Private Equity Groups - Good Liquidity for Family-Owned Businesses!

If you have a family-owned business with several family members working actively in the company, you need to explore how to keep peace in the family when it's time to exit. You may not feel that any other of the family members are capable of taking over and continuing the legacy.

Private Equity Groups, officially called PEGs, can be a great solution. There are over 2,700 PEGs in the U.S., up from just a couple hundred 20 years ago. These groups are constantly looking for good opportunities.

PEGs offer flexibility. They may purchase the entire company but also structure deals where they invest increments over time slowly acquiring ownership while family members get some money each year. They often will purchase your company as an "add-on" to enhance or complement one of their other companies.

Private Equity Groups do this for a living and have dealt with dozens of companies so you can learn a great deal through out the process. They can be short-term or long-term partners.

You may stay on and run the company for a year or more, or they may bring in their own management. All things are open for discussion with the right Private Equity Group.