After the Deal: What Happens When You Sell to a Private Equity Firm?

Many founders ask me, “What happens after I sell to a private equity shop?”

The short answer? It depends. But let’s take a deep dive into what really happens after the ink dries on that life-changing deal.

Day 1: Business as Usual? Not Quite.

You might imagine a dramatic scene where a team of Wall Street suits storms into the office, demanding sweeping changes. That can happen in turnaround situations, but in most cases, it’s more of a “steady as she goes” approach. The PE firm didn’t buy your company to break it; they bought it to build on what’s already working.

Typically, the first day after closing is about reassurance. Employees are briefed, customers are informed (or not, depending on the deal structure), and the new partners introduce themselves. If you’re staying on as CEO, your role remains largely the same—at least for now.

Next 30/60/90 Days: Strategy, Strategy, Strategy

Now comes the deep dive. The PE firm will work closely with you to analyze the business. Think of it like a medical check-up but for your company. What’s working? What’s not? Where are the biggest opportunities?

Some Key Focus Areas:

• Growth Obstacles: Are there operational inefficiencies? Pricing mismatches? Market expansion opportunities?
• Financial Performance: The PE firm will dig into cash flow, margins, and any areas where revenue can be optimized.
• Talent & Leadership: Does the team have the right players in place to scale?
• Technology & Processes: Are there tools that could make the business run faster and smoother?

Together, you and the PE team create a roadmap—a clear action plan to drive growth and profitability.

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Day 90 Onwards: Execution Mode

This is where the real transformation begins. The strategies identified in the first few months start rolling out. PE firms don’t just want ideas; they want results. And they bring firepower to make things happen.

Key Initiatives You Might See:

• Sales & Marketing Boost: Expect new sales hires, better marketing collateral, and often a stronger digital presence.
• Strategic Partnerships: Your new PE backers likely have connections to potential clients, suppliers, or even acquisition targets.
• Operational Enhancements: Process improvements, automation, and cost optimizations kick in.
• Hiring & Leadership Changes: The PE firm has a vast network of pre-vetted talent to fill key roles fast. They may also introduce a new CFO, COO, or even a new CEO if that’s part of the plan.

What Founders Need to Know

Selling to private equity isn’t just about getting a check and walking away (unless that was the deal). It’s about partnering for the next phase of growth. Some founders thrive under PE ownership, using the resources and expertiseto scale faster than they ever could alone. Others find the shift challenging, especially if they’re not used to answering to investors who expect rapid results.

Key Questions to Ask Before Selling:

• What is the PE firm’s typical post-acquisition strategy?
• How hands-on will they be in decision-making?
• Do they have a track record of successful partnerships with founders?
• What’s the exit strategy? (Yes, they’re already thinking about their own exit!)

In the End, It’s About the Right Partner

The best PE deals are true partnerships. A great PE firm will provide more than capital—they’ll offer guidance, resources, and connections that can catapult your company to the next level. But not all PE firms are created equal. Do your homework, talk to other founders who have been in your shoes, and make sure the firm you’re selling to aligns with your vision for the future.

Selling your company is a monumental decision. Understanding what happens next can make all the difference in ensuring a smooth transition and long-term success.

Credit: This article is inspired by a LinkedIn post by Azim Nagree, an M&A Specialist for SMBs based in Austin, Texas, United States. TICE takes pride in drawing inspiration from such leaders and extending this knowledge to entrepreneurs and business seekers.