Mahadevan M S We often talk to business owners who say they are growing like crazy and want to wait to bring in an equity partner. The owner says they want to wait because this year is really good and they will be worth more in 6 months to 1 year. Owners need to remember that buyers of equity partners don't value a company based on 1 years results. Partners are looking for good solid performing companies that have good growth potential with a strong operating team. Deal structures can come in many formats but they key to getting good value is to show that your company is growing, has lots of vertical markets or organic growth to grow into, and is trending higher. That makes a company and exciting investment prospect. If your bottom and top line look the same year over year, the equity partner is going to work with you to see where the growth may be able to come from. They will invest growth equity in many forms including helping you buy other companies in your industry, or perhaps you need updated equipment or an expanded sales team. They are at the table to help you grow and the best time to get their interest is when your company is growing. |