What makes private equity a good vehicle to reach the goals of a company looking for support?
- Private equity is available regardless of the climate of the traditional debt and equity markets.
- Private equity is the preferred source for funds when access to traditional debt and other financial tools are too expensive, or in many cases, completely inaccessible due to deal size, restrictions or other factors.
- Access and use of public capital is increasingly difficult for small and medium sized companies.
- Traditional financing for growth enterprises is becoming increasingly difficult.
- The streamlined due diligence process available in private equity transactions results in more expedient closings.
Private equity can be used more easily in:
- Out of favor industries.
- International opportunities.
- As a transition for an estate planning situation.
- As a part of a generational transfer of an enterprise.
- For companies needing additional resources to reach the next level.
- For financing of the divestiture of a subsidiary or operating division by a large entity.
- To replace or extinguish non-traditional or traditional debt with another provider.
