Well Capitalized

How Do Private Equity Firms Value Companies?

We interviewed Mark Mansour, Managing Partner at MCM Capital Partners, to shed some light on private equity and how private equity firms evaluate potential investment opportunities.

See below for discussion topics.

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Among other things, Mark discusses:

  • What is private equity? (0:17)
  • What exit options are available to a business owner? (1:22)
  • How do private equity firms value a business? (2:53)
  • What two attributes hold the most weight when assessing the value of a business? (6:28)
  • In what circumstances does private equity become the best exit option? (6:58)
  • What should a business owner look for in a private equity partner? (8:42)
  • What protection does a business owner have after selling to a private equity fund? (10:20)
  • What type of reporting does a private equity firm require? (13:07)
  • What are the advantages/disadvantages of partnering with a private equity firm? (15:46)
  • What do private equity firms look for in a management team? (18:47)
  • What advice do you have for business owners looking to sell their business? (21:51)