The Big Difference Private Equity Brings
The common attribute of good private equity investors around the world is that many are strategically brilliant. The best people in private equity have been those who cashed out. They can walk through the soil of an unknown field and instantly know the blood and sweat involved in getting that level of sweet, moist richness. They have planted their own business seeds in the topsoil of loans and bank financing. They have lived through the seasons it takes to germinate and grow a good crop, to get past the heartbreak of hailstorms, and reap the rich harvest. They know seeds can not be expected to produce green fields the very next quarter—they do not suffer from “quarteritis”. They appreciate the life flow of business. They know what it takes to bring seeds and plants to maturity. They respect what has gone into making your business.
Use Private Equity to…
Buy or recapitalize companies
Inject capital for growth (minority investment)
Give liquidity to owner (buy out control)
Make the transition from your business supporting your lifestyle to the discipline of a professionally managed business
Change or step up Strategy
Add to communication competence
Re-energize the business, refresh the team
Manage risks
John Seminerio, an engineering graduate from Waterloo, started up the high-tech business Abatis in Vancouver and partnered with the private equity firm Celtic House to get seed money. Abatis sold for over $2 billion and Seminerio went on to repeat his success. Now Seminerio has a hand in the venture capital funds Yaletown and Magellan Angel Partners where he puts his remarkable leadership talent into the growth of the high-tech sector of the economy. Imagine having the privilege of receiving personal attention from such a successful serial entrepreneur. So you see how private equity can do far more than lend you money: Private equity can help you grow revenues more than you could on your own or with a bank loan. The impact on your business is that private equity wants to see your business do well because they get their money back and a whole lot more. They also reap the uplift of bonus performance. They are in it for the same end game of profits as seriously as the owner.
This shift in financing attitude is not only radical, it’s downright revolutionary. It’s dangerous and dazzling. It’s the biggest wowza benefit of private equity. This is a true win-win partnership.