Private Equity
Private equity is the provision of equity capital by financial investors – over the medium or long term – to non-quoted companies with high growth potential.
Private equity covers not only the financing required to create a business, but also includes financing in the subsequent development stages of its life cycle.
Is private equity right for your business?
Each business has its own ambitions, abilities and needs and not all will be suitable for private equity. The following questions are designed to help you assess whether private equity is right for you. If your answers are predominantly “yes”, then private equity is worth considering. If there are too many negative responses, it will be difficult for you to interest private equity investors.
- Are you prepared to take on the responsibility of being an entrepreneur, i.e. to run a business with a method and structures, to delegate responsibilities to a team and know how to motivate them, to develop your knowledge outside the business and bring this knowledge into your company, to take on the legal responsibilities – in a word, to take the plunge?
- Are you prepared to give up part of your company’s capital to a private investor?
- Does your business operate in a growth market?
- Are your company’s development prospects sufficiently ambitious?
- Is your team prepared to follow you? Does it have the necessary experience?
- Does your company have a certain technological or competitive advantage that can be developed or exploited?
- Are you prepared to share certain strategic decisions with shareholders outside your “inner circle”?
- Is there a realistic exit strategy for all shareholders?
These and other important questions that will come to you as you read this guide are the kind of questions that investors will quickly ask you.
Private equity is an option worth exploring when you want to:
- create a business;
- improve and develop your export performance;
- exploit the creativity and innovation of your team;
- recruit highly qualified personnel;
- sell part or all of your company;
- change the size of your business and take over one of your competitors;
- launch a new product;
- improve your management capacity;
- Liquidise some of your assets.
How we function here:
- To understand clients’ requirement.
- To advise Clients on how to prepare detailed Business Development plan.
- Approaching and discussing the deal with potential investor and Private equity firms
- Short Listing investors on mandate terms and suits to business proposition.
Analyze the offers and negotiate terms and co-ordinate in overall due diligence.