When answering the question whether to target private equity with your business proposition, the key considerations should be to assess:
- Does your company have high growth prospects and are you and your team ambitious to grow your company rapidly?
- Does your company have a product or service with a techological, competitive edge or any other unique selling point?
- Are you willing to give up some of your company’s shares to a private equity investor?
- Are you prepared to share certain strategic decisions with shareholders outside your „inner circle“?
- Is there a realistic exit strategy for all shareholders?
- Do you and/or your management team have relevant industry sector experience? Do you have a clear team leader and a team with complementary areas of expertise, such as management, marketing, finance, etc?
If your answers are “yes”, private equity is definitely worth considering.
Furthermore, private equity is an option worth exploring when you wan to:
- Create a business;
- Improve and develop your business performance;
- Change the size of your business and reposition your market share;
- Launch new products;
- Exploit creativity and innovation;
- Liquidize some of your assets;
- Sell part or all of your company;