How Do Private Equity Funds Evaluate Businesses?

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. 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)
• Advice for business owners looking to sell their business? (21:51)

MCM Capital Partners is a Cleveland, Ohio based lower middle market private equity firm focused on partnering with niche manufacturers and value added distributors generating over $10 million in revenues and between $2-$8 million in EBITDA. We aim to drive value creation and top line growth at our portfolio companies through deep industry experience, operational expertise and business development support. For more information, visit our website at www.mcmcapital.com Thank you for watching!