On February 26, 2025, ACG 101 – Association for Corporate Growth 101 Corridor hosted a panel of industry leaders to discuss the evolving PE and M&A landscape. The panel was moderated by Stradling Yocca Carlson & Rauth LLP Partner, Alidad Damooei and featured insights from industry leaders, Jeremy Holland (Managing Partner The Riverside Company), Alicia Zhu (VP Shamrock Capital), Tim Meyer (Co Founder and Managing Partner Angeles Equity Partners, LLC), and Matt Minnaugh (Director of Business Development Century Park Capital Partners. Before the discussion kicked off, we were treated to an industry update from Calabasas Capital Managing Director, David Bonrouhi that left the room feeling optimistic about what is in store for 2025 and beyond. Here’s what you need to know:
Key Takeaways from the Panel Discussion:
Is Private Equity the Right Move for Your Business?
Private equity is adapting to a fast-changing economy. As a business owner, understanding the factors influencing investor behavior can help you make better strategic decisions.
- Founder-Led Support & Institutional Capital: Matt Minnaugh of Century Park Capital Partners emphasized that PE firms are prioritizing founder-led businesses with strong management teams. If you’re considering PE investment, know that firms with structured executive alignment can see up to 15% higher returns, according to Bain & Company.
- Exit Pressure & Liquidity Demands: If you’re thinking about selling your business, now may be a good time. Private equity firms are under increasing pressure to generate liquidity events and return capital to their limited partners (LPs), which impacts their distribution of paid-in capital (DPI) metrics. Preqin reports that PE firms are sitting on $1.3 trillion in dry powder, meaning they need to deploy capital efficiently, creating potential opportunities for business owners looking to exit.
- AI & Talent Investment: PE firms are increasingly investing in AI to streamline operations and enhance portfolio value. If your company is leveraging AI or data-driven decision-making, you may be a more attractive target for investors. McKinsey & Company estimates that AI adoption in portfolio companies can improve EBITDA growth rates by 12-18%.
How Market Trends Impact Your Business’s Valuation
Beyond internal operations, broader market trends will impact how investors view and value your business.
- Industries in Demand: If you own a business in IT services, blue-collar trades, restoration, or landscaping, you’re in a prime position. Tim Meyer of Angeles Equity Partners, LLC noted that fragmented industries remain highly attractive to PE firms. PitchBook data shows an 18% year-over-year increase in PE deal volume in these sectors.
- Boomer-Owned Business Transitions: If you’re a business owner over 55, you’re part of a massive wave of potential sellers. The National Center for the Middle Market research reports that over 40% of businesses with $10M-$100M in revenue are owned by baby boomers. A good portion of these businesses don’t have succession plans in place and PE firms are actively acquiring these businesses, making it an opportune time to consider alternative succession plans.
How Global Factors May Influence Your Next Move
Economic conditions, government policies, and global trade shifts will play a role in your exit timing and business strategy.
- Tariffs & Trade Policy: If your business relies on global supply chains, consider that ongoing tariff battles could impact your bottom line. The World Trade Organization (WTO) reports that supply chain reconfigurations have driven a 23% rise in nearshoring activity since 2023. Evaluating domestic supply alternatives may increase your attractiveness to investors.
- 2025 Market Outlook: Experts anticipate a strong market in the second half of 2025. EY’s Global PE Survey found that 72% of firms expect increased deal volume as valuation gaps narrow. If you’re considering selling, preparing now can position you for the best exit terms later this year.
How Business Owners Can Maximize Their Opportunities in 2025
If you’re preparing to sell, raise capital, or bring on a strategic investor, here’s how to make your business more attractive to PE firms:
- Leverage AI & Automation – Implement AI-driven efficiencies in your operations to increase margins and showcase scalability.
- Position Your Business in a High-Growth Sector – IT services, blue-collar trades, and restoration businesses remain highly attractive to PE buyers.
- Structure a Strong Leadership Team – Investors favor businesses with well-aligned leadership teams, reducing transition risks post-acquisition.
- Prepare for Due Diligence – Ensure your financials are clean, processes are well-documented, and growth strategies are clear.
- Time Your Exit Strategically – With market activity heating up in late 2025, positioning your company for sale in Q3 or Q4 may maximize valuation.
Final Thoughts: See Your Business Through a New Lens
Private equity isn’t just about financial engineering—it’s about operational excellence, value creation, and long-term scalability. Even if PE isn’t the right path for you or your company, you can benefit immensely from evaluating your operations, processes, and people through the lens of a PE firm.
Take time in 2025 to assess your company from a new perspective. Identify inefficiencies, refine leadership structures, and enhance scalability—whether or not you plan to engage with private equity. Positioning your company for long-term success starts with strategic evaluation today.
