2. A wise man’s advice
on PE deals!
: Ankita Mohnot
If
we
ask
1000
entrepreneurs
what’s
their
biggest
barrier
in
doing
business,
number
1
response
will
be
lack
of
funds.
At
various
points
they
feel
a
PE
fund
can
help
them.
Not
just
with
money
but
also
with
a
broader
outlook
and
the
PE
investor’s
experience
of
helping
other
businesses.
Now
how
to
approach
a
PE
fund?
Before
you
go
for
the
search,
deDine
it
for
yourself.
Why
do
you
want
the
money
in
the
7irst
place?
To
get
out
of
Dinancial
stress
or
you
need
it
for
growth?
There
are
mainly
2
types
of
PE
Dirms
• Stressed
PE
Firms
• Growth
oriented
PE
Dirms
Stressed
PE
7irm:
Are
those
PE
Dirms
which
prefer
investing
in
companies
under
stress,
or
declining
proDits.
Their
professionals
are
experts
in
turning
around
such
cases.
They
look
to
the
stress
but
at
the
same
time
focus
on
the
potential
of
the
business.
They
will
evaluate
if
they
can
convert
it
in
a
proDit
making
business.
Their
objective
is
to
sell
it
at
much
higher
value
than
it
had
purchased
it
on.
This
is
a
kind
of
very
risky
investment
coupled
with
a
big
challenge.
It’s
a
different
kind
of
mindset
altogether
and
you
need
to
approach
these
investors
with
a
clarity
in
your
mind.
Ask
yourself:
What
is
the
true
potential
of
my
business?
Why
can’t
we
achieve
it
on
our
own
strengths?
Except
funds
what
other
factors
are
stopping
us?
Be
ruthless
with
yourself.
These
questions
will
come
up
at
some
stage.
3. Growth
PE
Firm:
These
are
PE
Dirm
which
invest
in
companies
already
making
proDit
but
they
need
to
invest
in
the
business
to
enhance
their
competitiveness
in
the
marketplace.
It
might
be
for
new
technology,
getting
into
new
areas,
or
to
achieve
true
potential
of
their
business.
Once
you
are
clear
on
your
need
for
fund,
the
next
question
is:
How
much
do
you
need?
Investors
have
their
own
parameters
about
minimum
and
maximum
limit
on
funds.
Your
case
might
be
strong
but
a
fund
which
deals
in
millions
of
dollars
won’t
be
interested
in
a
deal
of
say
some
20
crores.
Knowing
your
needs
will
help
you
narrow
down
your
search.
Now,
the
next
Dilter
in
your
search
will
be:
The
industry.
PE
investors
like
to
play
in
certain
industries.
Simply
because
they
have
expertise
and
experience
in
these
industries.
They
know
the
best
practices
and
bench
marks.
They
also
know
the
best
partners
who
can
compliment
your
strengths.
It
works
better
for
you
as
well.
Be
very
clear,
more
than
even
the
money
it’s
their
experience
which
counts.
In
a
nutshell:
Know
why
you
need
the
money?
How
much
you
need?
Apart
from
money
what
other
expertise
you
are
looking
for
your
business?
It
will
help
you
get
a
better
PE
deal
for
sure.
..............................................................................................................................................................
4. Presented
by:
Expanza
Access
Limited.
www.expanza.in
We
are
a
SME
consultancy
based
at
Mumbai,
India.
For
any
funding
related
query
connect
with
us:
Connect:
info@expanza.in
91-‐22-‐42100000
All
rights
reserved.
You
are
free
to
share
the
report
as
is,
without
any
changes.
