private equity

In the first of an occasional series, Melanie Stern pilots a discussion with business families to examine how they view the private equity world. She finds perceptions are changing and the benefits are flagged up – but doubts linger about its role in business

Roundtable panel

Private equity money has always rung alarm bells for family businesses – no one wants to relinquish power to outsiders. But outside input can have myriad benefits, including scope for expansion and independent pension arrangements, writes Bob Reynolds

Five years ago, the typical family business private equity deal was £10 million for 30% of the enterprise. Now, it is more usual to see venture capitalists paying £100 million for 100% of the business.
 

Richard Willsher is a freelance journalist specialising in finance.

Private equity can be a useful option for a family business pondering growth strategies or exit plans. But, as Richard Willsher explains, investors will be looking to gain some measure of control

If the idea of introducing non-family equity into your business has never had much appeal it may be worth giving private equity a second look.

Georges van Erck is Managing Director at JPMorgan, London. He has more than 30 years of investment banking experience, most of which have been spent providing corporate finance services to family-owned companies.

At a time when banks are increasingly cautious about lending money, the stock market can be an attractive alternative source of capital for a family business – and, explains Georges van Erck, an IPO need not mean the family loses control of the business