Selling your business to private equity is often seen as the ultimate achievement for an entrepreneur. But it doesn’t happen by chance—it requires years of preparation, strategic growth, and leadership.
When I sold my business, NewAir, after growing it from my garage to $80 million in revenue, I relied on 11 key strategies. These lessons aren’t just about making your company sellable—they’re about making it scalable, profitable, and built to last.
1. Align Your Team Around a Shared Vision
If your team isn’t aligned, you’re just spinning your wheels. Your job as CEO is to define the “North Star” and over-communicate it until every person, project, and process points in the same direction.
2. Build Products That Solve Real Problems
Don’t just sell products—solve problems. Serve a niche where you can dominate. Stay close to product development, or you’ll lose touch with your company’s core value.
3. Hire Slow, Fire Fast—Protect the Culture
People are your biggest lever or liability. Hire for culture, not just competence. If someone isn’t a fit, act fast. Culture is how people work together—not perks.
4. Increase Gross Margins by 1% Every Year
Small margin improvements compound. Push for better pricing, negotiate with suppliers, and teach your team to think margin-first. It’s one of the fastest ways to increase enterprise value.
5. Know Your Numbers—Data Drives Decisions
Revenue, CAC, EBITDA, margins—track them all. Build dashboards. Focus on both lagging and leading indicators. The more clarity you have, the more confident your decisions—and the more attractive your company.
6. Create Systems That Scale Without You
If the business can’t run without you, it’s not a business—it’s a job. Build systems, document processes, and hire an operator. Private equity wants businesses that scale, not that depend on the founder.
7. Solve Big Problems by Asking Better Questions
Great leaders don’t have all the answers—they ask better questions. “Why isn’t this working?” becomes “How can this be 10x better?” Challenge assumptions. Let your team step up with solutions.
8. Train Leaders Who Think Like Owners
Your team should act like you—strategic, accountable, invested. Train them, empower them, and give them real ownership (sometimes literally). A team that thinks like owners builds long-term value.
9. Stay Customer-Centric—Their Feedback is Gold
Customer feedback isn’t a task—it’s a strategy. Talk to them, survey them, listen to them. Your best insights don’t come from spreadsheets—they come from your customers.
10. Focus on Profitability, Not Just Revenue
Revenue gets attention. Profit gets deals done. Improve margins, cut unnecessary spend, and build a business that doesn’t just grow—it performs.
11. Plan for Your Exit Before You Think You Need To
Private equity exits don’t start at the negotiation table—they start years earlier. Build clean books, a strong team, and a company that runs without you. Then bring in the right advisors to guide the process.
Final Thoughts
These lessons helped me scale NewAir and exit on strong terms. If you’re looking to do the same, it starts with building a real business—not just a big one.
If you’re a founder aiming to scale, improve margins, or plan your exit—let’s connect. The right strategies can take you further, faster.
