Inside the Minds of Private Equity Buyers: Lessons from Successful Tech Acquisitions
Capturing maximum value in M&A can be difficult without proper guidance, which is why buyers need to ask the right questions when acquiring a company. Most importantly, how can they build relationships that help unlock this value? Entrepreneurs from around the world engaged in a productive discussion during the Buyers panel at the recent Growth and Exit Strategies (GXS) for IT Services Companies conference, hosted by the World Financial Symposiums (WFS). Here are some of their experiences as they explored several key topics.
Unique strategic advantages define the most successful tech buyers in M&A
Chris Deitrick, founder of Spring Companies, explains his company’s strategic positioning, which focuses on acquiring IT services businesses. Unlike typical private equity (PE) firms, Spring becomes the full owner of all businesses they acquire. This approach allows them to be more hands-on and partner directly with sellers. Spring Companies primarily targets smaller businesses with under $1M in annual recurring revenue (ARR).
Another member of the Buyers panel at the GXS conference held on July 7, 2025, Max Miller, shared a similar perspective. Miller is the director of Worklyn Partners, a holding company that exclusively acquires businesses in the cybersecurity and IT space. Worklyn's goal is to build a true one-stop shop for cybersecurity and IT services for the SMB market through strategic acquisitions.
Max echoed Chris’s comments, noting that their singular focus on cybersecurity and IT gives them a strategic edge over other players and PE firms that divide their attention across multiple industries. “Our goal really is just to focus on this single industry,” he said.
Contrasting Perspectives in M&A: What Buyers Value vs. Seller Misconceptions
A buyer’s perspective often differs from that of a seller, and both offer valuable insight into the M&A process. Many buyers tend to focus on financial factors such as interest rates and their broader implications. For Max and Worklyn Partners, however, these are among the least important considerations when determining the right time to buy. Instead, their priority lies in a company’s operational maturity, the seller’s readiness to go through an M&A process, and the target’s future growth potential.
A common misconception among inexperienced sellers is the belief that being acquired by a strategic player or large company is always the best option. There are many times where it might not be the right fit. Both panelists agree that what matters more is alignment with the buyer’s life cycle. As Deitrick explains: “you, as a seller, want to think about what the life cycle is of the buyer that you're looking at. Are they in a position where you can expect accelerated growth over the next five to seven, however many years?” Ultimately, they conclude that evaluating these key indicators can unlock exciting opportunities for both the seller and the buyer’s team.
The Role of Soul-Searching in a Successful M&A Journey
From a buyer’s perspective, working with sellers during an M&A process often involves navigating a range of emotions and potential pitfalls. Chris Deitrick emphasized that preparation—through due diligence and personal reflection—can make the journey smoother. Speaking on the closing stage, he explained, “This process is going to be some of the most emotionally heightened times of your life as a seller. You really want to be getting into the ring with someone that you know, that excites you and is trustworthy; prepared to step into the process knowing what you're looking for.”
Recalling his experiences with sellers, Chris shares the story of an owner who had been telling his team for years that he planned to sell the business. When he finally went to market and found a buyer, he wasn’t the only one evaluating the fit—his team was too. Crucially, he introduced the buyer to his team early in the process. This made the buyer more comfortable and ultimately worked in the seller’s favor, leading to a better valuation and a smoother transaction. Chris explains that this kind of groundwork can make a significant difference. In parallel, he emphasizes the importance of mitigating risks before going to market, not only because it affects valuation, but also because it influences how risk is shared after the deal closes.
Max further reflects on Chris’s comments, emphasizing the importance of establishing trust between buyers and sellers by developing a relationship. He notes that this is difficult to achieve in a compressed timeline, which is why giving the process more time can lead to better outcomes for both sides.
Seller Behaviors That Turn Buyers Away
One of the most common behaviors that drive buyers away is when sellers focus too much on what their involvement will look like after the sale. While this turnoff may not surface immediately, it can create uncertainty for buyers. As Chris noted, “It shows a lot of forward thinking when a seller can come in and say, the things that I'm best at are X and the things that I enjoy the most are Y.”
At Worklyn Partners, Max explains that there are other important considerations when buying a company. “A company's ability to keep their customers—and why they’re keeping them—is crucial. The product they’re offering is important, as well as the quality of talent they have,” he said. “Really understanding that as a buyer is how we start thinking about multiples that we think are fair for this business.” He adds that valuations don’t just happen. It’s important for sellers to understand that, throughout the process, they’re helping buyers come to terms with the business they’re acquiring.
The deal’s done. Now what? Reflecting on life after selling
For Chris, it’s crucial to paint a clear picture for sellers. He recalls one who envisioned “semi-retirement,” which, in their case, meant continuing to work in some capacity. At Spring Companies, they developed a short-term transition period where Chris and his partner retain control over what that involvement looks like. Beyond that, they identified specific areas where the seller wanted to remain involved.
Both panelists agree that expectations and involvement differ from one seller to another. Sometimes, it’s essential for the seller to help drive the company’s growth alongside the buyer. In other cases, the seller may prefer to scale back and remain a “silent partner” of sorts. Ultimately, it all comes down to communication, along with the conversations that happen before the LOI. To close the panel, Max adds, “Buyers must handle the integration and transition period in a way that makes employees and customers feel comfortable, as we're trying to minimize disruption as much as possible.”
WFS is hosting an upcoming Growth & Exit Strategies online conference “Scaling & Selling in the AI Era”, on November 6th. REGISTER HERE and hear from speakers representing KPMG, Astra Capital Management, Rockwell Automation, Expert DOJO, Butterfly Ventures, Corum Group, and more!
All details available at wfs.com/conferences.