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Playbook Media vs. private equity.

A private equity fund buys a business to sell it again. A long-term owner buys it to keep. Both can be good buyers; they want different things after the sale.

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Contents1.1Is Playbook Media an alternative to private equity?1 / 5

§ 1.1

Is Playbook Media an alternative to private equity?Yes, for a different outcome.

Fig. 1.1Short answer

Yes, for founders who want an owner with no resale date. Private equity funds usually plan to sell a business within several years, and their terms reflect that plan. Playbook Media plans to keep each business for the long term.

  • Private equity funds rarely buy software businesses at $5k–$20k in monthly recurring revenue on their own.
  • At this size, founders more often meet holding companies that funds own.
  • Ask every buyer who funds it and when it expects to sell.

§ 1.2

Side by side.Typical patterns.

Fig. 1.2aA fund with a resale date and a long-term owner, over time
Fig. 1.2bPrivate equity and Playbook Media
Private equity fundPlaybook Media
Plan for the businessGrow its value, then sell it, often within several years.Keep it, improve it and reinvest its cash.
How the price is paidOften cash plus rollover equity, sometimes with borrowed money and earn-outs.Proposed terms follow a review of records. We explain how we reach the number.
Your role afterOften a management role with targets, or a board seat.Agreed in the transition plan, before ownership changes.
What drives decisionsThe value at the next sale.Cash generation and customer value over time.
Track recordFunds can show past deals and returns.None yet. We have not completed an acquisition.

§ 1.3

What to check in a fund’s offer.Before you compare headlines.

  1. Check 1

    Rollover equity

    Shares you keep in the business or the fund. Their value depends on the next sale and on who gets paid first.

  2. Check 2

    Borrowed money

    Debt used to buy the business is often repaid from the business’s own cash.

  3. Check 3

    Earn-outs

    Payments that depend on targets. Check who controls the results.

  4. Check 4

    The resale date

    The fund’s timeline shapes decisions about prices, people and costs.

§ 1.4

When private equity is the right answer.An honest list.

Choose a fund when

  • You want to sell part of the business and keep a stake in a second sale.
  • The business is larger and needs capital to grow fast.
  • You want a buyer with a long record of completed deals.

Talk to us when

  • You want the product to have an owner with no resale date.
  • Your business is developer, creator, productivity or lightweight business software at our size.
  • You want one conversation with the person who decides.

§ 1.5

Questions founders ask.Short answers.

Do private equity funds pay more?

Sometimes the headline is higher. Compare the cash you receive at closing, the conditions on later payments and what happens to the business.

Is Playbook Media funded by a private equity fund?

Ask us in the first conversation. We will confirm that funds are available before you sign.

Do you use rollover equity?

We have no standard structure yet. Proposed terms follow the review of the business, and we explain each part.

  1. 1Patterns vary between firms. This page describes common practice in general terms. It is not legal, tax or financial advice. ↩
  2. 2Playbook Media has not completed an acquisition yet. Weigh that when you compare us with buyers who have. ↩

End of comparison

Next comparisonVenture capitalFor profitable founders: how raising venture capital differs from selling to a long-term owner or keeping the business.