How to Find the Right Private Equity Partner

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Private equity

Choosing the Right Kind of Investor is a Sure Bet in Growing Your Business

If you want to grow your business by funding it with private equity, you will want to find a partner who can help you reach that objective. Here are some things to keep in mind that should prove to be helpful in doing that:

? Note that the investment profiles of large corporations, angel investors and venture capitalists differ significantly, and they each have a unique motivation and method they use to generate income. Because of this, you will want to look for an investor whose goals seem to harmonize with yours to increase the odds for success.

? When you form your partnership, be certain that both you and your partner have a clear understanding of the roles you are accepting and the way in which your investor will help the business to grow. In addition, try to keep the lines of communication open because future events may call for an adjustment to those expectations.

? Focus on the financial, professional and personal goals of both parties, and find areas where you can work in tandem to reach them. In most cases, your investor will want to exit by a specified date and may have an exit price in mind as well. These two issues will have a significant effect on the way they view a number of major decisions, and they should be discussed to avoid future conflict and deal with your expectations amicably.

? Remember that most investors have experience in handling commercial failures and successes, and their advice can be quite valuable. They may also have an abundance of contacts, perhaps potential clients, who could help in growing your business.

? Private investors are also key members of a business? management team, and building a strong, enduring relationship with them is essential, just as it is with others on the team.

Read more at Inc.