How do Private Equity Companies Help To Sell Your Business?

 

How do Private Equity Companies Help To Sell Your Business?

Private Equity refers to ownership in an entity that is not publicly traded or listed. Since these funds are private, their capital is not listed on the public exchange. Private Equity acts as a great investment option for high-net-worth individuals and institutional investors to directly invest and acquire an equity stake in companies. Private Equity companies require direct investment to buy equity investment in companies that require a substantial amount of money and the investors must have a solid financial background.




How Does Private Equity Work?

  • Vulture Financing: Also known as Distressed funding, money is invested in underperforming or troubled business units or assets. The motive behind this type of investment is to make required changes in the operations and the management of the business unit that results in increased revenues and profits. 

  • Leveraged Buyouts: The process involves buying out a company completely or with a majority portion of it to transform its business and financial health and later reselling it for a profit to an interested buyer or through conducting an Initial Public Offer (IPO).    


  • Real Estate Private Equity:  Investing in Private Equity real estate requires long-term investment outlook and significant upfront capital commitment. This type of funding allows high-net-worth individuals to invest in equity and debt holdings linked to real estate assets. 

  • Funds of Funds: In this type of funding the primary focus of investments is into other funds majorly mutual funds and hedge funds. The aim of this type of investment is diversification and proper asset allocation. The portfolio contains a diverse fundamental portfolio of other funds.   





Private Equity Company Fees.

  • Management Fee: The management fee is about 2 percent of the total committed capital that is allocated for investment in the fund. The fee includes the fund’s operational and administrative expenses that are required to run the fund such as salaries, deal fees, etc. 


  • Performance Fee:  A performance fee is the percentage of the profits generated by the fund. This fee can be as high as 20 percent on the fund providing a positive return.   





Resurgent India’s Approach on Private Equity. 

Resurgent India is a renowned and trusted name in Investment Banking and Merchant Banking Industry. The company holds expertise in advisory and implementation of Private equity transactions across numerous sectors. The company holds strong relations with international private equity players and understands the investment needs of the financial investors. Their panel of financial experts helps in executing the entire process from identification, initiation, structuring, valuation, and execution. Resurgent India has a proven track record of successful buyouts, distressed financing, mergers & acquisitions, capital restructuring, private equity funding, venture capital, equity planning, etc. The brand believes in keeping the interests of sellers and investors in mind, and offers win-win solutions for both parties. 


original source of this blog : https://www.resurgentindia.com/how-do-private-equity-companies-help-to-sell-your-business

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