An Entrepreneur’s Guide to Building Wealth through Private Equity with Adam Coffey [Ep.161]

The Opportunity Podcast

Many entrepreneurs think selling their business is a one-time event. But there’s another way to get a big payday and continue growing your business.

Instead of selling everything, you can sell a portion of your business to a private equity firm. This reduces your financial risk by allowing you to cash out a large sum of money from your business. Plus you now have a powerful new partner with deep pockets to help you grow your business even further.

With this strategy, you can sell the same business multiple times, earning you far more money than you would by simply selling 100% of your business once-off.

Adam Coffey, a private equity expert and CEO of The Chairman Group, has successfully used this strategy many times. In fact, his personal record is selling the same company five times in thirteen years!

In this episode, Adam joins us to demystify the world of private equity for online business owners.

He explains how private equity works, what a typical private equity deal structure looks like, and of course, the many benefits of partnering with a private equity firm. According to Adam,

“The two biggest mistakes entrepreneurs make are overestimating their importance in their business, and struggling to decide when to sell their business. As they get older, they become more conservative, which slows growth. By partnering with private equity, they can reduce their risk, access more capital, and keep growing aggressively, ultimately maximizing their business's value.”

Becoming a minority shareholder in your own business opens up avenues of growth many entrepreneurs didn’t even know existed. Done right, it is an excellent way to accelerate your personal wealth. Download this episode to learn more!

Topics Discussed in this episode:

• Adam’s background and what motivates him today (02:31)
• The difference between private equity and other forms of investments (06:29)
• A typical private equity deal structure (13:50)
• The benefits of becoming a minority shareholder in your own company (20:00)
• How to attract private equity investments (32:17)
• Common private equity mistakes entrepreneurs make (44:49)
• The best professional advice Adam has ever been given or heard (52:11)

Mentions:

• Empire Flippers Podcasts
• Empire Flippers Marketplace
• Create an Empire Flippers account
• Subscribe to our weekly newsletter
• Adam's Books
• Adam’s LinkedIn

Sit back, grab a coffee, and learn how partnering with private equity can accelerate your business’s growth!