BDO LLP | PRIVATE EQUITY
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MAKE SURE YOU’RE ALIGNED When selling to PE, it’s important to convey a clear vision for the future that all stakeholders have agreed on. This vision must be transparent and achievable, focusing on the medium and long term in order to inspire interest and demonstrate the future potential of your business. CONSIDER THE QUALITY OF EACH OFFER The best offer is not always the highest bid. There are plenty of outside considerations you’ll also need to think about, like the longevity of the relationship itself. You’ll be working closely with whoever you go into business with for the foreseeable future, so it’s important to ensure the deal you strike works for everyone. HIRE AN ADVISOR A good advisor is critical. Not only will they help manage expectations both internally and externally, they can also help you to avoid common pitfalls in the process and ultimately negotiate the best deal for your business. 5. 3. 4.
FIVE KEY CONSIDERATIONS FOR ALL FOUNDERS APPROACHING THE PE PROCESS
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UNDERSTAND THE COSTS Of course, the ultimate goal when approaching PE is to sell for profit. However, there are also a number of costs involved in the process. Vendor Due Diligence is one, then there’s the cost of hiring an advisor. But perhaps the most overlooked cost is time – not just for you as a founder – but all internal management teams who’ll have to dedicate hours to ensuring the process runs smoothly. PREPARE FOR TRANSPARENCY There’s no hiding when it comes to PE. As a business owner you must be prepared to lay all your cards on the table. The more open and upfront you are about the details of your company, your financial records and future projections, the smoother the process will be and the better your relationship with potential investors. 2.
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