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Build It To Sell It

The Truth About Private Equity: What Business Owners Need To Know Before Selling

📅 August 4, 2026 ⏱️ 51:45 🎤 Lance Bachmann, Eric Wickland

Chapters

Click to jump to section

  • 0:02
    Company, Not Communism
    Eric Wicklund introduces Spaceside Equity's philosophy: they are a 'com' (company), not a 'org', focusing on profitable growth and shareholder value.
  • 0:57
    The Mission of Build It To Sell It
    Lance Bachmann explains the mission of Build It To Sell It: to help contractors scale businesses that are actually worth selling one day.
  • 4:10
    PE Myth: Cost Cutting Only
    Eric debunks the myth that private equity firms only cut costs, explaining that corporate M&A is more likely to do so, and PE prioritizes top-line growth.
  • 4:48
    Operational Experience Matters
    Eric strongly refutes the idea that operational experience doesn't matter in investing, emphasizing that value creation happens after the deal close through operational knowledge.
  • 5:28
    Understanding Financials
    Lance and Eric discuss the critical importance of business owners understanding their financials, despite it being a common area of weakness.
  • 6:19
    Why PE Firms Borrow Money
    Eric explains why private equity firms often use leverage, detailing how it can maximize return on equity, but also highlights Spaceside's more conservative approach to avoid high debt service.
  • 7:18
    Choosing the Right Partner
    Lance and Eric discuss the importance of choosing the right investment banker and buyer, emphasizing that the highest LOI isn't always the best option due to potential risks and the need for a good working relationship.

Speakers

L
Lance Bachmann
Host
E
Eric Wickland
founder of Spaceside Equity

Key Takeaways

✦

Prioritize profitable growth, not just growth. Expanding unprofitable segments will lead to more negative returns; focus on sustainable and profitable growth.

✦

Understand your financials thoroughly. Knowing your P&L, cash flow, and working capital is crucial for making informed decisions and proving your business's value to potential buyers.

✦

Build a business that can run without you. If your company is too dependent on your presence, it's a job, not a sellable asset; implement strong systems and leadership.

✦

Rationalize your revenue portfolio. Regularly analyze customer profitability and optimize your product/service offerings to maximize margins and ensure you're not losing money on certain clients or services.

✦

Choose your partners wisely. When selling, don't automatically jump at the highest offer. Consider the long-term fit with the buyer, their history, and your ability to work with them, especially if you plan to roll over equity.

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