Most business owners looking to sell feel like they have a surprisingly limited set of choices. When they start thinking about an exit, the first call often goes to the industry buyer they already know. In many cases that is the competitor who has been saying “call me when you are ready to sell” for years. It may feel like the easiest option, but owners often miss out on better outcomes by assuming it is the only one available.

The Problem with the Obvious Buyer

We recently spoke with a Greater Toronto area wealth manager who works with business owners of all sizes. One of his clients recently sold through the bank’s mid market advisory team and attracted offers ranging from $50m to one $195m CAD. The winning bid came from an international buyer using the acquisition as their entry point into Canada, and they paid a premium as a result.

This outcome shows what becomes possible when a full competitive process is run. Large advisory teams typically get involved once a business reaches about twenty million in expected deal value. Below that threshold, competitive processes do still happen, but they often require significant time, preparation, and advisor involvement. Many small business owners choose not to take on that level of effort, so they fall back on the more familiar paths they already understand.

From an owner’s perspective, the competitor often feels like the most obvious and straightforward option because it is the buyer they already know. If they are not aware of other approaches, or do not have the time or resources to explore a broader process, it can seem like the only realistic route.

What Business Owners Actually Want

For owners in this range, price is only one part of the equation. Many of these companies are family owned and have been run for decades. Owners care about their people, their legacy, and whether the business can grow beyond what they could achieve alone. The concerns that shape their decisions include:

• how involved they want to be after the deal
• whether they can take some risk off the table without stepping away completely
• what happens to their people
• whether the buyer will invest in growing the business
• whether the business can scale beyond what they could build alone

A simple one and done sale to a competitor rarely addresses those concerns. In the range below where large advisory firms typically operate, owners often do not know who else to speak with or what other structures exist. This is the gap where PE Gate focuses.

We work with owner operated businesses generating two to fifteen million in revenue with $500k to $4m in EBITDA. These are solid, cash flowing companies in stable sectors like professional services, pet care, and environmental services. They have strong fundamentals and meaningful growth potential, but they are generally too small to attract attention from traditional private equity firms with much larger fund sizes. That is why the competitor has often felt like the default option.

Tailored Deal Structures

When owners care about what happens to their people and how the business continues after they step back, a one size fits all transaction does not work. The deal structure needs to match their goals for the next stage. PE Gate supports that kind of flexibility through:

• minority investments where the owner sells part of the business, partners with a professional investor, and grows toward a larger joint exit
• majority positions where the owner derisks and steps back from day to day responsibilities while keeping meaningful equity
• succession friendly structures that allow family members or key managers to take on leadership roles and co-invest with PEGate

PE Gate’s digital platform provides access to liquidity by allowing founders, key managers, and investors to offer their shares for sale anonymously to other shareholders and to PE Gate’s accredited investors. 

The process is also more direct and moves faster than typical private equity deals. Owners work with our team throughout, and we bring hands-on operational support to help the business grow.

Why This Works for Wealth Managers

Many of our introductions come through our network of trusted wealth managers in the GTA. The deal we worked on with the wealth manager above was no exception.

He put it simply: “We refer clients to PE Gate because it is genuinely the best solution for business owners of this size. When they get a successful exit, we continue serving as their advisor. That is where the value is for us.”

The referral economics are straightforward. No finder fees. No broker commissions. No complicated splits. The introduction happens because it is the right solution for the client.

Making the Connection

The challenge is that most business owners do not know alternatives exist beyond the local buyer. Wealth managers who introduce PE Gate early give their clients real choice in how their exit unfolds.

Once owners see that we have successfully closed similar deals and understand the range of structures available to them, the conversation shifts from “should I sell to my competitor” to “what is the best structure for this transition.”

If you are working with clients who fit this profile and want to help them explore their options, we would be happy to talk. Reach out anytime to sarmen@pe-gate.com or schedule a conversation here.