What is the right private equity deal for you?
Different types of private equity deals will suit different situations – from family businesses looking to succession plan, founder-led firms looking to de-risk or non-core divisions of larger groups looking to break free. In each case and with the right investment partner, you can shape the deal structure and shareholding – from majority to minority.
Every private equity deal is different and the type of deal that’s right for you depends on your strategy and objectives. LDC can work with you to structure an investment deal that complements the needs of your business.
Below are the four most common types of private equity deals:
1. Management buyout
If you want to buy a share in the business you run, private equity can help you gain control through a management buyout (MBO). We take a flexible approach, supporting you with a minority or majority investment.
2. Secondary buyout
A secondary buyout provides businesses that have an existing private equity investment with a fresh perspective, helping highlight new opportunities and avenues.
3. Development capital or growth capital
Development capital – also known as growth capital or business growth funding – is a capital injection into your business to further growth without a change in ownership and will often be an investment for a minority shareholding, backing you and your team to deliver future growth with confidence.
4. Corporate carve-out
A corporate carve-out or disposal via private equity can create a deal structure that suits for all parties – working with the management team to buy the business, remove barriers and take the business forward.