Is Private Equity Suitable For Your Company?

The revenue generating company has been operating for several years, whether it is investing in cash or completely reforming. If you are interested in taking it to the next growth stage, please consider cooperating with private investors.

First of all, what is “private equity fund”? In short, this is to exchange the capital provided by investors for shares in the company. Private equity funds(PE) are generally related to mature companies with growth potential, which need to be regenerated. A wide range of industrial sectors enjoy the benefits of private capital raising, such as technology, industry, healthcare, banking and finance.

People are often confused about the difference between private capital and venture capital. Venture capital is actually a form of private capital, but it mainly tends to provide funds to young companies such as new enterprises and new companies.

Now that you know more about private equity, don’t stop here. There are many resources to teach you all about private financing. This is just the beginning.

Once you know more about private equity and its operation, we will tell you what you need to do to obtain this type of capital for your company. To start a private placement trip, the first thing to do is to interview potential investors.

We know how complex it is to find the right private equity investors. Therefore, we have listed several key issues. When you find the right long-term partner, you should ask:

How much control will management and shareholders have?

Will there be subsequent investment? So, what are the terms and conditions?

What is the experience of Simao Co., Ltd. in your industry?

Who is the primary contact person?

What happens if either party wants to exit the transaction?

What expenses will the enterprise bear?

What is the investment scope?

What is the capital structure?

For details of the above questions, please read the complete article of 10 questions and ask private equity investors.

In addition to these problems, we always suggest that you have a good lawyer to negotiate on your behalf. Not only do you want to find a law firm with experience in private fund investment, but also you should have business experience that can be qualified for the position of management or founder. Choose your lawyer carefully and find an independent reference.

Parabellum Investments is a specialized medium market investor that invests only the funds previously obtained from successful investments. Our independent investment funds do not include third-party investors such as investment committees or banks. This eliminates the need to negotiate with third-party investors, a typical method of traditional private equity fund transactions, and ensures faster operating procedures and direct communication. If you want to know how to develop your company, please visit our website and contact us immediately.