Selling your business to private equity

Securing an investment from private equity investors is often one of the most critical steps in the life cycle of any business. There are various reasons why someone would want to offer their business to private investors. For entrepreneurs it can be an essential means of establishing the capital required to get a brand new business off the ground. For existing company owners looking to evolve their business by expanding into new areas or projects, it can be a stepping stone towards such development.


Whatever the reasons may be, key to success in this area is knowing how to present yourself, and your business, in the most impressive way possible.


Angel investors


An angel investor is the term used to describe an affluent individual who provides capital for a business start-up. They are also known as business angels, informal investors and angel funders, and they occasionally work in groups in order to pool their investment capital or offer mentoring and business advice. In return for their investment they typically receive convertible debt or ownership equity.


Hints and tips


Seeking out potential investors and then making a pitch can feel like a daunting process, so learning lessons from people who have achieved success in this area is the best way to improve your own chances of success. Consider the following:


  • Seeking out potential investors. Research is key in this area and the evolution of the internet has made this easier than ever. Search for investors that have a track record in investing in your industry and who have a positive reputation based on unbiased feedback. AnaCap is a specialist private equity firm and a good example of the sort of successful investor that should be sought out and contacted.


  • Preparing your pitch. It is probably fair to say that this is one of those areas in which it is not possible to do too much preparation. Ensure that all of your information is accurate, detailed and easy for you to access. Financial rigour is especially important, as this will be of most interest to investors, so try to pre-empt their questions in this area.


  • Tell the story. Do not be tempted to slip into the trap of simply listing facts and figures. It is important to demonstrate detail but at the same time, remember the intention is to inspire. Convey excitement and ambition by telling your story through images and personal reflections as well as words and numbers.


Preparing for the next step


Investment from private equity investors can be the key to successfully making that next step in your business strategy, whether this is bringing a new venture to fruition or branching out into new territory. So much can rely on this investment that trying to secure it can seem hugely intimidating, and the temptation is to step away before even trying. Such a lack of ambition is a mistake. By making the proper preparations you can ensure that your business is presented in the most attractive way possible and is therefore best placed to win investment and pave the way for the future.