Private Equity in M&A: What Every Business Owner Should Know

Private equity (PE) often raises important questions among business owners considering investment or a potential sale. In this video, Michael Dennison from IMAP UK addresses some of the most common concerns, offering clarity on how PE works in the mid-market M&A space and what it really means for entrepreneurs.

How Private Equity Evaluates Mid-Market Companies

Private equity firms don’t invest randomly - they look for well-managed companies with strong fundamentals and clear potential for growth. In the mid-market, PE investors want to understand not only the financials but also the quality of the management team and the opportunities available to scale. Their goal is to partner with businesses that can achieve the next level of development with the right capital and strategic support.

Do Business Owners Lose Control with Private Equity?

One of the biggest worries business owners have is losing control after a PE investment. While every deal structure is different, many PE investments are designed to keep existing management in place. Owners often remain involved in the business and continue to drive the company forward, with PE firms providing additional resources, governance, and expertise. Rather than replacing management, the aim is to strengthen it.

Private Equity Goals: Beyond Just Financial Returns

Although generating strong financial returns is always a driver, PE investors are also focused on creating long-term value. This can mean expanding into new markets, improving operational efficiency, or developing new products and services. For the investor, success is defined not just by profitability, but by building a stronger, more competitive company that will be attractive in the future - either to strategic buyers or in a secondary sale.

How Private Equity Supports Business Growth

Private equity provides more than just funding. Investors can help businesses accelerate growth by offering strategic insights, access to global networks, and professional management practices. For many mid-market companies, this partnership allows them to compete at a higher level, expand faster, and achieve goals that might have been out of reach without additional support.

Are you considering a Private Equity investment?

Private equity plays an increasingly important role in mid-market M&A, offering business owners capital, expertise, and partnership opportunities. As Michael highlights, the right PE investor can help a company unlock its potential while ensuring management and ownership remain central to the growth journey.

Watch the video HERE. You can also reach out to us for more information at info@imap.com