Anonymous wrote:They wouldn’t have scheduled a 7 hour meeting or dinner unless you were someone they felt they need.

Yes they would. These 7 hour meetings are probably covering every aspect of the business. Your products/services, customers, sales, operations, financial statement review, future year projections.

It's not that they think you are anything special, but as a part of the senior management team, then you in theory should be able to knowledgably talk about all these different areas.

It's also typical that an owner won't want more than maybe 5 people in total to know about the acquisition until a binding agreement is signed...either a Purchase Agreement or for companies this size, an actual closed transaction.

Which isn't to say they want to get rid of you, but they could easily have zero opinion of you...so you of course want them to come away impressed.

Anonymous wrote:Which firm? It does matter as some PE firms are fine to work for and as a PP laid out, could be very lucrative for you if you stay to the next transaction. 25M is really small so they will likely need to at least double that revenue.

You are either a platform company (usually very good for existing senior management) or an add-on acquisition (typically bad).

You want figure out where you fall. If a platform, then the PE decided they wanted to enter this business and your company is well positioned as their entry point. If you are an add-on, then they already have the platform management and it's easy to get rid of the senior management of an acquired company and save $$$s. You don't need two CFOs or two COOs or two CTOs, etc.

Your best bet is to talk about all your customer relationships. In theory, a good PE firm isn't going to get rid of the top people that have the customer relationships. It doesn't make sense to save some $$$s just to jeopardize your revenue.

Or who knows what they need to know and then they can bag you.

They wouldn’t have scheduled a 7 hour meeting or dinner unless you were someone they felt they need.

Anonymous wrote:It's a bit surprising to me that the PE firm would buy the company prior to speaking with C-level management.

Is it possible that the owner has signed an LOI/term sheet and the PE folks are now doing due diligence (which includes speaking to continuing management)?

Going in today to meet them. You are right - they are in due diligence and speaking to 2 people (including me).

Anonymous wrote:If you are a "key employee" when a PE firm buys the company, it can potentially be very lucrative for you, if you are willing to stick it out for a few years post-transaction and especially if you are willing to wait it out until the PE firm eventually sells everything. You will probably need to work a lot to prove yourself and it won't be easy, but it could potentially be your last job, if everything works out. On the other hand, if you are not a "key employee", I would probably be looking to exit.

The fact that the PE firm wants to meet with you likely means that they want to interview you to see if you are a "key employee" that they think is needed to move the company forward.

Best of luck.

Yes. DH went through something similar so you won’t necessarily get axed. Learn some negotiation tips though

Which firm? It does matter as some PE firms are fine to work for and as a PP laid out, could be very lucrative for you if you stay to the next transaction. 25M is really small so they will likely need to at least double that revenue.

Is this like a doctor's office joining a firm that owns 100 offices, or a unique company joining a firm that owns a bunch of random business?

It's a bit surprising to me that the PE firm would buy the company prior to speaking with C-level management.

Is it possible that the owner has signed an LOI/term sheet and the PE folks are now doing due diligence (which includes speaking to continuing management)?

Anonymous wrote:I mean, you probably won’t have a lot of options. I would spend some time thinking about what you’ll do and how you’ll manage if they eliminate you. Do all your panicking about that before this meeting so you can be calm and confident.

Then in the meeting, just have an open mind and treat it like a job interview. Be honest and try to have smart takes, but don’t shit talk anyone.

It is what it is and you are what you are so just put your best foot forward and see what happens. Don’t sign anything.

I agree with most of what this poster said, but disagree with being 100% honest. Be strategic with everything you say - don’t lie, but you may need to withhold information if it could hurt you in the future.

If you are a "key employee" when a PE firm buys the company, it can potentially be very lucrative for you, if you are willing to stick it out for a few years post-transaction and especially if you are willing to wait it out until the PE firm eventually sells everything. You will probably need to work a lot to prove yourself and it won't be easy, but it could potentially be your last job, if everything works out. On the other hand, if you are not a "key employee", I would probably be looking to exit.

The fact that the PE firm wants to meet with you likely means that they want to interview you to see if you are a "key employee" that they think is needed to move the company forward.

Best of luck.

The fact that you are in the loop is great news. I was on the outside when my employer got bought by PE and was quickly laid off like most of the employees.

Do your homework, be prepared, be open minded and be aware of your options.
"Where do you see yourself a year from now" can be a trite interview question but actually is spot-on in this case.

condolences

I mean, you probably won’t have a lot of options. I would spend some time thinking about what you’ll do and how you’ll manage if they eliminate you. Do all your panicking about that before this meeting so you can be calm and confident.

Then in the meeting, just have an open mind and treat it like a job interview. Be honest and try to have smart takes, but don’t shit talk anyone.

It is what it is and you are what you are so just put your best foot forward and see what happens. Don’t sign anything.

I am in the C-level of a small company ($25M rev). The equity owner informed me that he has sold to a PE firm that is going to move us into a larger company. The PE folks are interested in speaking with me and have scheduled a 7-hour meeting later this week, which will include dinner. Never been part of this before - part of me wants to keep an open mind, but also know from the industry that PE firms just care about the bottom line. Has anyone else gone through this and can share their experience? Any advice on the meeting - what questions to ask, traps to look for, etc? Apparently, they want to offer stock options, but the owner did not tell me much. Obviously, I was blindsided and working through the uncertainty on this, but any advice would be welcome....