Private Equity: Helping founder-owners scale and secure their legacy without burning out
Lately, I’ve been seeing a lot of demonizing and negative rhetoric about private equity in the media. When people hear “private equity,” they often think of massive, multi-billion-dollar firms making headline-grabbing deals. But when we talk about private equity in the lower middle market, the story is very different. In the lower middle market, the private equity firms I’m referring to are those backing real businesses in industries that keep our communities running: HVAC, plumbing, construction, healthcare services, behavioral health, and other essential trades. They’re stable, necessary businesses that provide real value, often built by founder-owners who’ve spent decades growing them from the ground up. In my work representing both PE firms on the buy side and founders on the sell side, I’ve seen how this kind of PE can make a huge difference.
For many founder-owners, their business isn’t just their livelihood—it’s their identity. They’ve put in the 80-hour weeks, worn every hat, and made the sacrifices to build something meaningful. But at some point, every owner faces a crossroads. Some are ready to retire and enjoy the life they’ve spent decades building. Others are burned out, exhausted from carrying the weight of the business alone. And some want to scale but don’t have the capital, resources, or support to take that next step.
This is where private equity (PE)—when done right—offers a path forward.
I’ve seen how PE helps founders transition without just walking away. It’s not about a hostile takeover or stripping down a business for parts. Many founders receive rollover equity, allowing them to stay involved in a meaningful way while gaining the support and resources to scale. Some decide to stay on in an employment capacity, continuing to lead and grow their business—but now with the backing of a strategic partner, rather than carrying the full burden alone. They get to see their business grow beyond what they could have done alone—without being the one handling every problem that comes up at all hours of the day and night.
More importantly, it gives them something they haven’t had in years: time—time to step back, avoid burnout, and actually enjoy the life they’ve worked so hard to build. Time with family. Time to pursue other passions. Time to breathe. And yes, it also provides financial security and generational wealth, ensuring that their legacy benefits their families for years to come.
Instead of villainizing PE, let’s recognize the real impact it has on founders, their employees, and the industries we all rely on. When done right, it’s not about taking—it’s about building something even stronger.
McDonald Hopkins M&A attorney Vanessa Bailey is available for questions regarding Private Equity, Mergers & Acquisitions, & Business Counseling matters.
