Private equity

An exit to private equity can have many advantages. Depending on your personal requirements, this can be structured as a staged exit and can deliver significant value over a trade sale, although it carries a higher risk profile. It will bring greater focus on your management team or your continued role in the business and will often limit you to a partial exit.

The PE industry has continued to expand, with new funds being raised almost weekly. Gaining interest from private equity has never been easier. However, actually completing the deal remains as challenging as ever. A successful one requires articulation of a very clear plan and the presentation of a management team capable of delivering it.

A major benefit of a sale to private equity is the continuity it affords your company. The retention of experienced managers, who will be invited to participate in the equity and who know the business well, can avoid the kind of turbulence that often occurs when ownership changes hands.

 

Advantages

Continuity

A sale to Private Equity will deliver (in most cases) continuity and minimises the risk of post deal restructuring and consolidation.

Reward your team

Giving your management team the opportunity to take over, drive future growth and reap the rewards.

Carried interest

A sale to Private Equity will often allow a vendor to retain an equity investment, or carried interest, in the business giving access to future upside.

This is for you if...

You are attracted by a sale of part of your share of the business, with part of your investment remaining for future growth in the new company. Or if you have a strong management team capable of and enthusiastic about taking the business forward, backed by a PE investor.

 

To find out how we can help you, contact Jim Shaw.