Selling your business to private equity is often seen as the ultimate achievement for an entrepreneur. But it doesn’t happen by accident. It takes years of focus, strategic growth, and strong leadership.
When I sold NewAir—a company I built from my garage into an $80 million brand—I leaned on 11 core strategies. These aren’t just tips to sell your company. They’re principles for building a scalable, profitable business that attracts serious buyers.
Here’s what I learned.
1. Align Your Team Around a Shared Vision
Without alignment, you’re spinning your wheels. Your team needs to know where the business is going—and why it matters.
Your job as CEO is to define the “North Star” and over-communicate it. Every project, every decision should support that vision. The more aligned your team, the more efficient your operations—and the more attractive your business looks to private equity.
2. Build Products That Solve Real Problems
Great businesses solve real problems. Period.
Find your niche. Don’t chase crowded markets. Get close to your customer, understand their pain, and design a product that makes life easier for them. Stay involved in product development—even as you scale. Lose that connection, and you lose your edge.
3. Hire Slow, Fire Fast—Protect the Culture
Culture is everything.
Hire for values and attitude, not just skills. A bad cultural fit can slow down your business—and kill momentum. If someone doesn’t align with your mission, let them go. As CEO, you’re the chief culture officer. Protect it at all costs.
4. Increase Gross Margins by 1% Every Year
Margins are the lifeblood of a healthy business. Even a 1% improvement each year compounds over time.
Can you charge more? Can you negotiate better terms? Bake margin optimization into your culture. Private equity buyers look for businesses that understand—and protect—their margins.
5. Know Your Numbers
What gets measured gets improved.
Track the right metrics: revenue, margins, CAC, EBITDA. Go deeper—understand leading indicators too. Build dashboards. Review them often. The more you know your numbers, the better decisions you’ll make—and the stronger your negotiating position when it’s time to sell.
6. Create Systems That Scale Without You
If your business can’t run without you, it’s not a business—it’s a job.
Document processes. Automate where you can. Hire an integrator who’s obsessed with execution. The more you remove yourself from the day-to-day, the more valuable your company becomes to investors.
7. Solve Big Problems by Asking Better Questions
The quality of your questions determines the quality of your solutions.
Instead of asking “Why isn’t this working?”, ask “How can we 10x this?” Encourage your team to challenge assumptions. The answers are often already in your business—you just need to unlock them.
8. Train Leaders Who Think Like Owners
If your leaders don’t think like owners, they’ll never act like it.
Invest in their development. Give them responsibility—and hold them accountable. Consider equity incentives to align their vision with yours. Private equity firms want to see strong leadership teams that can thrive post-acquisition.
9. Stay Customer-Centric
Your customers are your best feedback loop.
Survey them. Talk to them. Watch their behavior. Let their insights guide product improvements. As CEO, don’t get too far removed—nothing beats hearing directly from your buyers.
10. Focus on Profitability, Not Just Growth
Revenue gets attention. Profit closes deals.
Don’t chase top-line growth at the expense of margins. Private equity firms want efficient, profitable businesses. Build with discipline. Control your costs. Know your profit drivers—and double down on them.
11. Plan for Your Exit Early
Start exit planning years before you think you need to.
Build a leadership bench. Clean up your financials. Streamline operations. When the time comes, hire expert advisors who know your industry and can maximize your valuation. A business that’s organized, prepared, and founder-independent is the one investors want.
Final Thoughts
These 11 lessons helped me scale, lead, and ultimately exit NewAir in a mid-eight-figure deal. If you’re thinking about growth or preparing for a sale—even years from now—these principles will get you there.
Looking for guidance? Let’s connect. I help founders scale smart, build margin, and exit on their terms.
