Key Takeaways
- • Add-on acquisitions accounted for 72.9% of all private equity buyouts in 2025, according to Cherry Bekaert's analysis of PitchBook data, making HVAC, dental and IT services firms in the D.C., Maryland and Virginia region prime targets for platform-and-bolt-on strategies.
- • Only 32% of owners have a documented exit plan and 78% have not built a transition team, per the Exit Planning Institute's 2023 National State of Owner Readiness Report, even though 73% say they want to exit within ten years.
- • Rollover equity appeared in 57% of mid-market acquisition agreements in 2023, up from 46% in 2020, per Goodwin's Private Equity Deal Database, meaning headline prices can differ substantially from cash received at closing.
- • Sellers should define their after-tax cash needs at closing before negotiating, and assemble advisers including an M&A attorney, a transaction-focused CPA and a wealth advisor before the first meeting.
- • The Exit Planning Institute research reportedly found owners now rank financial advisors as their most trusted advisers, ahead of attorneys and accountants.
Summary
Private equity outreach to business owners in the Washington, D.C., Maryland and Virginia region has become routine, driven by firms seeking to deploy capital through platform acquisitions and add-on purchases. According to Cherry Bekaert's analysis of PitchBook data, add-on acquisitions made up 72.9% of all private equity buyouts in 2025. The article identifies HVAC contractors, dental groups and IT services firms as typical targets.
The article argues that owners are generally unprepared for these negotiations. The Exit Planning Institute's 2023 National State of Owner Readiness Report found that only 32% of owners have a documented exit plan, 22% have aligned personal, business and financial goals, and 78% have not built a transition team. Although 73% of owners say they want to exit within ten years, the author characterizes the process as an unevenly matched contest between professional buyers and first-time sellers.
Headline price is only part of the picture. Goodwin's Private Equity Deal Database found rollover equity in 57% of mid-market acquisition agreements in 2023, up from 46% in 2020. Rollover can offer a second opportunity if the buyer later sells at a higher value, but it also leaves a portion of proceeds exposed to future outcomes. Earnouts, escrows and holdbacks can further reduce the cash received at closing. The article recommends that owners first determine how much after-tax cash they need, how the deal will be taxed and how it fits their estate plans, whether they wish to keep working, and how employees will be treated.
The author recommends assembling advisers early, including an M&A attorney, a CPA with transaction tax expertise, an investment banker where warranted, and a wealth advisor. The Exit Planning Institute research reportedly found owners now name financial advisors as their most trusted advisers. The piece is authored by a representative of Quillion Wealth Management and includes disclosures noting that the firm does not provide tax or legal advice and that investment services are offered through Wells Fargo Advisors Financial Network.
The article argues that owners are generally unprepared for these negotiations. The Exit Planning Institute's 2023 National State of Owner Readiness Report found that only 32% of owners have a documented exit plan, 22% have aligned personal, business and financial goals, and 78% have not built a transition team. Although 73% of owners say they want to exit within ten years, the author characterizes the process as an unevenly matched contest between professional buyers and first-time sellers.
Headline price is only part of the picture. Goodwin's Private Equity Deal Database found rollover equity in 57% of mid-market acquisition agreements in 2023, up from 46% in 2020. Rollover can offer a second opportunity if the buyer later sells at a higher value, but it also leaves a portion of proceeds exposed to future outcomes. Earnouts, escrows and holdbacks can further reduce the cash received at closing. The article recommends that owners first determine how much after-tax cash they need, how the deal will be taxed and how it fits their estate plans, whether they wish to keep working, and how employees will be treated.
The author recommends assembling advisers early, including an M&A attorney, a CPA with transaction tax expertise, an investment banker where warranted, and a wealth advisor. The Exit Planning Institute research reportedly found owners now name financial advisors as their most trusted advisers. The piece is authored by a representative of Quillion Wealth Management and includes disclosures noting that the firm does not provide tax or legal advice and that investment services are offered through Wells Fargo Advisors Financial Network.
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