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You've made it. You've built and run your business for years, building a dependable team and appreciative clients. But it's time to move on.

Private equity and strategic buyers have approached you. What do you do?

You want to maximize your ROI, respecting and protecting your team in the process.


Trouble is, there's no clear answer. PEs will be forced to make short-term decisions to extract value to carry the increased debt load and achieve their investment thesis. Strategic acquirers will swallow your company, likely shutting down part or all of your operation in the process. Either option hurts the team and destroys long-term value. Additionally:

  • the valuations you'll see will be dismal (single digit earnings multiples),
  • the acquirer will likely show little respect to your company and its people,
  • many former owners find themselves in an unexpected identity crisis following the sale of their life's work.

Passiv Equity is the answer. The process is simple, but not easy. We work with B2B companies to drive insights through data & analytics, use those insights to drive earnings, and finally bring in a professional CEO who will be incentivized to grow the business - freeing you from it in the process. All of this under your guidance and continued ownership.

The best investors of all time weren't investors at all, they were entrepreneurs who never sold.
-Charlie Munger

To do this, we will first turn data into actionable information. You will know the most, and least, profitable products, clients, and assets; where costs can be cut; how sales and marketing can be improved to propel growth; where technology can be most effectively deployed; and where operational improvements should be made across the enterprise. We will then implement these changes to improve earnings to self-fund hiring a CEO to lead the company through the next phase of growth. The analytics built in the first phase will help you to keep a finger on the pulse and concentrate your efforts on the highest-value prospects. In doing so, you will have a company better positioned to capitalize on the foundation you've built and grow in a sustainable manner.


Passiv Equity is different than others you've considered as a way to step back from your business. Our incentives are aligned. We get paid when you get paid - there is no upfront cash impact for our services. You have a single point of contact, and throat to choke. Our goal is to drive earnings to owners over the long haul. Our aim is to be the highest-ROI service provider you deal with, period.


One thing is certain - there are no quick solutions. Preparing for an acquisition, due diligence, negotiation, and hopefully closing the transaction, followed by the earn out period can range from two to five years. Passiv brings that down to two. Inaction now only puts off the day you can step away. You got to where you are by making tough calls. The time is now.


By moving forward with Passiv, you can expect:

  • 4-7x the cash flows compared to selling and reinvesting in the stock market
    • e.g., over a 10-year period: $17M in total cash flows if the company is sold in three years and reinvested in the stock market vs. $86M if it is made Passiv, resulting in 5x the cash flows. This increases to 7.7x [$25M vs. $195M respectively] if the hold period is increased to 20 years. All scenarios assume $10M revenue, $1.8M net income current state.
    • Reach out for a customized view of projected cash flows, at no cost.
  • To create enough wealth along the way to be able to reward the employees that helped create it, and recruit more, by funding an ESOP.
  • Optionality, in that the work Passiv does for your company will make it more valuable and streamline the sale process, should you decide to change course.
  • A way to ease into retirement while retaining a sense of meaning. Your company becomes a creative outlet, not an obligation.
  • Finally, being able to look back on your life knowing you didn't sell out and have done all you can to protect the people in your life.

Perseverance prevails. Make it Passiv.


Billy Hall

Cash in without selling out.

Drop us a note at build@passivequity.com to learn more about how Passiv Equity enables business owners to do the right thing - for family, company, and community.