Private Equity Is Coming for Small Business — Are You Ready?

Contributed by SBOC Member:

Picture of Pat Miller

Pat Miller

Founder of the Small Business Owners Community

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There’s a new trend that Pat Miller flagged on today’s Businessing, and it’s worth paying attention to whether you’re thinking about selling or not: private equity has turned its “death star tractor beam” toward small businesses.

PE firms are calling plumbers, electricians, and roofers, trying to buy them out because small businesses are stable and they make good money. One plumber in Atlanta reported getting hundreds of offers and turning down every single one because accepting would mean reducing his team, and he wants to take care of his people.

Even Pat, who laughed about his “piddly little business,” has gotten emails from people asking if he’d like to discuss selling. His answer: no.

If you’re a service-based business owner doing solid work, there’s a good chance you’ll start hearing from these folks if you haven’t already. The attention is flattering, but the pattern is worth understanding: PE firms buy businesses, optimize for returns, and the people who built those businesses often lose control of what made them special in the first place.

This isn’t a warning to never sell. It’s a heads-up that the attention is real, it’s growing, and it’s worth knowing what your business is actually worth before someone shows up with a number.

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Pat Miller

Contributed by

Pat Miller

Founder of the Small Business Owners Community

Pat spent two decades in broadcasting management and hosting. After leaving the radio industry, he spent time consulting small businesses and realized the support system for entrepreneurs was broken. Where could you find help for improving small businesses and building real connections with other like-minded people. In June of 2020, the Idea Collective Small Business Community was born.