Sell to private equity – PUNGELLO CPA
Is Your Business Ripe for Private Equity?
Private equity firms are aggressively acquiring small and mid-sized businesses across the country, especially those generating under $5 million in annual revenue. If you own a company in technology, contracting, HVAC, pest control, or other essential service industries, you may already be on a buyer’s radar.
At Pungello CPA, we specialize in helping business owners prepare for this opportunity—organizing financials, strengthening operations, and ensuring your business meets the profile that private equity buyers prize.
What Buyers are looking for in Sub-$5M Revenue Acquisitions
Every platform has its own scorecard, but private equity groups consistently look for the same fundamentals when evaluating a tuck-in acquisition:
Clean, profitable financials: Positive EBITDA/SDE with well-documented add-backs.
Recurring revenue streams: Service agreements and memberships that drive predictability.
Balanced customer base: No single client accounting for more than 10–15% of revenue.
Experienced teams: Licensed staff with depth beyond the owner or one key manager.
Geographic density: Service areas near existing platform markets for routing efficiencies.
Modern systems: Field management and CRM software with trackable KPIs.
Compliance readiness: No pending litigation, OSHA issues, or open permits.
Our role is to help you align with these requirements and present a strong, compelling profile when you go to market.
Industries Ripe for Private Equity Acquisition
Contractors & Service Trades
Contracting and home services are especially attractive because they generate steady demand and repeat customers. Buyers are pursuing:
HVAC (heating, cooling, and IAQ specialists)
Plumbing companies
Electrical contractors
Roofing and siding firms
General remodeling and renovation businesses
Pest control companies
Landscaping and lawn care services
Pool and spa service providers
Technology Firms
Private equity investors are highly active in tech, particularly businesses that provide recurring services or scalable platforms. Attractive niches include:
Managed IT services
SaaS providers
Cybersecurity firms
Cloud integration companies
Telecom and VOIP providers
Data analytics firms
Digital marketing technology platforms
FinTech solutions
If your business falls into one of these categories, chances are you’re already “on the list” of potential private equity buyers.
Why CHOOSE Pungello CPA?
Selling a business is more than handing over financial statements. It requires foresight, positioning, and a clear understanding of what buyers value most. At Pungello CPA, we combine decades of accounting experience with transaction readiness expertise to:
- Normalize your EBITDA and SDE for valuation.
- Benchmark KPIs against buyer standards.
- Organize your compliance and regulatory records.
- Build a clear financial story that attracts competitive bids.
Our mission is to help you maximize the value of your business while ensuring a smooth, confident sale process.
What size businesses are private equity firms buying right now?
Sub-$5M revenue businesses with $0.5M–$1.5M in EBITDA are receiving strong interest, especially in service trades and technology.
Do I have to sell 100% of my company?
Not always. Many private equity groups allow owners to retain partial ownership and continue leading the business through its next growth phase.
When should I start preparing for a sale?
Ideally 2–5 years before going to market. Early preparation increases valuation and avoids surprises during diligence.
Why should I use an advisor like Pungello CPA?
Because buyers scrutinize every detail—from your P&Ls to your customer data. Having experts organize, clean, and present your business gives you the best chance to maximize value and protect your legacy.
Pre-Sale Checklist:
How to Make Your Business Irresistible
If you’re considering a sale in the next 2-5 years, here’s what you should focus on:
Grow memberships
Target 20–40% of revenue from recurring agreements.
Shift your mix
Emphasize service, repair, and replacements over new-construction work.
Retain your team
Put agreements or bonuses in place for key technicians and managers.
Clean your books
Maintain 3–4 years of accrual P&Ls and organize add-backs clearly.
Track KPIs
Document call volume, conversion rates, ticket size, and maintenance base.
Diversify customers
Avoid reliance on one or two large accounts.
Upgrade systems
Use exportable CRM/FSM tools for customer and membership data.
Enhance your brand
Build online reviews and improve your service reputation.
Resolve issues
Close permits and address OSHA or insurance gaps.
Plan succession
Outline who will handle operations during the first year post-close.
Find Out How Much Your Business
Can Be Worth to Private Equity
Ready to discover what private equity could mean for your business? Schedule a confidential consultation today and learn how much your company may be worth in today’s market.