PE Yourself: Think Like a Private Equity Fund - Before They Show Up

Private Equity funds are masters of transformation. They buy a company, optimize it ruthlessly, and flip it a few years later at a multiple. Simple playbook. Massive impact.

But here’s a thought that’s been stuck in my head lately: If strangers can make your company significantly more valuable in a few years… why can’t you?

This is the core of the “PE Yourself” mindset.

What Does It Mean to “PE Yourself”?

It means acting like your own future investor. Ask the tough questions. Apply the same discipline. Build the company as if you're prepping it for exit - even if you never plan to sell.

Here’s how to start:

1. Treat Your Company Like an Investment

A PE firm doesn’t fall in love with your mission. It falls in love with your cash flow. So start by asking:

• Is your ownership structure clear and founder-friendly?
• Are your finances clean, simple, and auditable?
• Could someone new walk in and understand how the business operates?

If the answer is “not really” to any of the above, it’s time to tidy up. Be your own due diligence team.

2. Make Your Business a Scalability Machine

PE thinks in systems, not superheroes. You should too.

• Is the business scalable without cloning your best employee ten times?
• Are margins improving as revenue grows?
• Is customer retention solid, or are you spending a fortune just to stay in place?

Governance, reporting, and clarity around how decisions are made—these aren’t just for big corporations. They’re the foundation of a business that can grow without chaos.

3. Build for Transferability, Not Just Survival

Most founders build businesses that only they can run. That’s fine - until it’s not.

Want to keep optionality open? Design systems, roles, and processes that don’t rely on founder heroics. Build a team. Incentivize them to stick around. (Hint: retention plans and shadow equity can go a long way.)

Think like someone preparing a handover, not like a pirate captain gripping the wheel.

Why It Matters

Even if you never sell, thinking like a PE firm makes you a better operator. You’ll build a more resilient, efficient, and valuable company. And if one day a PE firm comes knocking? You’ll be ready—and in control.

So what’s stopping you from being your own best investor?

TL;DR: PE Yourself

• Clean up your financials, cap table, and operations
• Build scalable systems and governance
• Set up your team for long-term success
• Think like a buyer—even if you’re not selling

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I’m curious: how many of you are already operating with this mindset? What’s been hardest to implement? Let's connect.

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