4 Non-Financial Reasons Owners Sell
It's Not Always About Just The Money!
Happy Wednesday folks!
Thanks for joining us for another edition of Atlasview Insights. We use this newsletter to share our strategies, philosophies, experiences, and lessons we’ve learned along the way. Small bite-sized insights for business owners, dealmakers, and investors.
In this newsletter, we cover:
Interested in Leading a PE-Backed Company?
Have An Opportunity For Us?
4 Non-Financial Reasons Owners Sell Their Business
Why Most QofEs Miss 50% of the Work
ICYMI - Popular Previous Issues
Our Deal Process
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Interested in Leading a PE-Backed Company?
Atlasview Equity Partners is on the lookout for talented CEOs and experienced operators to drive growth at our portfolio companies. We are seeking professionals with an impressive track record and an abundance of ambition. If you're eager to leverage your leadership skills, build a lower-mid market business into a market leader, and generate significant personal wealth, we want to hear from you.
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Have An Opportunity For Us?
Before we jump into this issue, a quick reminder, Atlasview Equity Partners is a private equity firm that acquires and builds B2B businesses in the lower middle market. For platform investments, we look for:
Business Model: vertical software, business services, specialty distributors
Business Size: minimum $1m EBITDA or $10m revenue
Business Profile: sticky B2B customer base
Business HQ: US & Canada
For add-on acquisitions for our portfolio companies, we have no size/geography criteria. We’re seeking add-ons in the library, archive, legal, and government niches for our portco Soutron Global and HVAC distributors for our portco PureFilters.
Whether you’re a business owner interested in working with us, or an intermediary with a deal to share, always feel free to contact us!
4 Non-Financial Reasons Owners Sell
As a buyer of owner-operator businesses, Atlasview has encountered all kinds of reasons why owners look to sell their businesses. Sometimes it’s financially driven - business owners are looking for a well-deserved payday and want to diversify their net worth. But sometimes, the reason for the sale has little to do with money.
Here are 4 common non-financial reasons owners look to sell their perfectly healthy business:
#1 - Retirement – children don’t want the business, there is no internal succession plan, and eventually the owner wants to stop working full-time to enjoy retirement with their family. Finding a replacement CEO is no easy task and this is something Atlasview can certainly spearhead. We tap into our extensive CEO/Operator Network and utilize our bench of experienced recruiters to find the perfect fit, both strategically and culturally, to ensure a smooth transition.
#2 - Partner Dispute - the business has more than one owner and the owners have differences in strategy, preferences, or work style. A dispute could catalyze the sale of all or some of the business. Atlasview has experience with situations like this and can come up with a creative structure to ensure all parties win.
#3 - Burnout – running a small business is no walk in the park. Many owners, who often wear multiple hats, run out of energy to continue dealing with employees, customers, and or general operations. Atlasview has a proven playbook to streamline operations post-acquisition. With help from our operating partners, we look to alleviate bottlenecks the business may be experiencing.
#4 - Tragedy – adverse health/marital/family situations could catalyze a sale, as the owner needs the liquidity (and free time) for personal reasons. In sensitive situations like this, Atlasview is more than happy to execute a discreet and fully confidential transaction. We have deep respect for business owners who have built a successful business and vow to protect their legacy as the new owners.
None of these reasons have much to do with money or the owner’s confidence in the business. It’s always an important distinction for us, to separate between the quality of the business and the owner’s reason for selling. If you’d like to start the conversation about selling your business, always feel free to reach out to us.
Why Most QofEs Miss 50% of the Work
This is a mandatory watch for all acquirers of small and medium-sized businesses. Elliott Holland of Guardian Due Diligence explains some major pitfalls of standard Quality of Earnings (QofE) reports and common red flags to look out for. We found this video to be very insightful, and Elliott does a fantastic job making the topic of QofE entertaining and humourous!
Check it out below:
In Case You Missed It
Here are some of our previous popular issues:
Reinvesting Capital in Organic Growth
Our Process at Atlasview
We pride ourselves on having a simple and transparent process. Our streamlined process enables us to move quickly to get you answers fast.
Step 1: Contact Us
Step 2: Execute NDA & Schedule Call
Step 3: Receive Offer & High-Level Terms
Step 4: Execute LOI & Complete DD
Step 5: Close Deal & Receive The Cash
Step 6: The Fun Part Begins!
Whether you’re a business owner interested in working with us, or an intermediary with a deal to share, always feel free to contact us!
About Atlasview
Atlasview Equity Partners is a private equity firm that acquires and builds B2B businesses in the lower middle market. We combine patient capital with proven strategies to deliver predictable results for our stakeholders.