Why do we keep hearing about Private Equity? (And how can it help you sell your business?)
A Private Equity Group is a company whose principals and managers have broad experience in managing and operating businesses. This group is charged with investing the money that is contributed to a Private Equity Fund by individual investors seeking a higher return on their investment than they can get through more tradition investment vehicles….
Smart owners know that selling your business to a Private Equity Group is a great way to take some chips off the table and fund your future financial objectives. In many cases, the Groups will want current management to remain to operate the company, giving them an interest in the future value appreciation of the business.
Update: Richard Parker writes an article in Forbes explaining why selling to a Private Equity firm is not for everyone. Clinton Lee blogs at AccountingWeb about the type of businesses best suited to PE deals.