Q&A: Buyer Behavior in Lower Mid-Market M&A

Selling a business in the lower mid-market? Here's what you need to know in 2025:

• Market Shift: After the aggressive bidding of 2021–2022, the M&A market has "recalibrated." Buyers are now more selective, focusing on businesses with stable margins, recurring revenue, and clear growth potential.

• Who’s Buying: Private equity firms, family offices, independent sponsors, search funds, and individual operators are active players. Family offices now account for 30% of deals, up from 16% in 2024.

• Key Trends: Higher interest rates have tightened bank lending, pushing buyers toward alternative financing like private credit. This has also led to creative deal structures, including earnouts, seller notes, and equity rollovers.

• Valuation Multiples: Smaller deals ($3M–$5M EBITDA) average 6.4× EBITDA, while larger transactions ($10M+ EBITDA) reach 7.7×–8.1×.

• Industries in Demand: Healthcare services, specialty contracting (e.g., HVAC), and subscription-based business services are top targets due to predictable demand and cash flow.

For sellers: Prepare your business 12–24 months in advance. Focus on clean financials, a strong management team, and a clear growth plan. Buyers are prioritizing businesses that can operate independently of the founder and demonstrate resilience during economic uncertainty.

Pro Tip: Work with experienced advisors to navigate buyer expectations, optimize deal terms, and maximize your exit value.

The Lower Mid-Market and Current Buyer Landscape

What Defines the Lower Mid-Market?

In the U.S., the lower mid-market is typically defined by businesses with enterprise values between $10 million and $250 million. These companies often generate annual revenues ranging from $10 million to $150 million, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) falling between $2 million and $25 million. [1][2]

Within this segment, a particularly competitive niche exists for businesses producing $1 million to $3 million in EBITDA. Buyer demand in this range is especially high. By comparison, Main Street businesses usually bring in less than $5 million in revenue and under $1 million in EBITDA, while upper middle market companies exceed $250 million in enterprise value and $50 million in EBITDA.

Lower mid-market firms are often founder-led or family-owned, with small leadership teams and minimal institutional governance. While they require more sophisticated deal structures and due diligence than smaller Main Street operations, they tend to be less complex than upper middle market targets.

God Bless Retirement focuses squarely on this space, targeting businesses with EBITDA under $25 million. This makes it an ideal partner for owners considering retirement, succession planning, or diversification. The firm’s expertise in navigating complex sale processes has drawn a diverse group of buyers, each bringing unique strategies to the table.

Who Buys Businesses in This Segment?

The lower mid-market attracts a wide array of buyers, each with distinct goals, funding sources, and approaches to acquisitions.

• Private equity funds: These buyers often look for platform investments in businesses with mid-single-digit EBITDA. They frequently focus on industries like business services, healthcare, and specialty manufacturing, aiming to drive growth through operational improvements and bolt-on acquisitions over a 3–7 year holding period. [2]

• Independent sponsors: These dealmakers secure capital on a deal-by-deal basis and are responsible for about 30% of transactions in this segment. They typically target companies with EBITDA between $1 million and $5 million, taking an active role in management. [4]

• Family offices: Gaining prominence in recent years, family offices accounted for roughly 30% of deals in this segment in 2025 year-to-date, up from 16% in 2024. With longer investment horizons and more flexible return expectations, they prioritize steady cash yields, capital preservation, and building wealth across generations. [4]

Across all buyer types, certain criteria consistently stand out: stable cash flow, resilient margins, recurring or contracted revenue streams, and clear opportunities for operational improvement. Many buyers are particularly drawn to businesses in the $1 million to $3 million EBITDA range. [2]

How Has the Buyer Market Changed Since 2024?

The lower mid-market has undergone significant shifts since 2024. After the aggressive bidding wars of 2021–2022, the market has entered a phase of recalibration. In the first quarter of 2025, U.S. M&A activity dropped by approximately 9–14% compared to the previous year, signaling a more selective and strategic investment climate. [1]

By the third quarter of 2025, EV/EBITDA multiples for lower mid-market deals recovered to 9.4×, up from 7.3×, reversing a multi-quarter decline. Smaller deals - those in the $3 million to $5 million EBITDA range - traded at roughly 6.4×, while larger transactions saw multiples rise to 8.1×. [2][6]

Higher interest rates and stricter bank lending policies have reshaped deal-making strategies. Private credit has stepped in to fill funding gaps, and anticipated Federal Reserve rate cuts in 2025 have improved buyer sentiment, even as uncertainties persist. [1]

To adapt, buyers are increasingly using alternative deal structures like earnouts, seller notes, rollover equity, and contingent payments to bridge valuation gaps and mitigate risks. Due diligence has also become more rigorous, with buyers now requiring detailed quality-of-earnings reports, comprehensive financial disclosures, and in-depth analyses of customer and supplier relationships before finalizing deals. [1][2]

The composition of buyers has shifted as well. Family offices have emerged as the largest buying group, with independent sponsors also playing a growing role. Meanwhile, search funds and individual investors are becoming more active participants. [4]

For sellers, this evolving landscape demands careful preparation. Despite a drop in deal volume, buyers are prioritizing businesses with solid documentation, strong second-tier management teams, and GAAP-compliant financials. Sellers are often expected to commit to longer handover periods or consulting roles post-sale. Buyers are now more disciplined, focusing on businesses with resilience, growth potential, and sound operational fundamentals. Understanding these buyer profiles is crucial for shaping a successful sale strategy.

Major Trends Shaping Buyer Behavior

How Economic and Financing Conditions Affect Buyers

The rising cost of capital has fundamentally shifted how buyers approach lower mid-market deals. Since 2024, higher interest rates and tighter bank lending have prompted buyers to take a closer, more cautious look at a target's financial performance. While deal volume has dipped by low double-digit percentages year over year, this reflects a strategic recalibration rather than a market downturn. Buyers are now reassessing risks with a sharper lens. [1]

When interest rates rise, buyers need to ensure that a target company can comfortably manage its debt. This has led to stress-testing cash flow, analyzing debt service coverage ratios, and running worst-case scenario models before committing capital. As a result, businesses with steady, predictable earnings have become more attractive, while those with volatile cash flows or slim margins face tougher scrutiny. In many cases, buyers either walk away or demand steep price cuts.

Private credit has stepped in to fill the financing gaps left by traditional banks. Nonbank lenders are actively funding deals but with stricter covenants, higher costs, and more stringent performance requirements. Buyers relying on private credit must demonstrate that a target business can sustain a leveraged capital structure, placing even more emphasis on operational stability and strong margins. [3][5]

These financing challenges are also reshaping deal structures. Earnouts tied to future EBITDA or revenue milestones are becoming more common and larger in scale. Seller notes are appearing more frequently, and buyers are asking sellers to roll over more equity, especially in deals under $10 million in EBITDA. This approach shifts some of the post-closing risk onto sellers. [1][3]

For sellers, the takeaway is clear: your financials need to hold up under intense scrutiny. Buyers will dive deep into working capital requirements, customer concentration, forecast accuracy, and the assumptions behind your projections. They’ll also push for tighter Material Adverse Change (MAC) clauses and financing outs to protect themselves if conditions worsen during the transaction process. Transparent, well-documented financials - preferably with reviewed or audited statements and clear EBITDA adjustments - make it easier for buyers and their lenders to back your business. [1][2][3]

Engaging an advisor who understands today’s credit markets can make a big difference. Firms like God Bless Retirement, which specialize in businesses with EBITDA under $25 million, can help position your company to meet current lender expectations. They coordinate with lenders, CPAs, and private equity groups to anticipate questions and package your business effectively. [3]

These financing shifts are also influencing which industries are most appealing to buyers.

Which Industries Attract the Most Buyer Interest?

Buyers are gravitating toward sectors with predictable demand and stable cash flows. Healthcare services remain a top priority. From home health agencies to healthcare IT services, these businesses are seen as recession-resistant and supported by demographic trends. [3][6]

Specialty and trade contracting is another area drawing significant interest. HVAC companies, roofing contractors, building services, and facility maintenance firms are highly sought after because they provide essential services and offer opportunities for regional consolidation. Buyers often acquire a larger platform company and add smaller operators in nearby markets, creating value through roll-ups and operational efficiencies. [3][6]

Business and consumer services with recurring or contract-based revenue are also in demand. This includes IT managed services, subscription-based SaaS businesses, and essential B2B services like janitorial or security services. These companies provide a clearer view of future revenue, making it easier for buyers to forecast cash flow and secure financing. [3][6]

What ties these sectors together is predictability. Buyers are prioritizing businesses with long-term contracts, recurring revenue streams, and non-discretionary demand. Companies with these characteristics tend to face less revenue volatility, making them easier to finance and more attractive in competitive bidding situations. [3][6]

Market data backs this up. Businesses with a significant share of recurring revenue are commanding higher EBITDA multiples and attracting more aggressive offers. Private equity firms and independent sponsors are particularly focused on service-oriented companies that can serve as platforms for future acquisitions. These businesses often see better terms, including higher leverage and lighter covenants. [2][6]

If your business falls into one of these high-demand sectors, highlight the recurring nature of your revenue and the essential nature of your services. For companies in more cyclical industries, consider transitioning to longer-term contracts or service agreements in the months leading up to a sale.

These trends in buyer preferences are also driving changes in acquisition strategies and performance benchmarks.

How Buyer Priorities Are Changing

In the lower mid-market, there’s a noticeable shift toward smaller acquisitions and add-on deals. Buyers are focusing more on businesses in the $1 million to $3 million EBITDA range, where competition has become particularly intense. Independent sponsors, family offices, and search funds are very active in this space, and private equity firms are using these smaller deals to build out their existing platforms. [4]

Why the focus on smaller deals? They require less upfront equity, are easier to finance with private credit, and can be integrated into larger platforms to create synergies. For private equity groups executing roll-up strategies - such as consolidating regional service providers or niche healthcare practices - these smaller deals are essential building blocks for value creation. [3][4]

As financing conditions remain tight, buyers are favoring nimble, smaller acquisitions that can easily plug into existing platforms. This creates opportunities for businesses in the $1 million to $5 million EBITDA range, but it also raises the bar. Buyers expect these businesses to be ready for integration, with documented processes, established systems, and a culture that aligns with larger platforms. Partial sales or phased exits can also make a deal more appealing. [3][4]

Buyers are placing a premium on high-margin, defensible profit streams. Topline growth alone isn’t enough; they want to see durable margins and understand the quality of earnings. This means dissecting EBITDA to separate sustainable operating income from one-time adjustments or discretionary expenses. Buyers are analyzing profits at the customer, product, and project levels to pinpoint where value is truly generated. [1][2]

Stress-testing has also become a standard practice. Buyers want to know how your business would perform if you lost a major customer or faced a modest recession. Companies that can demonstrate consistent margins, disciplined pricing, and cost controls across economic cycles are rewarded with better valuation multiples and less aggressive earnout terms. [1][3]

For sellers, this means preparing well in advance. Clean up your financials, separate owner perks from operating expenses, and document your pricing strategy. Highlight low customer churn and, if applicable, showcase how your business has weathered past economic challenges. [1][2][3]

The focus on growth potential and scalability has also intensified. Buyers want to see clear growth levers, whether it’s expanding sales capacity, launching new services, or entering adjacent markets. They’re looking for businesses with realistic, data-backed growth plans. [2][3]

Improving your systems - like CRM, ERP, and job costing software - and formalizing management roles can make your business more appealing as an add-on or platform acquisition. Reducing owner dependence is especially critical. Buyers want assurance that the business can thrive and grow without daily involvement from the founder. [3][4]

Strategic buyers have increased their M&A budgets by 34% for the 2025–2026 planning cycles, signaling strong demand. [7] However, that demand is selective. Buyers are prioritizing businesses that combine operational stability with clear growth opportunities, and they’re willing to pay a premium for companies that check both boxes. If you’re planning to sell in the next year or two, focus on building growth levers and presenting a credible, actionable path forward for potential buyers.

Different Buyer Types and Their Deal Approaches

The lower mid-market is a vibrant space, attracting a variety of buyers with unique goals, funding sources, and deal structures. Knowing who these buyers are and how they approach deals can help you prepare your business, set realistic expectations, and negotiate terms that align with your exit strategy.

Private Equity Firms and Independent Sponsors

Private equity (PE) firms and independent sponsors are key players in the lower mid-market. Independent sponsors, for instance, close about 30% of deals on Axial's platform, often raising equity from family offices and high-net-worth individuals while taking a more hands-on role post-acquisition[4]. Traditional PE firms, on the other hand, typically target businesses with $3–10 million in EBITDA, using a mix of committed funds and debt financing. For context, businesses in the $3–5 million EBITDA range tend to sell for an average of 6.4× EBITDA, while larger deals above $10 million fetch multiples between 7.7× and 8.1× EBITDA[2]. Total enterprise values for PE transactions have ranged from $12.9 million to $17.1 million in recent years, with 2025 deals averaging $14.2 million[4].

Both PE firms and independent sponsors often use leveraged buyouts, combining senior and subordinated debt with equity. Deal terms frequently include seller rollover equity, earnouts, or seller notes to bridge valuation gaps[2][3]. Many are turning to private credit lenders to close financing gaps, though these loans often come with stricter terms and higher costs.

Expect detailed, data-driven negotiations with rigorous due diligence. Buyers will scrutinize normalized EBITDA, working capital, customer concentration, and margin stability. They’ll also focus on legal aspects like representations, warranties, indemnities, and performance-based deal components[3][8].

To attract these buyers, highlight recurring or contracted revenue, stable margins, and clear growth opportunities - whether that means expanding sales, launching new services, or pursuing acquisitions[2][3]. Keep your financials clean and GAAP-compliant, with at least three to five years of well-documented history. A strong second-tier management team is also a major asset.

Red flags include high customer concentration, inconsistent financials, unrecorded liabilities, undisclosed related-party transactions, or an overreliance on the current owner with no succession plan[1][3]. Addressing these issues upfront, ideally with the help of a specialized advisor like God Bless Retirement, can reduce the risk of last-minute renegotiations or deal collapses.

Family offices and individual buyers take a different approach, focusing less on structured equity and leverage and more on long-term value.

Family Offices and Individual Buyers

Family offices are becoming increasingly active in the lower mid-market, accounting for 30% of deals on Axial's platform in 2025, up from 16% in 2024[4]. Unlike PE firms, which face pressure to exit within a set timeframe, family offices often have longer or even indefinite holding periods. Their priorities include capital preservation, steady cash flow, and multi-generational value creation[4][3].

In negotiations, family offices often emphasize continuity for employees, preserving the seller’s legacy, and building a relationship fit. They may offer flexible deal structures, such as higher rollover equity, patient earnouts, or conservative leverage to meet seller goals. While their timelines are more flexible, thorough due diligence and a well-presented business remain critical.

Individual buyers, including first-time owner-operators, typically target businesses with $1–3 million in EBITDA. They often plan to take on a full-time role in the business[4]. Financing for these buyers usually involves SBA-backed or conventional bank loans, combined with personal equity. Seller financing, such as promissory notes or partial equity rollovers, is common and helps align interests while meeting lender requirements[4].

However, individual buyers may lack institutional resources, which can slow down the process or lead to renegotiations if challenges arise[3]. Working with an experienced broker or advisor, like God Bless Retirement, can streamline the process and ensure deals are structured to meet SBA and bank requirements.

Meanwhile, search funds and strategic acquirers bring yet another set of priorities to the table.

Search Funds and Strategic Acquirers

Search funds and strategic buyers focus on stable businesses with recurring revenue. Search funds are backed by small groups of investors who finance an entrepreneur’s search for a business to acquire and operate. They typically target businesses in the $1–5 million EBITDA range and use modest leverage while planning structured transitions that often last six to twelve months[4][3]. Common targets include B2B services, route-based services, specialized manufacturing, and healthcare services[4][3]. Their negotiations are collaborative but detailed, with particular attention to governance, incentive plans, and downside protections.

Strategic buyers, by contrast, are usually companies in the same or related industries. They pursue acquisitions to expand their market reach, customer base, talent pool, or capabilities. These buyers often aim to capture synergies by reducing overhead, cross-selling to a wider customer base, or consolidating purchasing power[3][8]. They may pay premium multiples for businesses that align closely with their strategic goals, though they’ll demand discounts if integration risks are high. Financing often involves corporate cash, existing credit lines, or stock, and while their deal processes can be faster, they’re generally less flexible than financial buyers.

Understanding these buyer strategies can help sellers align their pricing, due diligence, and transition plans with current market expectations.

Meeting Current Buyer Requirements

Preparing to meet buyer expectations is no small task - it requires a focused effort over 12 to 24 months. The lower mid-market has become more selective, with buyers prioritizing detailed due diligence. To stand out, sellers must present organized financials, a clear growth plan, and realistic valuation expectations. Here's how to get your business ready for today's market demands.

How to Get Your Business Ready for Sale

Buyers are looking closely at stable revenues and strong management. To meet these expectations, you’ll need a comprehensive plan to address weaknesses, highlight strengths, and ensure your business is ready for scrutiny.

Start by preparing three years of clean, GAAP-compliant financials with detailed monthly breakdowns. Any anomalies - like one-time expenses or pandemic-related impacts - should be clearly explained and supported by documentation. Normalize your EBITDA by separating owner-related expenses and providing detailed justifications for every adjustment. A sell-side Quality of Earnings (QoE) review can streamline buyer due diligence and reduce the risk of renegotiations.

Document your revenue streams, emphasizing recurring or contract-based income, such as subscriptions or long-term service agreements. Buyers value predictable cash flow and customer retention. If your business relies heavily on a few customers, work to diversify your client base or demonstrate the strength of key contracts. Include data on renewal rates, contract terms, and any barriers to customer churn.

Strengthening your management team is equally essential. Buyers often prefer businesses that can operate without heavy reliance on the founder. Develop a second layer of leadership - such as operations managers or sales directors - who can handle daily responsibilities. Formalize job descriptions, document processes, and consider offering incentives to retain key employees through the transition. Family offices and independent sponsors, which accounted for about 60% of deals on the Axial platform in 2025, place significant value on management depth and operational independence.[4]

You’ll also need a credible growth plan. Prepare a three- to five-year forecast based on historical performance and market trends. Identify actionable growth opportunities - like entering new markets, expanding product lines, or optimizing pricing - and quantify their potential impact.

For instance, a regional HVAC services company with $3 million in EBITDA spent 18 months preparing for sale. They hired a CFO to clean up financials, implemented a CRM system to track recurring contracts, and promoted a long-time operations manager to COO. These efforts led to a competitive bidding process and a sale price above the typical 6.4x EBITDA for businesses of that size.[1][2][3]

Finally, eliminate potential deal risks. Resolve legal, tax, and operational issues before going to market. Ensure licenses, contracts, and intellectual property registrations are current and well-organized. Review key agreements for change-of-control clauses and renew important contracts in advance. Address operational weaknesses, whether by renegotiating vendor terms, upgrading IT systems, or diversifying your supplier base. This preparation ensures due diligence doesn’t uncover surprises that could derail the deal.

Why Professional Support Matters

In today’s market, buyers expect a high level of preparedness, making professional guidance invaluable. The transaction process involves many moving parts - valuation, buyer identification, due diligence, legal documentation, and negotiation. A skilled business broker or M&A advisor can help position your business effectively and reduce the risk of costly mistakes.

An experienced advisor will highlight what matters most to buyers: strong cash flow, recurring revenue, scalability, and defensible margins. They’ll create an investment memo, prepare for due diligence, and run a competitive process to boost valuation. With interest rate uncertainty and election-year volatility influencing buyer behavior, having an advisor who understands these dynamics is critical.

God Bless Retirement, a family-led brokerage specializing in businesses with under $25 million in EBITDA, provides this kind of support. Their NACVA-certified experts deliver certified valuations accepted by buyers, banks, and the IRS - avoiding inaccurate estimates that could cost you. Beyond valuation, they manage the entire transaction process with confidentiality, leveraging a network of private equity firms, family offices, and strategic acquirers. Their team of CPAs, financial planners, and due diligence specialists ensures a smooth process, charging a modest upfront fee and a success fee upon deal closure.

Planning Your Sale Timeline

Timing is as critical as preparation. A lower mid-market sale typically takes 12 to 24 months from preparation to closing. The first 6 to 12 months should focus on getting the business "sale-ready" by cleaning up financials, strengthening management, and addressing weaknesses. Marketing and negotiations can take another 6 to 12 months, depending on market conditions.

Start planning 18 to 24 months in advance to address issues and seize favorable market opportunities. In 2025, buyers remain cautious due to interest rate uncertainty and economic volatility, but businesses with strong cash flow continue to attract interest. Analysts predict the Federal Reserve will cut rates later in the year, potentially creating a favorable market for sellers. Aligning your timeline with these conditions could result in better valuations and more competitive offers.[2][3][7]

Strategic buyer budgets for 2025–2026 have increased, and aging business owners in the U.S. mid-market are driving strong sell-side activity. Tailor your approach to your target buyers. Private equity firms and independent sponsors value scalable systems and clear performance metrics. Family offices and individual buyers prioritize stability and operational improvement opportunities. For search funds and strategic acquirers, emphasize integration ease and synergies with their existing platforms.

Preparation, professional guidance, and timing are key to meeting buyer demands. By organizing financials, building a strong management team, crafting a growth plan, and working with experienced advisors like God Bless Retirement, you can maximize your sale outcome.

Conclusion

The lower mid-market M&A scene in 2025 can be summed up as a "reset, not retreat" [1]. Buyers are still active, and deals are getting done, but the landscape has shifted significantly since the boom years of 2021–2022. Sellers need to adapt to this new reality. Today's buyers are laser-focused on defensible cash flow, predictable revenue, and clear growth opportunities. They're digging deeper during due diligence and leaning toward bolt-on acquisitions in stable sectors like HVAC and business services. To offset risks in this higher interest rate climate, deal structures now often include earnouts, seller financing, and equity rollovers. For sellers, this means preparation and strategic planning are more critical than ever.

The mix of buyers has also changed. Family offices, independent sponsors, and search funds now account for about 30% of deals on Axial, while traditional private equity and strategic acquirers are more selective, targeting platform-quality businesses with scalable growth potential [4]. These newer players often bring a longer-term outlook, flexible deal terms, and a collaborative mindset.

For sellers aiming for a strong exit, the process typically requires 12 to 24 months of preparation. This includes aligning financials with GAAP standards, reducing dependency on key customers or personnel, bolstering the management team, and crafting a solid growth plan. Businesses that are stable and well-documented still attract competitive offers and healthy multiples.

Going it alone in this process can be overwhelming. Experienced advisors can handle key aspects like valuation, identifying buyers, managing due diligence, and negotiating terms - all while maintaining confidentiality. God Bless Retirement specializes in helping businesses with EBITA under $25 million, offering NACVA-certified valuations, a private network of buyers, and a team of M&A experts to guide sellers every step of the way.

FAQs

What are the best ways to prepare a lower mid-market business for sale in today’s M&A landscape?

Preparing a lower mid-market business for sale takes thoughtful planning and a solid strategy. A great starting point is getting a certified business valuation. This helps you understand what your business is truly worth in the current market. Protecting your business during this time is also critical, so make sure to maintain strict confidentiality throughout the entire process.

It's wise to bring in a team of professionals - think CPAs, financial planners, and M&A experts - who can help you navigate the financial prep work and any potential tax considerations. To stand out to qualified buyers, emphasize your business's strengths and showcase its growth potential. Lastly, keep the entire sale process well-structured, from finding the right buyers to handling negotiations, so you can secure the best possible deal.

How are current economic and financing challenges affecting the valuation and sale of lower mid-market businesses?

Economic conditions and financing hurdles play a big role in shaping the valuation and sale of lower mid-market businesses. For example, when interest rates climb or lending standards tighten, the number of qualified buyers can shrink, potentially stretching out deal timelines and affecting pricing. On top of that, economic uncertainty often pushes buyers to proceed with extra caution, leading to more detailed due diligence and a stronger focus on minimizing risks.

To prepare, sellers need to ensure their financial records are precise, showcase the strength and adaptability of their business, and collaborate with seasoned advisors. Working with a reliable brokerage, such as God Bless Retirement, can help sellers tackle these challenges while keeping the process confidential and aiming to achieve the best possible outcome.

What roles do family offices and independent sponsors play in lower mid-market M&A, and how are their strategies different from traditional private equity firms?

Family offices and independent sponsors are playing an increasingly prominent role in the lower mid-market M&A space. Family offices, known for their focus on long-term investments, often prioritize stability and preserving a legacy over chasing quick returns. They also tend to offer more flexibility in structuring deals and face fewer external pressures compared to traditional private equity firms, allowing for a more tailored approach.

Independent sponsors, by contrast, take a different route. They don’t start with committed capital in hand. Instead, they identify and negotiate deals first, then secure funding from investors or partners to finalize transactions. This model gives them the freedom to be highly selective, though it can sometimes mean longer timelines to close a deal.

For sellers, both family offices and independent sponsors present appealing alternatives to the more rigid, formula-driven strategies of private equity firms. Recognizing the distinct advantages of each can help sellers align with the right partner to meet their business goals.

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