Expansion and business growth is often dependent on funding. For many small business owners, private equity financing is their best bet to go from Mom and Pop store to industry giant. With countless firms like Monument Capital Group offering private equities, the common misconception is that getting funded is as simple as filling out an application. Before a firm offers a business funding there are certain characteristics that they must see in a company.
– Having a management team that is strong, skilled, and reliable is important. Equity firms want to make sure that the company they are looking into has a strong backbone and that there is little to no need to work on the existing team.
– The capacity to generate profits is a must. It is only logical for an investor to put their money where it has the biggest likelihood of multiplying. No one will want to invest in a business that barely makes the profit cut.
– There must be potential for expansion. Not all ventures have the potential to grow. Some businesses are meant to be small endeavors. While other undertakings leave room for the internal and physical growth.
– Having a well outlined exit strategy is another vital factor. The worst mistake a business can make is not have an exit strategy. It cannot be stressed how essential it is to have one as early as possible. Exit strategy is the “Plan B” of a business with regards to how it will be managed, or what general direction it will take including the state of its ownership.
– The capability to create value. It is common practice for private equity firms such as Monument Capital Group Holdings to utilize numerous strategies in order for their investments to create value. Acquisitions are added onto platform investments, combined these entities are able to produce a result for both the operation and financial aspects.
If these characteristics are seen in a business vying for funding through private equity firms, the chances of getting the needed financing is higher as opposed to a venture that is sorely lacking these qualifications.
For more information on acquisitions visit: http://www.marketwatch.com/story/monument-capital-group-holdings-appoints-world-class-team-of-science-and-data-experts-to-advise-on-security-and-technology-acquisitions-2014-07-21.
Monument Capital Group Holdings 