Topics:

• Hybrid Model: PE + Search Fund
• A Strong Operator Profile
• Equity & Structure in Operator Deals

...and so much more.

Top Takeaways

• Succession is one of the biggest overlooked opportunities in the lower middle market. Over 50% of small business owners in the U.S. are nearing retirement age, but many lack a clear succession plan. For investors and operators, that’s an opportunity. Firms like Novastone Partners are targeting founder-owned businesses with $15M–$40M in enterprise value, where the right leadership transition can unlock serious value.

• Founders trust operators who’ve walked in their shoes. Founders want someone they can trust to take over. That’s why industry veterans often have an advantage. Operators in their 40s or 50s, with 20+ years in the same industry, can have peer-to-peer conversations with sellers from day one. They’re seen as real successors, not just financial buyers.

• The search will test you more than the acquisition itself. The search phase is where most aspiring buyers drop off. It’s long, unstructured, and full of dead ends. Even great operators can struggle if they underestimate how different sourcing is from leading. Don’t go it alone. Look for models like Novastone’s that offer salary, hands-on deal support, and a team to help with sourcing, outreach, and diligence. 

About Maxwell Taylor

Maxwell Taylor is Managing Director at Novastone Partners, where he leads operator selection, platform development, and deal execution. With a background in private equity and experience working with mid-career executives, Max helps bridge the gap between operators and business ownership. 

About Novastone Partners

Novastone Partners is an operator-led buyout firm focused on solving the succession crisis in the lower middle market. The firm backs experienced industry executives to acquire and grow founder-owned businesses with $15M–$40M in enterprise value. Since 2020, Novastone has backed over 70 operators and closed 24+ acquisitions.