Tags
founders, Negotiation, terms, Value Creation
An investor in a private equity fund invests on the pretense of relatively high returns (usually 20%+ per annum). When a potential portfolio company learns of this target, he/she often adopts a look of, “There is no way I can guarantee 20% as founder.” This is because many entrepreneurs don’t fully understand the value creation
Read MorePrivate equity is very much about growth through acquisition. Acquisitions give the private equiteer the ability to create instant value through multiple arbitrage, synergistic cost savings and synergistic revenue increases. While synergies can take time to realise (some may be instant), it’s the multiple arbitrage that can really boost value quickly. The Reality Here’s what
Read More