Why Being a ‘Lala’ Is No Longer a Disadvantage

The Day One Line Changed How I Look at Promoter-Led Businesses

Three years ago, when I entered the world of M&A, I thought I understood businesses.

I had spreadsheets.
I had frameworks.
I had checklists of “what buyers like” and “what buyers avoid”.

And somewhere in those mental checklists, one line was quietly written in bold:

Promoter-driven, closely held businesses are risky.

No CXO layer?
Red flag.
Founder doing everything himself?
Bigger red flag.

At least, that’s what I believed.

The Deal Room Classroom

Over the next three years, I represented multiple sell-side companies across sectors and deal sizes.

With each mandate came new conversations:

• Strategic buyers dissecting synergies

• Family Offices asking about legacy and cash flows

• Private Equity funds modeling downside scenarios

• HNIs trusting instinct more than IRRs
  

Every meeting felt like a classroom.
Every rejection, a lesson.
Every term sheet, a perspective.

And slowly, something didn’t add up.
The Pattern I Couldn’t Ignore

I noticed that some of the most intense interest—especially from PE funds and Family Offices—was coming not for the most “professionally managed” companies…

…but for family-owned, promoter-led businesses.

The very businesses I once thought buyers would avoid
Founders who still signed cheques themselves.
Promoters who knew every machine, every supplier, every customer by name.
Businesses where governance wasn’t polished—but ownership was absolute.

It bothered me.

Had the market changed?
Or had I misunderstood it all along?
The Question I Finally Asked

One evening, during a casual discussion with a Private Equity professional, I asked what had been sitting in my head for months.

“Why do PE funds seem more comfortable backing promoter-led businesses today?”

He smiled.
Paused for a second.
And said something that felt almost too simple.

“Paise to lala hi banata hai.”

At First, It Sounded Like a Joke
But then he explained.
A promoter doesn’t run a business the way a CEO does.

For a promoter:

• His reputation is on the line

• His family name is on the balance sheet

• His entire net worth is already invested

• His identity is inseparable from the company

If the business fails, he doesn’t lose a job.
He loses who he is.

A professional CEO—even a brilliant one—always has an exit plan.

The promoter doesn’t.

Skin in the Game Is Not a Slide on a Pitch Deck

That was the moment something clicked.

Promoter-led businesses don’t outperform because they are perfect.
They outperform because they cannot afford not to care.

They stretch capital harder.
They survive longer downturns.
They fight when others resign.

Not because they read the right books—
but because walking away is not an option.

What Buyers Actually See Today

Private Equity and Family Offices are not blind to risks.
They see the lack of systems.
They see over-dependence.
They see governance gaps.

But they also see something else:

A business where the hardest part is already done—commitment.

All they need to add is:

• Capital

• Structure

• Strategic direction

And suddenly, value multiplies.

The Real Risk Is Not the Promoter

The real risk is the promoter who never pauses to see his business from the outside.

Who doesn’t know:

• How a buyer perceives his numbers

• Where valuation leaks

• Which risks matter and which don’t

• What needs fixing before the deal table

Because when readiness is missing, even a strong business feels weak.

A Quiet Message for SME Promoters

If you are still running your business yourself
This market is not judging you.

It is quietly watching you.

Your commitment is your strength.
Your involvement is your advantage.

But clarity is no longer optional.

The promoter who understands the deal room
controls the narrative.

The promoter who doesn’t
is forced to accept it.

That One Line Still Rings in My Ears

“Paise to lala hi banata hai.”

But here’s the unspoken second half:

The lala who prepares, understands, and evolves
is the one who exits on his terms.

And that is the difference
between selling a business
and closing a chapter with dignity.