In our eBook Partners in Your Business, guest contributor Gareth Banks from Champ Ventures explained how private equity works and what sort of opportunities private equity investors look for.

This blog comes from Chapter 1 of the eBook, in which Gareth answers the following questions:

• What is private equity and how does it work?
• What type of business opportunities does private equity look for?
• As a business owner, how can I benefit from private equity?
• As a private equity investor, what affects your appetite to invest?
• As a business owner, how do I become private equity ready?
• Where do I go for more information?

Private equity is much more than just some capital.

You can get capital from plenty of places, but private equity aims to be an aligned partner, helping a business to grow, set strategy and problem-solve.

In our eBook Partners in Your Business, guest contributor Gareth Banks from Champ Ventures explained how private equity works and what sort of opportunities private equity investors look for.

We have distilled some of Gareth’s advice down into this cheat sheet, to help you make your business private equity ready.

Business owners often seek a business valuation after being prompted to do so by a 'significant event’, for example:

• a family break-up
• retirement
• need for business restructuring
• bank lending requirement
• purchase offer
• bringing in a new shareholder or partner, and so on.

In this video I explain how valuation can actually be used as an ongoing management tool, adding value while you’re running the business and also potentially boosting value on exit.

More than a third of respondents to our recent survey indicated they plan to invest in new plant and equipment in 2018–19, with most of these investments driven by the need to adapt to new technology (61%) and meet replacement schedules (45%). Just over 16% indicated the planned investment was due to new contracts.

If you’re in this situation, you may need to seek finance from a bank or other lending institution. 

As highlighted in our eBook, Managing your banking relationship, there are many things you can do to influence your bank's 'appetite' for financing your business.

Private equity is not for everyone but, in situations where it aligns with your business goals, it can be very effective.

So what do you need to know if you're thinking about seeking private equity investment?

The following infographic provides some private equity basics, for anyone starting out on the PE journey.

In our eBook Partners in Your Business, guest contributor Gareth Banks from Champ Ventures explained how private equity works and what sort of opportunities private equity investors look for.

In this blog Gareth answers the following questions:

• What is private equity and how does it work?
• What type of business opportunities does private equity look for?
• As a business owner, how can I benefit from private equity?
• As a private equity investor, what affects your appetite to invest?
• As a business owner, how do I become private equity ready?
• Where do I go for more information?

Business owners often seek a business valuation after being prompted to do so by a 'significant event’, for example:

• a family break-up
• retirement
• need for business restructuring
• bank lending requirement
• purchase offer
• bringing in a new shareholder or partner, and so on.

In this video I explain how valuation can actually be used as an ongoing management tool, adding value while you’re running the business and also potentially boosting value on exit.

We have had many people come to us over the years looking to move from an employed environment into their own business.

More commonly, however, our business-buying clients tend to be established business owners with successful businesses who are looking to grow further.

The choice for these clients is:

• ‘Do I grow organically?’ i.e. build on what they already have, or
• ‘Do I grow inorganically?’ i.e. buy a complementary business to ‘bolt on’.

It’s about evaluating the pros and cons of spending money upfront to purchase a business and network that someone else has already developed, versus keeping your money and spending the time and energy to develop it yourself.

Private equity is much more than just some capital.

You can get capital from plenty of places, but private equity aims to be an aligned partner, helping a business to grow, set strategy and problem-solve.

In our eBook Partners in Your Business, guest contributor Gareth Banks from Champ Ventures explained how private equity works and what sort of opportunities private equity investors look for.

We have distilled some of Gareth’s advice down into this cheat sheet, to help you make your business private equity ready.