Asking for money from private equity investors such as ourselves, here are some practical private equity investment tips to keep in mind:
Continually take temperature. Only 5-10% of entrepreneurs I work with ask closing questions like: Have I answered all of your key questions? Or, even better: How do I compare with the other 100 business plans on your desk and what is the likelihood we’ll reach serious due diligence? Get to the truth early. Waste no time.
Course-correct based on feedback. Chances are objections you hear at one private equity group will be concerns at another. Incorporate the feedback you hear-either by adding it or refuting it. Think of this feedback as sparring practice. It is like training that makes you stronger in fighting real challengers to your success.
Conduct your own due diligence. This process is the foundation for the long term partnership. Experienced entrepreneurs know that the investor relationship is akin to marriage.
Finally, don’t sign the deal unless you can comfortably answer the question: Will they be a good partner when things don’t go according to plan? Because we all know, they never do
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