Private equity is the term used to indicate a group of investors who participate in companies outside the stock exchange. Private equity funds, also known as private equity firms, are companies that specialise in investing with this private capital. To be able to invest, a private equity firm collects assets through, for example, pension funds, insurers, banks, wealthy families and private investors. The funds invest this capital in unlisted companies. When these companies sell their participations after several years, they repay the investors their investment, including the return that has been achieved.
Marktlink sees this group of buyers more and more in the sell-side transactions that Marktlink advises on. Currently, 60% to 70% of all sales directly or indirectly involve a private equity investor. Marktlink also increasingly collaborates with Private Equity on the purchase side of transactions. Together with our clients, we are looking for attractive, interesting SMEs in which companies can participate.
Your advantages in working with Marktlink Mergers & Acquisitions
Private Equity sometimes suffers from a bad reputation, they are seen as money-hungry, pumping a company full of debt and bleeding it dry. This is not Marktlink’s experience at all. There is no need for worry, working with a PE party has several advantages:
- PE-parties have a common interest with you, they are just as happy with a good result as the entrepreneur
- Accelerated growth is possible by injecting capital
- Private Equity parties take knowledge and experience with them to further improve the business
Private Equity’s role in the SME field
Private equity can play an important role for SMEs. Private equity firms and venture capitalists can provide financing for your business while a bank considers the risks too great. Private equity can offer a solution to take that planned growth step and obtain growth financing. Even if you want to sell the company as a whole, for example, because succession within the family is not possible, private equity firms can offer a good option and a future for your carefully crafted business.
Private Equity and Marktlink Mergers & Acquisitions
Thanks to Marktlink’s extensive database and its warm connections with all industries within the vast SME field, Marktlink is a good partner for Private Equity parties. Just as Marktlink speaks to ambitious entrepreneurs with diverse wishes every day, PE parties are looking for companies to participate in every day.
Joining forces with an investor ensures that you get hold of the assets that would otherwise be difficult to obtain. The entrepreneur ‘acquires’ a partner with a lot of experience who, moreover, does not want to take the entrepreneur’s place. The investor is more of a committed sounding board. Another advantage is that by attracting an investor, the entrepreneur can also secure part of the entrepreneur’s assets. This is possible with minority stakes as well as majority stakes for the investor. In order to avoid making the wrong choice for your partner in a Private Equity, it is important to make a good inventory of the entrepreneur’s needs and to properly incorporate these needs in the information memorandum. We then identify which investors fit within this profile. We can then speak to five to ten investors. In this way you, as an entrepreneur, make the right choice out of the many investors in the country. Would you like to know more? Or would you like appropriate advice? Please contact one of the many specialists of Marktlink Mergers & Acquisitions. They will ensure that you make a responsible choice.