Private Equity Groups
It is estimated that between 20% and 60% of add-on acquisitions involving private equity groups (PEGs) and business owners proceed without the seller being represented by an experienced M&A advisor. While private equity groups are fully capable of executing these transactions, they generally prefer that sellers have their own professional representation—and that PEGs are not placed in the position of acting as both buyer and informal advisor to the seller.
PEGs prefer that sellers have professional representation to manage the sellers’ expectations, manage due diligence coordination, explain the process and timelines, answer any questions along the way and any other critical aspects of the deal process. Experience shows that a represented seller significantly improves the likelihood of closing while accelerating timelines, reducing friction, and lowering overall transaction costs. The result is better outcomes for all parties involved.
LOI to Close™ for Private Equity Groups was designed specifically to address this need. When a PEG identifies a business owner who is ready to sell but lacks professional representation, the PEG will encourage the seller to work with an LOI to Close™ experienced advisor to represent the seller, streamline the transaction, and help move the deal efficiently to a successful closing.
