Not All PE Buyers Are the Same: Here’s Why It Matters

Welcome back to the Mid Market Insider!

Today, we’re breaking down the different private equity playbooks buyers run from “strip and flip” to growth-focused strategies, and why understanding which one you’re signing up for matters more than most owners realize.

Know the Playbook Before You Sign the Deal

One thing I see business owners underestimate when selling is who they’re actually selling to.

Private equity buyers don’t just acquire businesses… they often run playbooks.

And understanding which one you’re signing up for can matter just as much as the price on the term sheet.

From the outside, private equity can feel like one category. In reality, there are very different approaches hiding behind the same label.

One common approach is often described as “strip and flip.”

These buyers focus on tightening operations quickly… cutting costs, improving margins, and standardizing processes with the goal of preparing the business for resale in a relatively short window.

This approach can work. But it often feels transactional. The emphasis is on efficiency and near-term financial performance, sometimes at the expense of flexibility or culture.

Another approach is growth-focused private equity.

These buyers invest in people, leadership, and systems. They look to expand products, enter new markets, and use capital and relationships to help the business scale faster than it could on its own.

That can feel like rocket fuel. It can also come with pressure… higher expectations, more reporting, and a faster pace of change.

Neither playbook is inherently right or wrong.

But they create very different experiences for the seller, the leadership team, employees, and the business itself.

Why This Matters

Too many owners focus only on price and assume everything else will work itself out after closing.

In reality, the buyer’s operating philosophy shapes what happens long after the wire transfer clears.

Knowing a buyer’s playbook helps you position your business appropriately, ask better questions during diligence, and set realistic expectations for life after the sale.

It also helps you decide whether the buyer is actually a good fit for your team and your long-term vision.

Selling isn’t just about maximizing the check.

It’s also about what happens next to the people who helped you build the business, to the culture you’ve created, and to the legacy you leave behind.

The best exits are often intentional.

They happen when owners are clear about what they want after the sale and choose buyers whose playbook aligns with that vision.

Understanding how a buyer plans to run your business isn’t optional.

It’s one of the most important parts of selling well.

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

📅 Next Week:

In next week’s edition, I’ll dig into a decision-making bias I see business owners struggle with all the time… choosing inaction because it feels safer than making the wrong move.

We’ll talk about why “not rocking the boat” is often the bigger risk, and how avoiding action can quietly limit growth, optionality, and outcomes.

Keep building,
Nick