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!

[@user-hp1qo2lw4z]

What a simple and effective way to summarise Private Equity - much appreciated🙂

[@mariadsa703]

One day I will also have my own pe firm

[@elemko5]

This is like a mini-MBA! thanks!

[@MCMCapitalPartners]

Thanks Andrew! If there are any additional topics you'd like to see covered feel free to drop us a note!

[@theluckshow9617]

very informative. Thank you

[@edwap038]

Excellent video - really well done. Great questions, and fantastically detailed and useful answers. Thank you both! 🙂

[@MCMCapitalPartners]

Appreciate the feedback Ed! If you have any suggestions for future topics, please let us know.

[@BeFearless_.1]

@@MCMCapitalPartnersjjbi

[@tcarroll76]

Great info! Well done.

[@MCMCapitalPartners]

Thanks for watching Tom, happy to provide perspective on our investment evaluation process. Feel free to shoot us an email with any follow up questions at [e-mail]

[@ianbaxter382]

Are there any sectors or industries that either suit well with a PE arrangement or conversely do not match well?

[@paulrobert3325]

very good conversation. learned a lot

[@MCMCapitalPartners]

Glad you enjoyed the discussion Paul! Feel free to follow up at [e-mail] with any additional questions or ideas for future episodes.

[@qwertypop1001]

Excellent video. Thank you all the way from from Cape Town, RSA :)

[@MCMCapitalPartners]

Glad you enjoyed it!

[@terrancejones5860]

Great video really informative.

[@jasonmileshko2706]

great!

[@wronggg]

Make more videos please, ideally from business owner's point of view.

[@brentpietrafese9723]

Great points.

[@kellenjemeyson7072]

How much debt can we put on it.

[@daylinlott5723]

You invoke Buffett. Do you know what he and Munger said about PE? It involves a humorous story about a horse.

[@MiyanPunctureWaleVsBrahmanVaad]

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