Private equity has a math problem: too many PE firms and not enough companies to buy.
“Today’s truly hot commodities are America’s unheralded mid-market businesses, specifically those we call the “Upper Middle Market”—those businesses between $50 million and $1 billion in revenue ….There are an estimated 18,000 private equity firms in the U.S., up nearly 60 percent in just the last five years. At the same time, there are only ~49,000 upper-middle market businesses. Private equity already owns around half of the available pool. Many of the rest are not (and may never be) for sale.”
Large numbers of Vistage members are in the mid-market. If you’re not in Vistage, you may also be one. Either way, congratulations on being in demand! “So whether an exit to private equity may or may not be in your future, it pays to get your organization in top shape.”
