Issue No.2 Sale Or PE? Which Will Deliver The Best Value?

The choice for those outside the corporate finance community, is often shrouded in mystery. Where will I get the best price? What will each of these deals mean in practice? Many experienced private business owners don't have previous experience of different deal types, and sometimes don't like to ask the obvious questions.

Trade sale is typically more straightforward, with cash on completion, supported by deferred money, or earn out. However, the buyers will typically impose their own culture, and often management's, which can be disruptive for both sellers and employees. If there are synergies and growth opportunities however, a trade deal can provide management and finance, and increase the target's value.