Companies seeking to expand usually have a competitive advantage, whether it be a brand, technology or market niche. They are often a well-established company with a proven product or service and a turnover of between $2 and $50 million. In addition, they are typically the number one or two company in their defined region and industry sector.
Strategic growth maybe organic (by developing new export markets, building operations domestically, or expanding production and product range) or through the merger with or acquisition of one or more complimentary or diverse businesses.
When an established company seeks significant growth, they will likely need to access external funding and/or raise bank debt to fuel the process. In many instances, companies at this stage of development need to approach Private Equity firms to provide the majority of funding for their growth and expansion.
Private Equity firms invest for the purpose of making substantial returns for their investors. They look for a clear path to an exit and expect that any company they invest in will undertake a significant liquidity event – typically a trade sale or listing on the public market, within three to five years post investment.
Getting the company ready for Private Equity investment is critical to ensuring that the deal negotiation and final transaction price will be fair and reasonable from the existing shareholder’s perspective.
Through our Reverse Due Diligence approach, Twoeyes can help business owners, Boards and CEO’s to identify and mitigate the key risks, as perceived by the target investor. We do this by making sure that the right questions are answered before the PE investors ask the question.
For a confidential, obligation-free meeting to discuss how Twoeyes can help your company achieve a Private Equity investment at the best price, you are invited to contact Twoeyes Managing Director, Conor McKenna directly on 0402 26 46 70.