Monday, January 28, 2013
Could your business prove profitable for private equity investors?
State Of The Union
While you may well be looking for private equity, I’m afraid that you do need to engage the selfish side of your brain before going any further. Now hopefully if you’re in business you have some aspect of bloody-mindedness in order to be truly focused on your goals. That’s not to say it’s an essential attribute, but certainly one that in my experience can be valuable if utilised sparingly and to great effect.
Of course what I’m talking about is your business and, no matter how great it may look from the outside for a private equity fund or investor, it is at the end of the day just that, it’s your business. Before moving forward with a private equity plan or proposal it is certainly worth exploring whether it is a viable option from your point of view. There are many ways to plot a path for seeking private equity investment while also a similar number for discovering whether an investment will be successful and ultimately answer the question of what’s in it for you.
The Tool To Do The Job
One of the easiest and most effective ways to view how sustainable investment into a business is likely to be is by using deal flow software. This is a package used by both business owners as well as investment groups to assess whether an investment is worthwhile. As a business owner, you can use this deal flow software to run a number of scenarios relating to your business in the case of it receiving investment. This will help you put together clear projections based on current market conditions and enable you to firstly decide whether seeking investment is a good idea, and secondly, it will assist you putting together a winning proposal to present to an investment group.
The benefits of using deal flow software are two fold in that it shows you the potential dangers and benefits facing a business, and potentially could alert you to major financial problems that you perhaps weren’t already aware of.
Valuable But Not Definitive
Deal flow software is merely one of many valuable tools available to both business owners and private equity groups who are looking for investment or investment opportunities. This shouldn’t be used in a cavalier manner however and an assumption that everything the software says will come to pass. A great deal of work should still go into an investment presentation and using the deal flow software should merely enforce your message, not be the key element of it.
Author Bio: Rob is an investor in the entrepreneurial market, and has vast experience in working with deal flow software as well as strategic consultancy for a variety of small businesses.