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So you want to do a Private Equity deal? 14 April 2005. Critical Success Factors. It requires work- small chance of success You will need to show commitment Better to bring a deal to an investment house Allows you to control process Better quality interaction with investors
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Critical Success Factors • It requires work- small chance of success • You will need to show commitment • Better to bring a deal to an investment house • Allows you to control process • Better quality interaction with investors • And, of course, network like crazy
So where do I start? • Backable line experience • Full profit and loss and balance sheet responsibility • What is your role • Sector knowledge is invaluable • Operational experience is always sought by investment houses
How do I find a business to buy? • Segment the market / markets of interest • Identify target companies which meet your criteria • Press searches • Brokers industry notes • Brokers notes on quoted businesses • Work out an approach strategy • Select your advisor
How do I find the right broker? • Produce an investment case • Select a population of investors to engage • Knowledge of who would be interested • Approach through a known advisor • Agree what needs to be done • Its an art not a science
What do I do then? • Your advisor will know what to do • Each situation is unique • The hard work is just beginning • It’s a marathon not a sprint • Ensure you have the time • Don’t over promise / under promise and over deliver
So what now? • Come and chat • Outline your work programme • Do the preparatory thinking • Commission research • Network like crazy • Build a relationship with a trusted advisor • Be patient ……………. Clive Hyman, Managing Director Hyman Capital Services 15 Welbeck Street London W1G 9XT Tel: +44 (0)70 9286 4009 Fax: +44 (0)70 9286 4010 Mob: +44 (0)78 0263 4163