This article looks at seeking private equity investment, and gives advice to business owners who are looking to acquire this for their business.
Private equity?
Although the private equity market has been growing since the 1970’s there are still a lot of businesses out there that wouldn’t know the first place to begin when it comes to seeking out private equity investment. The tragedy here is that there are many business who could benefit from private equity investment massively, however feel that being turned down for a bank loan is the beginning and end of any quest for financial support. How can you cast off the shackles and get the investment you and your business needs in order to move forward successfully?
Compare the meerkat
Okay, admittedly the famous website does not allow you to search for the best private equity deals, but it is taking us to the point we are making. When buying your home insurance you would never just choose the first one you see would you? Of course not, so even if your business is in dire financial straits and you need investment today, take the time to shop around and choose the best deal for you. Another rash decision could be the end of your business and should be avoided at all costs.
Generally, you will be looking at the options available, which will usually be as simple as a general fund or something that is specialised in your sector. It is up to you which you go for, however be aware that you may find yourself turning over a greater percentage of future profits if you enlist a private equity firm with expertise in your sector.
Image: Tax Credits, Flickr; CC BY-S.A. 2.0
Show empathy
By this we mean put yourself in the shoes of a private equity firm. Of course, this can be the most difficult bit as you will naturally think that your business is a great bet. If you struggle to see your business through the eyes of an investor then enlist the help of a friend or your accountant, who will give you honest feedback on the strengths and weaknesses of your business plan. Taking care of this early will give you the best opportunity of acquiring investment, as well as ironing out any issues that are likely to put investors off.
Have confidence
A strong part of any investment proposal will involve you, and more specifically your own level of confidence. While an investor will be attracted by what seems like a sensible, watertight business plan with excellent potential for revenue generation, you still hold the key. By having confidence in your plan and the ability to convey that confidence without crossing into arrogance will stand you out as a very strong investment opportunity.
Dealmarket is an online private equity marketplace that offers a selection of private equity funds to investors and entrepreneurs.
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