Is private equity funding right for your business?
While the prospect of external investment can be exciting, even transformative, it’s not something to jump into lightly. There are key questions to ask yourself and points to consider before you go down the route of PE investment for your business.
First, can your business grow?
At the heart of most Privete Equity investments is growth. If your business isn’t growing - or doesn’t have a clear path to scalable growth - you’re unlikely to attract interest. PE firms typically look for businesses with strong fundamentals and the ability to expand rapidly, whether through market share, product innovation, operational efficiencies, or acquisition.
However, growth alone isn’t enough. You also need to be ready for a higher level of accountability.
Transparency and reporting: Can you deliver?
PE ownership brings with it a new rhythm - one that includes regular reporting, structured governance, financial scrutiny, and strategic planning. How comfortable are you with being held to your business plan? Are you prepared to face tough questions about performance, margin, cash flow, and strategy?
These are often what separates businesses that thrive under PE ownership from those that struggle with the new pace and expectations.
Be prepared for discomfort and change
With PE, you may be challenged in unfamiliar areas - asked to professionalise your leadership team, expand into new markets, or digitise operations. It can be uncomfortable, but it can also be incredibly rewarding if you're open to change and aligned with your investors.
This is just as true in Venture Capital (VC), where expectations around innovation and speed can be even more intense. Neither path should be taken without deep thought.
The value beyond the capital
One of the great benefits of PE - beyond the capital injection - is access to a wealth of intellectual, operational, and commercial expertise. The right investor can provide more than just funding: they bring connections, strategic insight, and sometimes the experience of having “seen the movie before.” This can be game-changing if you’re aligned.
Alignment is key. You have to fit the mould - and just as importantly, be comfortable with the demands and dynamics that come with it.
Get advice from people who understand the terrain
If you’re thinking about taking on PE investment - or selling your business to a PE-backed buyer - don’t go it alone. These transactions are sophisticated, often complex, and carry long-term consequences for your company, your team, and yourself.
Surround yourself with advisers who understand not just the deal mechanics but the investor mindset. The difference between a smooth, strategic transaction and a painful one often lies in preparation, insight, and knowing what questions to ask.
We’re here to help
At Azets, our Corporate Finance team works on both sides of the table. Whether you're raising investment, selling to a PE-backed acquirer, or simply exploring your options, we can help you understand what to expect - and how to make the most of the opportunity.
Please get in touch via the form below if you have any questions or would like to explore investment opportunities for your business.
