Private Equity: Myth Vs Reality

In this broadcast, Kevin Uphill discusses how investors add value, what private equity looks for and typical structures and costs. He also shares ideas on investment and Covid-19 and some success stories.

What Is It Really Like Working With Private Equity and Should You Explore This Route to Sell Your Business?

Conventional wisdom is that a trade buyer who can gain economies of scale and synergy will pay the most for your business. Today, however, with so much private money looking for yield, Private Equity (PE) is becoming an increasingly attractive option. Trade buyers have lots of options for growth beyond acquisitions, including competing with you. So for sellers, Private Equity can be an attractive option, particularly if they wish to retain a stake in their business and maybe an active involvement and thus ‘elevate’ their deal value significantly over time as the business realises its full potential with capital behind it.

There is, however, scepticism from entrepreneurs about how Private Equity adds value and works. In the early days of institutional money, this was often a fair concern with extensive fees and spreadsheet models. Financiers perhaps just brought money, suits, and little added value. Things have moved on, however, so let us separate the myth from the reality. What is it really like working with Private Equity and why you may want to explore this option to sell your business that would secure capital to grow, or perhaps swap debt for equity rather than a trade deal? This is what we will attempt to answer in our webinar and our accompanying article, listed below.

 

We have launched our ‘Lead Ahead’ Webinar Series in line with our weekly articles, if you are interested in reading the accompanying article to this webinar – ‘Private Equity – Myth versus Reality‘ – here.

Alternatively, you can watch our ‘Selling a Business Post-Covid: How To Prepare A Business For Sale’ webinar here.

For information on other webinars within the series, visit our Webinars & Events page.

Avondale is launching a Scale to Sell Board Group – we also offer one to one consultation to help you understand current valuations, value builder options or the best exit strategy options.

For an exploratory discussion without obligation, please contact us on +44 (0)1737 240888 or email av@avondale.co.uk.