What private equity firms look for
Private equity isn’t for all types of companies. Their mission is to invest in companies (with a majority or minority stake). They create value during a period of approximately four or five years and then sell their share with the greatest capital gain possible. Therefore, they look for businesses that show clear growth potential in […]
Private equity funds: 19 contributions
Generally, we find articles about private equity funds discussing what these companies are looking for or what type of company they invest in. In this article we wanted to change the direction. We will perform the analysis from the entrepreneur’s point of view. Therefore, our main goal is to understand how a private equity firm […]
Private Equity or Industrial Buyers: Approach
Private equity firms are essentially financial investors. When pursuing a financial investor, you should consider that their investment criteria typically varies from a typical industrial investor. Regarding investment objectives A corporate looking to invest often seeks to control a company’s management and, in turn, tends to make long-term investments. Their rationality behind investing is to […]
Six Things to Know When Negotiating with a Private Equity
Private equities have well prepared specialists who know how to satisfy their interests and buy at very attractive prices. They will be your partners and you will have to trust them when they become part of your company, but before this will happen, they are your opponents and you should be careful to protect your […]
Beware of the shark´s kiss
Private equities have many techniques to get what they want. They are manufacturers: they manufacture money, buying cheap and selling expensive, so beware. Don’t only negotiate with one private equity firm; prepare alternatives, whether they be private equity or other buyers and investors. If you only negotiate with one, you will lose your negotiating power. The sale […]
How a Private Equity Firm can help you?
Private equity firms are investment vehicles. Their mission is to invest in companies (with a majority or minority stake). They create value during a period of approximately four or five years. Then, sell their share with the greatest capital gain possible. Private equity makes mid to long term investments of money in companies (a maximum […]