Skip to content
Premium Symbol Premium

How to Exit: PE or Trade?

exit

Simon Pearson, Anna Faelten and Stefan Koeck discuss the exit options available to tech entrepreneurs in the UK.

EY’s most recent survey of entrepreneurs, the Fast Growth Tracker, showed that 65% of UK founders expect to exit their business within five years.

When looking to sell a company, understanding the key differences between a Private Equity (PE) sale and a Trade acquisition is important. It is essential to develop “Buyer Empathy” (an understanding of their key motivations and processes) in order to recognise their similarities and differences as you embark on your transaction. Below, we’ve set out essential takeaways to consider when approaching a transaction.

PE Buyers

PE buyers are focussed on the risk and return they can achieve by buying a business and selling it at a later date. Most PE houses are looking for a well-managed business with a history of consistent growth in earnings and underlying cash flows as well as a defensible business model. ...