When it comes to selling your business, it’s easy to assume that the buyer sitting across the table holds all the power. But in the world of Private Equity (PE), that’s not quite the case.

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PE firms—also known as General Partners (GPs)—may lead the deals, but they answer to a more powerful force: their investors, the Limited Partners (LPs). And those investors have their own expectations around how capital should be deployed, managed, and—most importantly—returned.

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This dynamic has a significant impact on what the exit process looks like for business owners. And understanding it can give you a serious edge.

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What Makes a Fund Successful?

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For PE firms, success isn’t just about closing deals. It’s about delivering results that prove to LPs that they can:

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• Invest capital quickly (speed of deployment)
  
  
• Deliver strong returns (measured by DPI—Distributions to Paid-In Capital)
  
  
• Achieve those returns fast (Internal Rate of Return, or IRR, which improves when exits are quicker)
  
  

No fund performance? No future fund. No future fund? No business.

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That’s why PE buyers go through extensive due diligence—often making the process 4 to 5 times more intensive than a typical trade sale. It’s not bureaucracy for the sake of it. It’s about building confidence that the investment will not only be sound but also outperform market benchmarks.

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Due Diligence Isn't a Barrier

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The good news? All that effort PE firms put into due diligence often becomes the basis for value creation. These are firms trained to take insight and turn it into impact. They’re not just identifying weaknesses—they’re actively designing strategies to unlock growth, efficiency, and scale.

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In short: they need to do it, and they’re very good at it.

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Why It Matters for Your Exit

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If you’re a business owner considering your exit, understanding these dynamics helps you make better decisions. The type of buyer you choose—whether it’s PE, trade, or other financial investors—has huge implications for process, valuation, and outcomes.

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At The Implicit, we help you decode these differences and chart the right path. Our approach doesn’t just connect you with capital—it aligns you with the right capital, based on your business goals, legacy concerns, and desired outcomes.

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Start Your Exit on the Right Foot

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Exit planning isn’t just about picking a date. It’s about preparing your business for scrutiny, identifying the right kind of buyers, and shaping a narrative that resonates with investors and acquirers alike.

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If you want to explore how our framework can help you begin this journey—and increase your chances of achieving the exit you deserve—get in touch.

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