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Considering a Private Equity Investment?

May 29, 2013

For business owners looking for additional capital and expansion opportunities, a private equity investment may be the answer.

Planning for the future is something that is necessary for all businesses, and much of your company’s future rests on securing finances. Private equity, or selling operations to investors in exchange for additional capital, is a big decision for business owners, but could initiate great success. Private equity can be an excellent source of funding and a great step for your company if you are looking for:

  1. The opportunity for financial growth, expansion, or stability. This is the main reason many companies engage in private equity investments.
  2. A boost in your businesses' value and performance.
  3. Increased revenue, reduce costs and a business partner (PE firm).

There are a few important factors to weight when making your investment decision. It is important to keep a close eye on changes or downturns in the economy and legislation that can effect the success of private equity investments.

Keys to Success

The partnership developed in the process of a private equity investment could be a vital asset to your company. By accepting the investment from a PE firm, a business owner can forge a very advantageous bond that will ultimately bring capital to the business. With careful planning, the benefits on both ends of the deal make this arrangement an attractive and worthwhile experience for both entrepreneurs and investors.

For more information about private equity trends, how to ensure a private equity firm will work with you, a timeline of a typical investment and insights from McCarthy Capital's Robert Emmert and KLR's John Surrette, Jr,. read our white paper The Life Cycle of a Private Equity Investment.

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