A private equity firm is eyeing my business, offering €2,400,000. Currently, we’re pulling in around €1.2 million, with a tidy 25% profit margin. As an apartment block management firm, I began this venture in 2019 at 21 as more of a side gig, never anticipating it would grow to oversee 1,200 units. It’s pretty surreal. I started with no capital, and all four of my staff, earning €30k annually, were trained by me. Now, facing this private equity proposition, I’m a bit in the dark. Any tips for a first-timer in dealings with a PE company?
Creating a throwaway account for personal reasons.
P.E. typically buys in bunches.
When they buy single firm, it’s usually an above average performer that happens to fit in with their expansion strategy.
Here, it is not uncommon to command a premium.
So, I would engage an appraiser who knows your industry inside and out and get professional opinion of value.