Business Owner Q&A


Below are some of the most common questions we get from business owners. We will continue to add questions as appropriate.

It’s a difficult question. There are so many significant misconceptions about private equity. Ask three associates in our firm this question and you may get three different answers, each of them defensible. The most common misconception is that a private equity buys a company only to take a fiscal chain saw to it, cutting off live limbs to optimize cash flow. This image is not representative of the vast majority of private equities. In fact in a number of deals we’ve facilitated or analyzed, profits have temporarily declined after private equity acquisition because of intensive investments designed to scale the acquired business. These growth oriented investments are often manifested in sales & marketing, production upgrades, geographical expansion, product & service diversification, research & development, strategic acquisitions… The vast majority of private equities are interested in growing the business they buy, not in disassembling or gutting them for a short term profit.

We are happy to answer any additional questions you may have. If you have any questions we have not answered please submit below and we will respond quickly.






Business Owner Q&A