Private equity activity continues to accelerate across Kentucky and the Midwest, creating new opportunities and new complexities for closely held businesses considering a sale. In a recent interview with The Lane Report examining the evolving PE landscape, Dinsmore Corporate Transactions Partner Tom Flanigan emphasized that successful transactions often depend on preparation long before a buyer emerges.
“State government continues to make strong efforts to attract private equity and private-sector investment activity in Kentucky,” he told the publication. “Much of that effort is targeted toward and results in business investment and job growth in the state and that creates the opportunity for existing Kentucky business to grow, existing business outside of the state to move to the state, and entrepreneurs to start new Kentucky companies, all of which become potential acquisition targets for PE groups.”
Flanigan noted that experienced counsel plays a critical role in helping businesses position themselves for sale by reviewing financials, identifying liabilities, strengthening operational practices, and developing long-term exit strategies. He explained that early planning can significantly improve valuation and reduce transaction risk, particularly in today’s increasingly sophisticated private equity market.
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