Two big advantages of a private equity acquirer are that they typically come with cash and don’t meddle in your business. Although they are big drivers of growth, don’t expect them to pay a premium. It’s also unusual for them to buy you out 100% and allow you to walk away.
The transaction value for your typical private equity firm is in the price they pay, followed by growth so that they can exit at a higher price in a few years’ time. It is unusual for a private equity acquirer to pay a premium for synergies or future value. If it is growth capital that you require, and private equity is the right solution for your business, then it is key to find the right one – but make sure you approach the market prepared and ensure that your approach results in more than one party at the table.