With many company owners having the bulk of their net worth confined to the concentrated stock position of their business, a significant risk exists given their limited familiarity with transaction structures, valuation levers, or buyer types. As a result, they often begin exploring exit options too late, limiting the likelihood for an optimal outcome.

Fortunately, market conditions remain favorable for blue-collar business owners. Demand from both strategic acquirers and private equity firms remains strong, particularly for companies with attributes including recurring / maintenance-based revenue, scalability, and proven operational stability. Businesses generating $2–10 million or more in EBITDA are of particular interest, especially in fragmented sectors where buyers see opportunity for consolidation and growth.

The success of a transaction depends heavily on preparation and process. Steps like professionalizing financials, formalizing key processes, and reducing owner dependence can have a meaningful impact on value. Equally important is how the business is brought to market. Engaging only one buyer, often after receiving unsolicited interest may seem convenient, but typically leads to a suboptimal outcome. Without competition, owners lose leverage, often resulting in less favorable pricing, structure, and terms. In contrast, a thoughtfully managed competitive process introduces multiple credible buyers simultaneously, allowing the owner to compare offers not only on price, but for strategic alignment and fit. For many blue-collar business owners, considerations beyond the purchase price, including how the new majority owner will treat employees, management of the brand that the owner spent most of their lives creating, and alignment of a shared vision, heavily weigh in on selecting the ultimate partner.

For many blue-collar business owners, a sale transaction represents the most important financial and legacy event of their career. A competitive, well-run process not only drives better economics, but helps secure the best outcome for the company, its employees, and the owner’s legacy while optimizing purchase price and terms for owners.

Luke Horanski serves as a Vice President at Hyde Park Capital. Mr. Horanski comes from a blue-collar background, having previously worked in the construction field, uniquely positioning his extensive experience in mergers and acquisitions across a variety of blue-collar industries.

MIRICK

Languages

Particular expertise

General inquiries