Guide to Selling Your Company: PE vs. Strategic Acquirers

This guide explains the key differences between selling to private equity versus strategic acquirers, covering acquirer personas, due diligence requirements, post-close operational changes, and current valuation multiples for software businesses. The article emphasizes that Rule of 40-compliant businesses command higher valuations (10-25x EBITDA for PE), while strategics may offer higher multiples through undefined synergies, though their deal activity has declined. Critical preparation areas include customer cohort analytics, sales funnel attribution, and unit economics documentation.