Private equity (PE) is increasingly involved as a buyer group in the sales transactions we facilitate. Right now, 60% to 70% of all sales involve an investor. Private equity is also more common in purchase transaction nowadays. Together with our clients, we look for appealing and interesting SMB businesses that companies can participate in.

What is private equity?

Private equity literally means private capital but is increasingly used to denote a group of investors who do not use the stock market to participate in companies. Private equity funds, or venture capital companies, are companies that specialize in investments using this private equity. To raise an investment, a private equity firm gathers capital through – for example – pension funds, insurers, banks, wealthy families, and private investors. The funds then invest this capital in unlisted companies. Once these companies sell their participation after a number of years, the investor receives his share back at market price.

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When is private equity a good choice?

Even the most successful businesses sometimes need capital to invest. This could be during a busy acquisition period, just before an IPO, international expansion, the development of a new product, or other major actions that temporarily require extra money. As a company, you could ask the bank for this capital, but chances are that the bank deems the risk too great. In this case, selling part of the company to private equity is the solution.

By selling shares to private equity, you maintain a level of equity that allows you to attract other forms of financing. What’s more, private equity funds often have stakes in dozens of companies, giving them access to a broad network of knowledge, expertise, and experience. So when you need (temporary) capital in the short term for an IPO, acquisition, or international growth, selling to private equity is a strategic move.

Selling to private equity

Selling to or collaborating with private equity equals opportunities for your company. Private equity firms and venture capitalists provide financing for your company when the bank deems the risk too high. As such, private equity offers a solution to achieve the desired growth step after all. What’s more, private equity also offers options if you decide to sell your company in its entirety. The many advantages of private equity make this form of financing and acquisition attractive for SMB entrepreneurs. For example:

  • You can attract investors without being a listed company
  • You can count on the knowledge and professional competence of the private equity fund
  • You have access to capital to achieve goals quickly
  • You have a common interest: the success of your company
  • You can use the private equity firm’s extensive network

What does private equity do?

The private equity market has seen significant growth over the last few years. Many parties have joined the trend, maintaining a sustainable vision of private equity acquisitions and financing. The starting point here is responsible growth with an eye for the company and its employees. Thanks to the extensive network behind private equity parties, they can nominate the right managers and board members to achieve the existing vision of the future. What’s more, private equity injects capital that enables the desired growth objectives, or that secures part of your pension. This means collaboration with private equity rests mainly on mutual interests and trust in the expertise and resources of both you and entrepreneurs and your private equity partner. It allows you to gain the maximum benefits from this collaboration.

Are you opting for acquisition via private equity? And would you like to hang up your hat as an entrepreneur immediately? This is easy to achieve too. The private equity will appoint an MBI person to realize a buy-in immediately, allowing you to take a step back.

The advantages of private equity

  • Accelerated business growth
  • Substantial injection of capital
  • Access to knowledge and experience
  • A large and relevant network
  • A common interest

Active process support

Our experience with private equity teaches us that the collaboration with a PE investor ensures, above all, that you get your hands on capital while still keeping control over your company so you can make your vision a reality. This is because the investor does not have the ambition to take over your role. As such, you should see the collaboration as an opportunity to draw on the in-depth knowledge and experience of an investment partner who is pursuing the same interests. What’s more, we actively search for investors who fit you and your company. You decide what feels right and which choices you make – and you can always count on our honest advice./p>

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Your company profile in the spotlight

As soon as you decide to collaborate with Marktlink, we make sure your company receives plenty of attention from potential private equity parties. We create a company profile that reflects your wishes, and we collect information from interested parties. We talk to investors to determine whether they are on the same page and whether your interests and those of the PE party are aligned. If so, we will introduce you to the potential investor. As you move through this process, you can once again count on advice, insights, and support to make sure you make a well-informed decision. It is how we achieve the intended goal together, and you can start the collaboration feeling you made the right choice.

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Applying for private equity financing

It is not always easy to secure capital for your growth plans. Private equity offers a fast and sound solution when the bank is not amenable to your plans. Marktlink has more than 25 years of experience in private equity financing – among others – and will guide and support you throughout the entire process.

Contact us to discuss the possibilities of private equity for you and your company. Our specialists are ready to assist you.

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