Selling to a PE firm can be a great decision depending on your circumstances:

Negotiations:

As professional dealmakers, private equity firms are often shrewd negotiators and will pressure the purchase price, as well as use deal mechanics like earnouts and equity rollovers. On the other hand, as professional dealmakers, PE firms are good at getting to closing.

Management involvement: Private equity firms often- but not always- retain existing management to continue running the business, providing an opportunity for you to stay involved in the company's operations. That may not be a great fit if you plan to retire immediately.

Rollover Equity: Private equity firms often pay part of the purchase price in the equity of the post-closing business. If you do your diligence and believe that the new owner can fuel growth, this is a great way to get a second bit at the apple.

Growth potential: Private equity firms typically invest in businesses with growth potential and can provide resources, expertise, and capital to help scale the business.

Exit strategy: Private equity firms typically have a defined exit strategy, often looking to sell or within 3 - 7 years. Consider whether this timeline aligns with your personal and professional goals.