Ever wondered how private equity investors grow their portfolio companies? Their goal is simple yet ambitious: triple the value of a small business in 3–5 years before selling it to a strategic buyer or another private equity fund.
Why the rush? Their investors expect a hefty 15–20% annual return on their money.
So, what do these suits with MBAs do to make it happen? Here’s the playbook:
- Engage in strategic planning
- Crystallize the business vision
- Make the business self-managing
- Document and streamline processes
- Pursue product and/or geographic expansion
- Create and track a dashboard
- Build and scale recurring revenue
Surprised? Probably not. You already know these are steps you should take to grow your company’s value, profit, and marketability.
But here’s the kicker: why give up 25–75% equity to do the things you already know need to…