When is Private Equity right for your business?

Introduction

When is private equity right for my company? Watch Nabil Lodey, CEO at Envitia, and Tom Purkis, Partner at Maven, discuss the characteristics of private equity and how it can help ambitious businesses to grow fast when the conditions are right.

Transcript

Nabil Lodey: You hear about private equity, you hear about the model, you hear stories of it's very much about the numbers rather than growing a business, and so we went on a fact-finding mission just to understand what forms of exit would suit the business, what's right for me and the leadership team as individuals, you know where would the risks lie for us and could we grow If we were acquired by a corporate or would we have a better chance of growing as part of an MBO with a private equity backing.

Tom Purkis: in terms of common obstacles to growing, people is one of the core things we see again across our portfolio at the moment it's having the right people in place at the right time, the right resource. Clearly strategy is key it's important to write the right structures and the right incentives but it's building that team and culture to deliver a plan without the buy-in of a of the full workforce whether that's a junior employee to the managing director it's key that all those people are bought into the journey, the direction of the business and they're all able to work together to to achieve the goals that have been set.

Nabil Lodey: Different people rise to the challenge in different environments. Some people fit very well in a corporate structure, especially when they have greater support around them. Maybe they are not yearning and aspiring to be empowered and grow, they like the processes and they like a certain structure and pace of growth.

In an SME the people who do really well is the people who would get bored in that corporate environment the people who are actually saying yeah you know this isn't good enough I want to challenge the status quo they're the people we can attract because we've got the ability to say look join us on this journey and if we can get those individuals and we can get a culture around them to support them, then there's some amazing things that we can do together