Selling company to investors

Selling your company to investors?

Private equity can no longer be ignored as a potential buyer and financing option for a business acquisition. But what exactly is private equity, and when is it a suitable option for you as a business owner? We take you through the most important facts you need to know about private equity.

What is private equity?

In short, private equity stands for private equity, but we also use it to describe a group of investors and investors who participate in companies outside the stock market. They usually do this for a certain number of years, after which the investor sells the stake at market value.

When do you choose private equity?

The presence of investment companies in corporate acquisitions has soared in recent years. Several factors underlie this. These include lack of succession, shortage of growth capital and support for internationalization. Moreover, it is much more difficult to obtain financing through the bank. At the same time, low interest rates are playing a role, making investing in companies a more attractive way to generate a return on capital.

For you as an entrepreneur, this means that a private equity party is a good option when selling your company. Selling shares to private equity maintains your equity and allows you to benefit from a wider network of knowledge, expertise and experience. It also often has an effect on expanding service offerings and geographic coverage. Private equity thus offers a solution to achieve the desired growth. This can be done either by selling completely at once, or by jointly drawing up a growth plan to make your company more robust. Via a pre-exit, you then secure part of your capital in advance and sell your shares in phases.

Benefits of private equity

  • Attracting investors without being publicly traded
  • Access to knowledge and expertise from the private equity fund
  • Capital available to quickly realize goals and ambitions
  • The succes of your company is the common interest
  • Expension of network

Collaborating with an investment fund

If you are considering participating with private equity, you are no doubt curious to know what that looks like in practice. There is no conclusive picture to paint because each investment company has its own reasons and interests for investing. In short, we distinguish in private equity investors who are "hands-on" or "hands-off," which says a lot about the level of commitment. Which form is best suited to your personal situation and whether it suits the potential buyer, we carefully explore in various discussions.

Do you have an acquisition issue?

Are you considering selling your company and would you like to know whether private equity is a suitable option for you? Please feel free to contact one of our advisors. For more than 25 years Marktlink has been the M&A specialist for entrepreneurs in the upper SME segment. With 17 offices in five European countries we have an extensive international network and local market knowledge. Our M&A specialists guide you with commitment and passion to the deal of your life. At Marktlink you as an entrepreneur are central, we strive for the best result for you.

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offices
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value delivered (2023)
Get in touch

Do you have any questions about investing or private equity? Do not hesitate to contact our experts, they are happy to help.