There are several advantages to retaining a percentage of ownership when selling your business to a private equity firm.
Continued involvement in the business: Retaining a percentage of ownership allows you to continue to be involved in the business, which can be rewarding and allow you to stay connected to the company you have built.
Potential for future profits: If the business is successful after the sale, you will continue to share in the profits as a shareholder. This can provide a potential source of ongoing income.
Potential for future liquidity: If the private equity firm decides to sell the business at a later date, you may have the opportunity to sell your remaining stake in the company, providing you with additional liquidity.
Opportunity to retain some control: Retaining a percentage of ownership allows you to retain some level of control over the business, which can be important if you have a strong vision for its future direction.
Potential for future negotiation: If the private equity firm is interested in purchasing additional ownership in the future, retaining a percentage of ownership gives you the ability to negotiate on more favorable terms.
Overall, retaining a percentage of ownership can provide ongoing benefits and opportunities to a seller of a business, while still allowing the private equity firm to bring in their expertise and resources to help grow the business.
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