Many business successes have been fueled by investments from private equity firms. Michael Eisenga explains how involved these companies are.
UNITED STATES, November 4, 2021 /EINPresswire.com/ – There are countless stories of private equity firms turning relatively small and unknown companies into powerful success stories. Backed by large investments, the drive to succeed, and industry relationships, private equity firms can inject energy and cash into businesses to help them grow at rates they probably couldn’t. accomplish by themselves.
Due to well-known success stories, securing investments from private equity firms is a goal for many small business owners. However, it is not always worth it.
Real estate investor Mike Eisenga warns that private equity firms are not always very involved in their investments. In many cases, these companies focus on raising capital, sourcing products, reducing costs, building business relationships, and then an exit strategy.
While the private equity firm may have people supporting the companies it invests in, that is not its strength.
Not all private equity investments are successful. Contrary to popular belief, most of their investments do not pay off and have powerful success stories.
To compensate for this high failure rate, private equity firms must simultaneously make multiple high-stakes investments. At first, they divide their resources evenly across all of their assets – until they see which ones turn out to have the greatest potential.
Second, private equity firms often shift their resources to these successful investments, leaving others to fend for themselves. In many cases, this strategy can cause some businesses to fail.
However, not all private equity firms work this way. Michael Eisenga points out that small private equity firms focused on building local communities can do a lot of good.
In addition to the cash investment they can inject into a business, they can play a direct role in improving operations and reducing costs. The leaders of these companies can be invaluable resources because they have years of experience in optimizing their businesses and doing it for others.
By helping with financial, marketing, management and product strategy, these private equity firms can accelerate the growth of their business investments while creating long-term, sustainable value. Ultimately, if the right relationship is made, private equity firms can help build sustainable businesses.
This dichotomy between private equity firms accentuates the fact that it is vitally important that business owners find the right investment partnership. They need to analyze their current situation, the direction they want to take with their business, and the support and direction they would want from a private equity firm.
Then by looking at the business, the business owner can find the right person who will help them achieve their goals the way they want.
About Michael Eisenga
Mike Eisenga is a successful commercial real estate investor with a banking and finance background and the former mayor of Columbus. As President of American Lending Solutions, a mortgage company (which he founded and operated from 2000 to 2018), and First American Properties, he has a proven track record of building and operating businesses prosperous. Mr. Eisenga is also dedicated to property development and construction, primarily serving small local communities. Especially in the retirement home sector.