Sell part. Keep a stake.
For owners of service businesses with $5M+ in annual revenue: sell a controlling interest to a partner, keep a minority stake and a role you negotiate.
Retained ownership and future upside are possibilities, not promised second paydays. A retained stake is usually illiquid, often sits behind acquisition debt, and can lose some or all of its value.
20+ years of real-world experience guiding service-business owners from first conversation to closing
What a partner usually takes, and what you can keep
Here is the honest trade. In a majority partnership, the partner buys control. Your role and your protections are negotiated, and the time to negotiate them is before you agree to anything.
Yours What you can keep, if you negotiate it
Partner's What a partner usually takes
"I don't want a boss."
Fair. If a partner buys a majority, you will answer to a board. That is the trade for the cash. What you can protect is your role, your people and your name, and only in writing. In a majority recap the buyer gains control. Minority owners usually keep negotiated rights, not control.
Read this first
Retained ownership and future upside are possibilities, not promised second paydays. Rolled or retained equity is usually illiquid, often a minority position behind acquisition debt, and can lose some or all of its value.
Ready to see how this would look for your company? Explore the options
Kinds of partners
Not every partner works the same way. Here is how the usual kinds tend to differ on control, timeline and how involved they get. This is education, not a list of firms we work with.
-
Private equity group
A firm that buys companies with money from its own investors, usually alongside borrowed money.
Control, timeline and involvement
- Control
- Usually buys a majority and controls the board.
- Timeline
- Plans to sell again. The measured median hold is about 6 years (typical, varies).
- Involvement
- Board meetings, monthly reporting, budget approval. Day to day usually stays with management.
-
Family office
Invests one family's own money.
Control, timeline and involvement
- Control
- Varies. Some buy a majority. A smaller, minority share is a different kind of deal, one we do not arrange (see below).
- Timeline
- No fund deadline forces a sale, so ask what they actually plan.
- Involvement
- Anywhere from hands-off to hands-on.
-
Strategic acquirer
An operating company in your line of work, or next to it.
Control, timeline and involvement
- Control
- Usually buys all or most of the company.
- Timeline
- Usually plans to keep it, not resell it.
- Involvement
- High. Systems, brand and people may be folded into theirs, so negotiate your name and your people.
-
Independent sponsor
An individual or small team that finds and leads a deal, then raises equity deal by deal instead of from a committed fund.
Control, timeline and involvement
- Control
- Usually a majority, once the deal is funded.
- Timeline
- Set by the investors they bring to each deal.
- Involvement
- Often hands-on.
-
Minority or growth investor
Growth equity is usually a minority investment in an established, growing company, with far less debt than a buyout. In a minority deal the owner usually keeps control and the investor gets negotiated rights.
We do not arrange minority investments or growth-capital raises; if one may fit, we can refer you to a registered broker-dealer.
Sources: hold period, Private Equity Info; independent sponsor and growth equity definitions, Altss: independent sponsor and Altss: growth equity. Typical, varies.
Not sure which kind fits? Explore the options
Questions to settle before you shake on anything
Tick each one off when you have a straight answer in writing. This list stays on your screen; it is not saved or shared.
0 of 8 settled
Want to talk them through with an advisor before you talk to any buyer? Explore the options
How we work
We are advisors, not the investor. We do not buy companies or put in money. We advise owners on transactions in which a buyer acquires a controlling interest and takes an active role in running the business, and we make introductions to qualified buyers, including private equity groups, family offices and strategic acquirers.
-
1 Talk through goals
Cash now, your role, your people, your timing. The first conversation costs nothing.
-
2 Review fit and numbers
Value depends on earnings quality, growth, buyer demand and terms. We do not quote ranges before reviewing your numbers.
-
3 Approach qualified buyers under NDA
Only once you authorize it, and only to buyers who have been qualified first. We share identifying details with buyers only under an NDA.
-
4 Compare offers side by side
Cash at close, the stake you keep, the debt on the company, your role and the rights around your stake, on one page.
-
5 You decide
Take an offer, ask for changes, or walk away. Timelines vary with preparation and the market; many processes take months.
Every buyer is qualified before they ever see your name.
Before a buyer signs an NDA, they go through several screening steps covering who they are, their capacity to close, and how well your business fits what they are looking for. Only buyers who clear every step are introduced.
Interest is not the hard part. Our listing network draws hundreds of blind inquiries beyond our own outreach, and our blind teasers are viewed thousands of times. That outreach reaches a network of more than 100,000 buyers, and it grows every day. Qualification is how we turn that volume into a short list worth your time.
About the stake you keep
Retained ownership and future upside are possibilities, not promised second paydays. Rolled or retained equity is usually illiquid, often a minority position behind acquisition debt, and can lose some or all of its value. Some structures may defer tax on the rolled portion; your CPA or tax attorney decides.
Explore the options
Tell us a little about the company and what you want. An advisor reviews every inquiry; unknown figures are fine.
Is this for me?
Owners of service businesses with about $5M or more in annual revenue who are weighing a majority sale with a retained stake, or a full sale. Typically $1M or more in annual earnings, in trades and route-based services such as HVAC, plumbing, electrical, pest control and staffing. Unknown figures are fine.
Are you the buyer?
No. We are advisors. We do not invest, lend or offer seller financing.
Is it confidential?
We handle inquiries discreetly and share identifying details with buyers only under an NDA.
What does it cost?
The first conversation costs nothing. If you engage us, fees are set in writing before any work starts.
What happens after I send this?
An advisor reviews your inquiry and replies by email within one business day. If a call would help, you can ask for one when we reply.
100% US-based A real person, any hour.
We use AI behind the scenes for internal work and buyer matching, but people run every client relationship. Our principals take shifts so one of us is always reachable, day or night, and anything you send is routed right away.
Thank you. We have your answers.
Here is what happens next:
- An advisor reads your answers and reviews fit. Unknown figures are fine.
- We reply by email within one business day. If a call would help, you can ask for one when we reply.
- The first conversation costs nothing. If you engage us, fees are set in writing before any work starts.
- Nothing about your company goes to any buyer unless you authorize it, and then only to a qualified buyer under an NDA.
Questions in the meantime: info@exitstrategies.com or (814) 564-5252.