How do I sell my business to a private equity firm?

Private equity firms look for businesses with durable cash flow, a management layer that can run without the founder, and a clear path to grow. Before you approach buyers, clean up your financials (ideally accrual-based with add-backs documented), confirm a defensible EBITDA number, and get a realistic valuation. PE generally pays in the 4x-8x EBITDA range, toward the high end for recurring revenue and low owner dependence.

The process runs in stages: package a blind teaser and a confidential information memorandum, sign NDAs with interested buyers, collect indications of interest, negotiate a letter of intent (LOI) that sets price and structure, then survive roughly 60-90 days of due diligence before closing. From signed LOI to close is typically about 4-6 months, and a full process from preparation to close usually takes 6-12 months.

Expect structure, not just a number. A typical PE deal is 60-80% cash at close, with the remainder as equity rollover, a seller note, or an earnout. Those mechanisms keep you partly invested in the upside and give the buyer confidence the business will keep performing. Both the headline price and the structure are negotiable, and a competitive process is your best lever on each.

DealSeam is not a traditional business broker; we introduce owners to qualified private equity buyers, search funds, and family offices where there is a genuine fit, and our success fee is paid by the buyer so sellers pay nothing. We never guarantee a buyer or a price, but a well-prepared business presented to the right buyers is what creates competitive tension.