If you’re weighing your endgame, private equity is likely on your mind. Most firms buy a majority stake and ask you to roll equity—leaving you a minority owner in a company you no longer control.
Growth equity offers another path: take chips off the table via a secondary and keep the driver’s seat. This week’s episode with John Ruffolo (Maverix Private Equity; founded OMERS Ventures) breaks it down.
You’ll learn how to:
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Contrast a majority recap with a minority growth deal that preserves control
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Decode pre- vs. post-money so a headline valuation doesn’t dilute you
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Structure primary vs. secondary without dulling execution
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Protect rollover equity from going to zero by fixing debt, pref stacks, and drag terms
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Choose capital wisely when bank/mezz debt or customer financing beats equity
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Model investor return math (e.g., 3x in 5–7 years ≈ , 20%+ IRR) to negotiate from first principles
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leverage employee buy-ins as a quiet, tax-efficient liquidity option
Listen to Built to Sell Radio: Inside the Mind of an Acquirer with John Ruffolo.
Quote of the Week
Remember, when you’re doing a buyout transaction, even though you’re still staying in, you have sold your business. You’re no longer in control.
Deals
Ireland-based Hanley Energy Group, which designs and builds energy management and critical power systems that keep data centers running efficiently and without interruption, has been acquired by Jabil Inc. (NYSE: JBL) in a deal worth $725 million in cash, plus up to $58 million in additional payments if the company hits future revenue targets. The agreement values Hanley at roughly two times its projected 2025 revenue of $350–$400 million.
