An unsolicited call from a PE firm feels like validation. It is — your business is real and buyers are paying attention. But the call is not an offer. It’s the opening move in a negotiation that started before you picked up the phone.
What the call actually means.
When a private equity firm or strategic acquirer reaches out to a trades or contractor business owner out of the blue, the first reaction is usually some version of: they found me, so I must be doing something right.
That part is true. You are doing something right. But the buyer has already done their homework. They know your revenue range. They have a model that tells them what the business is worth to them — and what it would cost them to overpay. They’ve done dozens of these conversations. They know which founders are excited by the attention and which ones will ask hard questions.
Most founders who take that call think they’re evaluating a buyer. They’re actually being evaluated — and the evaluation started the moment they said hello.
One buyer means no market.
The fundamental problem with taking a single unsolicited offer directly to term sheet is this: you have no idea what you left on the table. Not just money — structure, earnout exposure, working capital adjustments, what happens to your employees after close, how long you’re locked in.
Deal mechanics are designed to optimize for the buyer. Every clause they put in front of you was drafted by lawyers who do this full time. Most founders are reading the document for the first time.
When multiple buyers are competing, you have information. You know what the market actually pays. You know which buyers are aggressive on price but punitive on structure. You know which ones have a track record of closing — and which ones re-trade at the finish line. That information is worth more than most people realize.
The conversation I have the most.
The hardest conversation isn’t with founders who are undecided about whether to sell. It’s with founders who have already been talking to a buyer for three months, gotten emotionally attached to the relationship, and are now asking whether the offer is good.
Sometimes it is. More often, it’s a fair offer — in the sense that the buyer will close — but not a market offer. There’s a version of the deal, with a real process, where more of the value stays on your side. But by the time I get that call, the founder has already disclosed more than they should have, and walking away feels harder than it should. The buyer has been counting on that.
What to do when the call comes.
Talk to someone before you talk back to them. You don’t need to have a process underway. You just need 45 minutes with someone who has been in these rooms before and can tell you what the call actually means, what the offer will probably look like, and whether you want to run a competitive process or negotiate directly.
That conversation costs you nothing. What you find out might change everything.
If you’re early — just got a call and want to understand what it means before you respond — I’m happy to be that conversation. No process, no commitment.
If you’ve already been talking to a buyer for a while and something feels off, that’s worth a call right now.
Josh Gladtke is Managing Director and Partner at Good Hope Advisors. He advises founders in HVAC, plumbing, landscaping, electrical, and roofing through the sale of their businesses.