This YouTube video (by Bill Gallagher) offers advisor-style guidance on negotiating with private equity buyers. The excerpt explains that PE buyers—often platform or strategic acquirers—can supply capital and synergies; running a competitive process and conducting direct vetting calls with buyers can create negotiation leverage to increase purchase price and improve deal structure.
We do have a lot of interest from private equity firms. And with the private equity, oftentimes they'll own a firm already in the industry, like a platform firm, that almost makes it like a strategic acquisition. And oftentimes those ones are willing to put a lot of capital and get a lot of synergies from the transaction, which can really help to drive up the purchase price, especially as we run a competitive process. And part of what we do is get involved with those buyers on calls. I will personally get on with them to kind of vet out, okay, what is it? How does this fit with what you're doing? Right. So that we can use that as negotiation leverage and. Okay, great. I think we can push them a little bit higher as far as purchase price and structure.
