Is Private Equity Right for Your Company?

If you have an income-generating business that has been in business for a couple of years and you are interested in taking it to the next stage of growth, be it a cash infusion or a complete overhaul, then consider partnering with a private company. equity investor

First of all, what is ‘private equity’? In short, it is the financing provided by investors in exchange for a shareholding in the company. This type of financing is generally associated with mature companies with growth potential that need regeneration. A wide range of industry sectors benefit from PE, such as technology, industry, healthcare, banking and finance, and more.

People are often confused about the difference between private equity and venture capital. Venture capital is actually a form of private equity, but the main difference is that it tends to fund younger companies such as start-ups and start-ups.

Now that you know a little more, don’t stop there – there are plenty of resources out there that will teach you everything you need to know about private equity financing. This is just the beginning.

Once you’ve done a little more research, we’ll show you what you need to do to acquire this type of financing for your business. The first thing you’ll need to do to start your journey is to interview potential investors.

We understand how complex it is to find the right investor, so we’ve listed some key questions to ask when trying to find the right investor to partner with for the long haul:

• How much control will management and shareholders have?

• Will there be follow-up investments? If so, what are the terms?

• What experience do private equity firms have in your sector?

• Who are the main points of contact?

• What will happen if either party wants out of the deal?

• What costs will the company be responsible for?

• What is the investment horizon?

• How is the capital structure?

In addition to having these questions, we recommend that you always have a good attorney present to negotiate on your behalf. You will want to find a law firm with experience not only in private equity investments, but they should also have the business background to be able to step into the position of manager or founder. Choose your attorneys carefully and seek independent references.

Parabellum Investments are specialist middle market investors who only invest money earned from previous successful investments. Our independent investment fund does not include outside investors, such as investment committees or banks. This ensures faster operational processes and direct communication without having to consult with all external investors, which is typical in a traditional private equity deal. If you want to know how we can help your business prosper, visit our website and get in touch today.