (process discipline, not just hiring). Get reviewed financials for the trailing 24 months before going to market ($15-30k/year typical). Run a sell-side QoE 6 months before going to market ($25-50k typical) to identify and clean up surprises before the buyer’s QoE finds them. Total cost: $100-300k over 18 months. Multiple impact: 0.5-1x EBITDA uplift typical.

Customer concentration: the silent multiple killer

Customer concentration is the #1 driver of valuation discounts in the lower middle market. Buyers consider any single customer over 10% to be a concentration risk. Over 20% triggers active discount (typically 0.5-1x EBITDA). Over 30% can kill deals or force large earnout structures. The discount depends on contract length, customer tenure, and whether the relationship would survive your departure.

Why PE cares so much: loss of one major customer can wipe out 15-30% of EBITDA in a concentrated business. PE’s underwriting model assumes EBITDA growth, not EBITDA cliff risk. A business with 35% concentration in one customer is essentially a bet on that customer staying, which PE doesn’t want to underwrite at full multiples.

The customer-concentration fix (12-24 months): negotiate longer contracts (3-5 years with auto-renewal) with concentrated customers. Build redundant relationships within concentrated customer organizations (introduce your operations team to their plant manager). Document the relationships in CRM with detailed history. Intentionally diversify by acquiring smaller customers in parallel. Reduce dependence on any single customer to under 15-20%.

If concentration can’t be reduced: your buyer pool shrinks dramatically. Search funders and family offices won’t buy you (they need the business to operate without concentration risk). PE platforms might buy at 1-2x EBITDA discount with extended earnout. Strategic buyers might pay full multiple IF they’re acquiring you specifically for the concentrated customer relationships. Position accordingly.

Management depth: can the business run without you?

PE buyers think in terms of ‘day one when the founder is gone.’ If the answer is ‘the operations VP keeps everything running, the sales lead manages key accounts, the controller handles the books,’ you’re a high-multiple business. If the answer is ‘no one knows how anything works without me,’ you’re owner-dependent and discount-eligible.

The functional layer PE wants to see: COO or operations VP (operational leadership independent of owner). Sales VP or sales director (revenue function not dependent on owner relationships). Controller or CFO (financial function with system maturity). Sometimes also: marketing director, customer success lead, technology lead. The cost of these roles is real (typically $100k-$300k each) but the multiple uplift typically pays for it 3-5x over.

The 30-day vacation test: could the business operate at 90% capacity if you took a 30-day vacation right now? Most owners admit no. The fix: hire or promote into the gaps over 12-24 months, then force the test by actually taking 2-3 long vacations. The first one will reveal the gaps. The second one validates the fix. By the third vacation, the business runs without you and PE buyers see it as platform-quality.

How to structure management for sale: key roles in place 18-24 months before going to market. Stay-bonus or retention agreements for key managers triggered at sale (typical: 1-2x annual salary, paid 12-24 months post-close to ensure retention). Documentation of org chart, succession planning, decision-making authorities. The PE buyer needs to underwrite the post-close organization — the cleaner you make that picture, the higher the multiple.

Sector positioning: which PE firms are even looking at you

PE firms specialize by sector. Some are generalists (will look at any sector that meets their financial criteria). Most are sector specialists (only look in 2-5 specific industries). The PE firms actively buying in your sector RIGHT NOW are the relevant universe — not the broader PE world. Identifying which firms are actively deploying in your sector is the difference between ‘15 potential bidders’ and ‘crickets.’

Active LMM PE sectors in 2026 based on the 76 firms in our network: manufacturing (50% of buyers active), electrical contracting (40%), HVAC (36%), distribution (34%), home services / plumbing (29% each), business services (25%), industrial services (20%), software (20%), healthcare services (16%), pest control (12%). If your business is in one of these, the buyer-side window is open right now.

Sectors with thinner PE buyer pools (under 10%): restaurants, retail, automotive services, fitness, construction services, and most consumer-discretionary categories. PE is largely absent here in 2026, though some specialized funds remain active. If you’re in these sectors, the right buyer is more likely to be a strategic acquirer or family office than a traditional PE platform.

Why sector identification matters: going to market without knowing which 5-15 PE firms are realistic buyers wastes 6-9 months in an undirected process. Going to market with that knowledge cuts time to close to 60-120 days. Sector mapping is where buy-side partnerships add disproportionate value — we know the firms because we work with them, and we can tell you within hours which are realistic for your specific business.

Platform vs add-on: positioning for the right PE mode

If you’re positioning as a platform target ($3-15M EBITDA): PE buyers will evaluate you as the foundation of a multi-acquisition roll-up. They want strong management depth (because they’ll be relying on your team to integrate add-ons). They want clear sector leadership or differentiation (because the platform thesis depends on you being the consolidator). They want growth runway, both organic and via add-on. They want clean financial systems that can scale to support add-ons.

Platform positioning emphasizes: scalability (can support 3-5x current size without re-architecting). Management quality (CEO + COO + sales VP + CFO functioning as a team). Differentiation (why are you the right consolidator vs being consolidated). Growth thesis (specific path to 50-100% EBITDA growth over 5-7 years). Clean infrastructure (CRM, ERP, financial systems ready for integration work).

If you’re positioning as an add-on target ($500k-$3M EBITDA): PE buyers will evaluate you as a bolt-on for an existing platform. They want clean integration potential (minimal IT/system conflicts, clear customer fit, geographic or service-line complementarity). They want fast-close potential (less management depth required because the platform’s team will absorb operations). They want owner flexibility (shorter post-close transition acceptable).

Add-on positioning emphasizes: fit with existing platforms (specific platforms in your sector that would benefit from acquiring you). Customer base value (especially if you have customers the platform doesn’t serve). Geographic complementarity (especially if you serve a region the platform wants). Integration simplicity (single system, single ERP, manageable customer migration). Speed-to-close (60-120 days possible vs 6-9 months for platforms).

The 12-24 month preparation playbook

Most owners who attract PE in 2026 spent 12-24 months preparing. The preparation work isn’t cosmetic — it’s structural. Each gap closed is typically worth 0.5-1.5x EBITDA in multiple uplift. Owners who skip the prep work go to market faster but typically receive 60-75% of what their business is worth. Owners who do the prep work go to market with platform-quality positioning and capture the headline multiples.

Months 1-6: diagnose the gaps. Run honest assessment against the 8 platform-quality criteria. Identify the 3 weakest. Build a 12-18 month plan for each. Hire fractional CFO if needed. Begin documenting operational processes. Start customer concentration reduction (longer contracts, redundant relationships). Begin management hiring if gaps exist.

Months 6-12: execute on the gap-closing plan. Move financial reporting to monthly closes within 10 days. Begin building reviewed-financial track record for trailing 24 months. Build out functional VP layer where missing. Continue customer diversification work. Document processes. Begin running 30-day vacation tests.

Months 12-18: validate the prep work. Complete reviewed financials (or audited if pursuing the cleanest tier). Run sell-side QoE to surface and resolve any remaining surprises. Begin confidential exploratory PE conversations under NDA to validate readiness and bid range. Refine messaging and CIM materials based on buyer feedback.

Months 18-24: go to market or accelerate. If gaps closed faster than expected, accelerate to formal process. If new gaps emerged, extend timeline. Most owners who do this well are at platform-quality positioning by month 18-24, ready to engage with their realistic buyer pool from a position of strength.

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Conclusion

How do you attract private equity to buy your business? You don’t market harder. You don’t hire a more aggressive broker. You become attractive. The 8 platform-quality criteria are the buyer’s checklist; the 12-24 month preparation playbook is the path to hitting most of them; the sector-specific PE buyer mapping is what tells you which firms are realistic for your specific business. Owners who do this work go to market with leverage and capture headline multiples. Owners who skip it go to market hoping a buyer will see past the gaps — and typically leave $2-7M on the table. The framework above is the work. Your CFO, COO, and operating team execute it. We don’t just describe what PE looks for; we work directly with the 76 firms in our network and can tell you exactly which ones are realistic buyers for your specific business once it’s prepared. And if you want to talk to someone who knows the buyers personally instead of running an auction, we’re a buy-side partner — the buyers pay us, not you, no contract required.

Frequently Asked Questions

What’s the minimum EBITDA to attract private equity?

$2-3M EBITDA is the typical platform threshold. Below $2M, you’re primarily an add-on target (PE buys you to bolt onto an existing platform). Above $3M, you’re a credible platform candidate (PE buys you as the foundation of a roll-up). Above $5M, you’re in the LMM sweet spot where most active PE capital concentrates. Some PE firms target sub-$1M EBITDA in active sectors via add-on programs.

What do PE firms look for in a business?

Eight platform-quality criteria: $2-3M+ EBITDA with 5-15% growth, recurring or contracted revenue 30%+, defensibility/moat, scalability of operations, clean financial reporting that survives QoE, customer concentration under 15-20%, management depth beyond the owner, and active sector positioning. Hitting 6-7 of 8 makes you a competitive platform target.

How long does it take to prepare a business for PE sale?

Most owners need 12-24 months of focused preparation to move from ‘sub-platform’ to ‘platform-quality’ positioning. The work includes customer concentration reduction (12-18 months), management depth building (12-24 months), financial reporting upgrade (12-18 months), and operational documentation (6-12 months). Some prep work overlaps; total elapsed time is typically 18 months for committed owners.

Should I work with a sell-side broker to attract PE?

Sell-side brokers run 9-12 month auction processes that can attract multiple PE bidders, but charge 8-12% of deal value (often $300k-$1M) plus monthly retainers and require 12-month exclusivity. Buy-side partners (like CT Acquisitions) work directly with PE firms in your sector, can introduce you to realistic buyers in days, and you pay nothing. Different paths; choose based on whether you want auction breadth or relationship-driven matching.

How do I find PE firms that buy businesses like mine?

Three paths: (1) Sector-specific PE databases (PitchBook, SourceScrub, others) listing firms with relevant investment criteria. (2) Industry trade publications and conferences where PE firms are visible. (3) Buy-side partners who already work with sector-active PE firms and can identify the realistic 5-15 buyers in your specific sector within hours instead of months.

What’s the difference between a platform investment and an add-on?

Platform investment: PE buys a $3-15M EBITDA business as the foundation of a multi-acquisition roll-up, holds 5-7 years, adds 5-15 acquisitions, exits at higher EBITDA and multiple. Add-on investment: PE buys a $500k-$3M EBITDA business to bolt onto an existing platform, integrates within 12-24 months, exits as part of the platform. Different criteria, different positioning, different deal dynamics.

What multiple will PE pay for my business?

2026 LMM PE multiples by sector: manufacturing 5-11x, electrical 5-10x, HVAC 5-10x, distribution 5-9x, plumbing/home services 4.5-9x, business services 4-8x, healthcare specialty 7-12x, software (recurring) 8-15x. The floor is sub-platform-quality businesses; the ceiling is platform-quality businesses with strong growth and management depth. Most owners land in the middle 60% of the range.

How long do I have to stay after PE buys my business?

Varies by structure. Platform investment: typically 12-24 months as CEO or executive role, often with rollover equity that participates in the next exit. Add-on investment: typically 6-12 months as a transition advisor, occasionally longer if customer relationships are critical. Recapitalization: often 3-5+ years because you’re keeping a meaningful equity stake. Negotiate the transition terms in the LOI; they’re a major lever in the deal economics.

What is rollover equity and should I take it?

Rollover equity is when you keep 10-30% of the post-close entity (instead of cashing out 100%). PE platforms typically structure 10-25% rollover for sellers staying in transition roles. The rolled equity participates in the ‘second bite’ when the PE firm exits 5-7 years later, often at 1.5-3x the original valuation. Rollover is tax-deferred (no immediate tax on the rolled portion). Worth taking when you believe in the platform’s growth thesis and want continued upside.

Will PE keep my employees and management team?

PE platforms generally retain most employees and management because the team is critical to operating the business they just bought. PE add-ons sometimes consolidate roles (especially overhead functions like HR, IT, finance) over 12-24 months as integration progresses. Strategic buyers with cost-takeout theses cut more aggressively. Negotiate retention agreements for key managers in the LOI to protect them through the transition.

How do I structure my financials to attract PE?

Move to monthly closes within 10 days. Get reviewed financials (or audited for the cleanest tier) for the trailing 24 months before going to market. Hire a fractional or full-time CFO. Cleanly separate owner expenses from business expenses. Run a sell-side QoE 6 months pre-market to surface and resolve any surprises. Total cost: $100-300k over 18 months. Multiple impact: 0.5-1x EBITDA uplift typical.

Should I consider a recapitalization instead of a full sale?

Worth considering if you want significant liquidity but aren’t ready to step away. PE recaps let you take 50-80% of value off the table while keeping operating control and 20-50% equity. You participate in the second-bite return when PE eventually exits. Best fit when: business has 3-5+ years of strong growth ahead, you want a partner with capital and expertise, you’re willing to stay 3-5+ years post-recap. About 15-20% of LMM PE deals are structured as recaps.

How is CT Acquisitions different from a sell-side broker or M&A advisor?

We’re a buy-side partner, not a sell-side broker. Sell-side brokers represent you and charge you 8-12% of the deal (often $300K-$1M) plus monthly retainers, run a 9-12 month auction process, and require 12-month exclusivity. We work directly with 76+ buyers — search funders, family offices, lower middle-market PE, and strategic consolidators — who pay us when a deal closes. You pay nothing. No retainer, no exclusivity, no contract until a buyer is at the closing table. You can walk after the discovery call with zero hooks. We move faster (60-120 days from intro to close) because we already know who the right buyer is rather than running an auction to find one. We don’t just describe what PE looks for; we can tell you exactly which firms in our network are realistic buyers for your specific business once it’s prepared.

Related Guide: Buyer Archetypes: PE, Strategic, Search Fund (2026) — How different buyer types value businesses and structure deals.

Related Guide: 2026 LMM Buyer Demand Report — Aggregated buy-box data from 76 active U.S. lower middle market buyers.

Related Guide: Quality of Earnings (QoE) — What Buyers Test — What QoE analysts test, what they reject, and how to prepare.

Related Guide: Should I Sell My Business? 12-Question Self-Assessment — Decision framework for owners weighing whether to sell now, wait, or keep operating.

Want a Specific Read on Your Business?

30 minutes, confidential, no contract, no cost. You leave with a read on your local buyer market and a likely valuation range.

CT Acquisitions is a trade name of CT Strategic Partners LLC, headquartered in Sheridan, Wyoming.
30 N Gould St, Ste N, Sheridan, WY 82801, USA · (307) 487-7149 · Contact

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