The private equity firms really don’t want to run a business. They want you to do that. They will provide guidance and support, and at a board level provide you resources that you probably don’t have today. The object of the game is that with their help you can build the company to a much greater value and size.
Generally speaking, private equity groups, over a period of 3-7 years, want to accomplish that goal and make a second sale. When they cash out, you’ll also cash out and it’s very probable that your second check could be much larger than your first check.
Posted by Roy Graham.