Preparing for a sale or investment process involves far more than achieving the highest valuation. Leadership, succession planning, growth strategy and transaction structure can all play a significant role in determining the best outcome.
In a recent interview with Graphite Partners, Partner Zack Goddard shared his perspective on the evolving M&A market and the key considerations for founders and management teams planning an exit.
Key takeaways
Challenging the private equity vs trade sale debate
Many founders assume that a trade buyer will always deliver the highest valuation. While strategic acquirers can often pay a premium, private equity (PE) investors are becoming increasingly competitive, particularly when a business closely aligns with their investment strategy.
It's also worth challenging the perception that a trade sale guarantees a clean and immediate exit. Many acquirers, particularly PE-backed platforms, place significant importance on management continuity, making succession planning a critical consideration regardless of buyer type.
Why valuation isn't the only consideration
While valuation will always be an important factor, there are other areas which need careful consideration. Cultural fit, sector expertise, ongoing incentivisation, future growth strategy, cash-out levels, legal terms, etc can all influence the right outcome for shareholders and management teams.
For businesses considering PE investment, alignment with an investor is particularly important. A shared vision for growth and confidence in the management team's ability to deliver that plan are often key ingredients for a successful partnership.
Preparation creates optionality
The businesses best positioned for a successful transaction are often those that begin preparing well in advance. Early succession planning, clear management responsibilities and robust financial and operational data can strengthen buyer confidence and provide greater flexibility throughout a process.
Although there is often a desire to move quickly once a transaction is underway, investing time in preparation can help maintain momentum, maximise competitive tension and support a smoother execution.
Just as importantly, founders should remain open-minded throughout the process. Objectives can evolve, and opportunities that may not have initially been considered can become increasingly attractive as discussions progress.
For a deeper dive into PE, trade sales, succession planning and transaction readiness, download Zack Goddard's full interview with Graphite Partners.
AUTHOR
Zack Goddard
Managing Director
Having previously spent four years at PwC, I joined the Clearwater M&A team in Manchester in 2017. I became a Managing Director in April 2025 and sit within the Industrials team, leading our UK efforts within the specialist Industrial and Infrastructure Services market. My recent notable transactions include the sale of JSM Group to TowerBrook Capital, the sale of OCU Group to Triton Partners, the sale of Toronto-based Hathorn Corporation to Halma Plc owned Mini-Cam and the sale of Road Traffic Solutions to Equistone-backed BUKO Group.
Knowledge
We don't hide behind jargon and complexity. Instead, we aim to open up the black box of M&A, illuminating the path with clear insight, simplifying the process, and delivering valuable information.
