Is Private Equity Really As Bad As Everyone Says?

Welcome back to the Mid Market Insider!

Today, I’m breaking down why not all private equity firms are created equal—and how understanding the different types of PE buyers can help you choose the right buyer and maximize your leverage when it’s time to sell.

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If you spend enough time reading business headlines, scrolling LinkedIn, or talking to other business owners, you'll hear the same story over and over again:

Private equity buys a company… Costs get cut… Employees get fired… Customers get frustrated…

The business gets worse.

So naturally, a lot of owners looking to exit their businesses come to me with a pretty strong opinion: "Nick, I'd never sell to private equity."

But here's the problem… lumping all private equity firms together is like saying you'll never see a doctor because someone told you they had a bad experience with one.

Reality is much more nuanced.

Some firms are good… and some are bad.

And if you're planning to sell your business in the next one to five years, understanding what private equity is really like could be a big difference maker in how successful your exit is.

Because avoiding private equity will dramatically reduce your options.

So today, I want to pull back the curtain and reveal the three different types of private equity firms. And while some deserve their bad reputation… others absolutely don't.

In this video, I cover:

✅ The type of PE firm that’s responsible for most of the horror stories – and how to avoid them…

✅ Bigger isn’t always better. How fund size can completely change a firm's behavior, and the PE "sweet spot" that many owners overlook…

✅ Why many owners regret going with the highest bidder for their company.

And here’s the bigger lesson…

If you want maximum leverage when you eventually sell, then you need to understand how different buyers think long before you ever put your business on the market.

That’s all for today’s newsletter! Thanks for reading!

📅 Next Week:

In next week’s edition, I’ll break down why preparing your business for an exit is something you need to start years before you’re ready to sell.

And how identifying risks early, strengthening your operations, and building buyer confidence can give you more options, create a stronger negotiating position, and ultimately increase the odds of a successful exit.