Part I: Preparing for a Transaction
First in the series.
To increase the likelihood of ultimately closing a transaction with a private equity investor or buyer, the key is preparation. Preparation is divided up into several steps.
First, before seeking a potential investor or buyer, the owners of the business should go through a semi-formal process to confirm the owners and key members of the business have shared, or at least compatible, motivations and priorities in a pursuing a potential transaction (e.g., capital for improving or growing the business, building a brand, creating value for a future exit, or cashing out). This will allow the business to focus on those investors/buyers with aligned expectations, and ultimately gain the required approval to close a transaction from the owners and key members of the business.