Your journey to Private Equity

This infographic outlines what it takes to get Private Equity investment.

Private Equity investors take mature, profit-making businesses and look to grow revenue and profit-making businesses, and look to grow revenue and profit even more.

What do Private Equity deals look like?

• High value - Investments usually deal in the millions.

• Big stakes/shares - Private Equity firms usually take large or controlling stakes (+50%).
• Shake things up - Senior management usually changes.
• 5 years Relationships usually last three to five years.

Reasons for Private Equity

• Leave/Sell - You want to leave or sell your company
• Growth - You need funding or experience to enable big changes within the business. For example, you're targeting new markets or want to launch new technology

Finding a Private Equity investor

The good news

• They may approach you - Private Equity firms are always looking for businesses to invest in.
• Get in touch - Cold calling Private Equity firms is normal.
• Intermediary - Lawyers and advisers can make introductions.

The tough news

• The percentage of businesses Private Equity firms invest in, out of the number it sees, is low.

Before you pitch

• Talk to people: Advisers, your peers, businesses that have been there before.
• Be clear in what you want: How involved do you want your investor to be? What do you want to achieve? How much do you need?

Be clear in what you want:

Three tips to help you nail your Private Equity pitch

1. It's more of a sin to ask for too little than too much
2. Look for a partner that brings more than money
3. Understand the Private Equity firm before you speak to them

Tim Hames - Director General @ BVCA

Did you know? Private Equity investment usually lasts for three to five years before they will look to sell their stake in your company.