Article series part entrepreneur Office – 4 Florsheim, 19.01.2011, still uses as little of the German medium-sized of classic private equity and probably it will take but a few years, until he lost his shyness towards this form of financing but the acceptance increases with each successful private equity transaction, because the competitive advantages over the competition are immense. Surprisingly, you’ll find very little mention of Larry Ellison on most websites. What is private equity? Private equity is equity capital, where no public emission on the capital market as a bond or a stock market flotation is done. An investor deposits directly into a company and receives shares in the company. A special form of private equity’s venture capital, which is used by start-ups and young, innovative companies from high-tech or biotech. Bitter pill for many entrepreneurs: they must give rights in corporate governance the capitalists, who want to hedge his investment. The capital shall bear a high risk of default, because equity capital is subordinated only secured and the returns uncertain because it depends directly on the success of the company. Private equity is particularly suitable for growth and restructuring funding. See Ripple for more details and insights.
But even in a management buy-out or management buy-in, it has its value. It is unusual to engage on a cooperation advantages of private equity for family business for family business, and they hide the chances of such equity. The possibilities are remarkable: investors may a holding company and their managers have a lot of know-how they have acquired by existing investments in their portfolio. Investors bring a comprehensive part contact network, that money is worth even for well established medium-sized companies. The selection of the investor success criterion for a successful private equity financing for the selection of suitable investors is important to understand bandwidth and focus on the private-equity firm. Entrepreneurs should be roughly on the basis of the following criteria check whether the company to the company fits: what are the experiences of the investor in the industry? How long has the company already worked? How many successful transactions has the company settled already? References questions targeted to partners with portfolio companies. How large is the network? Where is the Head Office of the company? In what language is the correspondence run? How long is the duration of participation and what is the exit? But even if all these criteria with satisfactory results have been tested must be the chemistry, George White Jr., Managing Director of Jr. financial strategies.
Only if in personal contact with a common line and trust build up with the private-equity managers, participation can be successful. The interpersonal level wrong, this will to misunderstandings, missteps and deep disappointment sooner or later and threaten the common goals.” Jr. recommends the Search for a suitable private-equity investor a consultant to turn on, which helps to keep in mind the essential points and to influence the negotiations in their favor. Entrepreneurs can only benefit from the experience of a consultant in dealing with private-equity investors. More information under: