The Situation
- Bob Smith is the owner and CEO of a successful family business and his children have decided to pursue other career paths and will not be joining him in the business
- Bob enjoys his work and sees excellent growth opportunities, but most of his net worth is tied up in the business and he would like to have financial security outside of the business and help with a succession plan
- For Bob, partnering with a private equity firm is an attractive option, enabling him to take chips off the table, continue to run the company now with his partner’s capital to grow the business, and eventually benefit from a second sale in 3–7 years