Selling to Private Equity
Private equity firms are the most active — and often the highest-paying — buyers in home services, healthcare, professional services, and dozens of other industries today. Understanding how they buy, what they screen for, and how to get your business in front of the right firms is what this guide covers. Written by a broker with direct PE relationships across multiple industries.
Private equity firms buy small businesses using a platform-and-add-on roll-up strategy — acquiring multiple companies in the same industry, integrating them under centralized management and technology, and selling the combined entity at a significantly higher multiple. For sellers in the right industries, this means premiums of 1x–3x above what a traditional buyer would pay, the option to retain equity for a second payout, and a faster, more structured process than a traditional sale. The catch: PE deal flow comes from relationships, not listing sites.
Why private equity has changed the small business acquisition market
Twenty years ago, the most likely buyer for a $2M SDE home services company was another operator or an individual entrepreneur. Today, it's increasingly a private equity firm executing a regional roll-up thesis. In home services alone, dozens of PE-backed platforms are actively acquiring in virtually every major US market.
For sellers, this is a meaningful opportunity — but only for those who understand how PE buyers think, what they screen for, and how deals actually get done. This guide covers the complete picture: the PE acquisition model, the specific roll-up activity in home services, what PE firms look for in due diligence, how these deals are structured differently from traditional sales, and how to position your business and get it in front of the right buyers. These pages complement our business valuation guide and complete selling guide.
Five topics every seller needs to understand
- 01The Playbook
How Private Equity Firms Buy Small Businesses: The Roll-Up Playbook
Private equity firms are the most active acquirers in many small business industries today. Understanding how they think — and how they structure deals — is essential for any owner considering a sale.
Read this guide → - 02Home Services
Private Equity Roll-Ups in Home Services: What HVAC, Plumbing, and Pest Control Owners Need to Know
Home services is the most actively consolidated industry in America right now. PE firms are buying HVAC, plumbing, electrical, pest control, and roofing companies at premium multiples — and the window for the highest prices won't stay open indefinitely.
Read this guide → - 03PE Criteria
What Private Equity Firms Look for When Acquiring a Small Business
PE firms use a defined set of criteria to evaluate acquisitions — and most sellers don't know what it is. Understanding their screening process is the first step to getting a deal done at a premium price.
Read this guide → - 04Deal Structure
PE Deal Structures Explained: Equity Rollovers, Earnouts, and the Second Bite of the Apple
Private equity deals look different from traditional business sales. Understanding rollover equity, earnouts, and management retention agreements before you negotiate can mean millions of dollars in the outcome.
Read this guide → - 05Getting the Deal Done
How to Sell Your Business to Private Equity: Preparation, Process, and Getting the Right Buyers in the Room
PE deals don't come from listing sites. They come from relationships. Here's how to position your business for a PE exit — and why the broker you choose determines which buyers you access.
Read this guide →
Talk to a broker with active PE relationships
PE deal flow doesn't come from listing sites — it comes from relationships. John Matsis maintains direct relationships with private equity firms and family offices acquiring across home services, healthcare, professional services, and other industries. If your business might be a fit for a PE exit strategy, a 20-minute conversation is the fastest way to find out.
Frequently asked questions
What is a private equity roll-up?
A roll-up is a PE strategy of buying multiple businesses in the same industry, integrating them under centralized management and technology, and selling the combined entity at a higher multiple. Individual businesses sell at 3x–5x SDE; the combined platform sells at 10x–14x EBITDA. The spread between entry and exit multiples is where PE generates its returns — and where sellers in the right industries get premium prices.
Why do PE firms pay more than individual buyers?
PE firms are pricing future synergies and scale, not just standalone earnings. They know that your $1.5M SDE business, integrated into a $25M EBITDA platform, will be valued very differently at exit. They can pay a premium on entry because the math works at exit. Individual buyers pay for the business as it is. PE firms pay for what it becomes as part of a larger platform.
What is rollover equity and the second bite of the apple?
Rollover equity is when you reinvest 10–30% of your sale proceeds into the PE platform instead of taking all cash at close. If the platform exits in 4–7 years at a higher multiple, your retained stake generates a second payout — sometimes larger than the original cash received. This "second bite" is one of the most important financial decisions in a PE deal and requires careful evaluation of the PE firm's track record.
How do I get my business in front of PE buyers?
PE deal flow comes from relationships, not listing platforms. Working with a broker who has direct relationships with active PE acquirers in your industry is the most reliable path. Cold outreach from sellers rarely advances past an initial form response. The broker you choose determines which buyers see your deal — and PE deals are sourced through trusted relationships, not public channels.
John Matsis
John Matsis is a business broker and principal at HedgeStone Business Advisors with direct relationships at private equity firms and family offices actively acquiring across home services, healthcare, professional services, and other industries. He has been on both sides of PE transactions — as an advisor to sellers and through direct relationships with the platforms doing the acquiring. He advises owners on whether their business is positioned for a PE exit and, where it isn't, what to build to get there.