Marketing for private equity investment can be a challenging process for businesses who must balance competing priorities ranging from their day-to-day operations and appeasing existing stakeholders, to preparing for investment, and juggling discussions with potential investors.
Although private equity investors actively seek new investment opportunities, businesses also need to be strategic in their approach to attract the right investors and secure the best deal. A well-marketed business will generate awareness and competitive tension, and in turn it may drive their deal value.
Here are some ways that businesses can market themselves for private equity investment.
Develop a strong business plan and detailed equity story
Before marketing to potential investors, businesses should develop a strong business plan and detailed equity story. This plan should outline the business’s unique value proposition, its competitive advantage, and its growth potential. It should also highlight the specific areas where the investment will be used and how it will drive value creation.
An effective business plan can help businesses differentiate themselves from their competitors and attract the interest of potential investors. An equity story can also help investors understand the potential value and growth opportunities of the business, often leading to more favourable investment terms. The equity story will include an explanation of the opportunities for growth, the strategies to facilitate success and finally, who the potential buyers of the business may be when it comes to realising business gains.
Create a compelling pitch deck
A pitch deck is a visual presentation that outlines the key points of the business plan. It should be clear, concise, and compelling, and should provide a snapshot of the business and its potential for growth.
The pitch deck should include key financial metrics, such as revenue, profitability, and projected growth, as well as information about the business’s management team, market trends, and competition. It should also highlight the specific areas where the investment will be used and the expected returns for investors.
Leverage digital channels
Businesses can leverage a variety of online channels to market themselves for private equity investment. These channels include social media, email marketing and online advertising.
Social media platforms such as LinkedIn can be effective for reaching potential investors and building relationships with them. Email marketing can be used to keep investors informed about the business’s progress and growth potential. Online advertising can be used to reach a wider audience and generate interest in the business or even paid media features.
Network with industry peers
Networking with industry peers and attending industry events can be a powerful way to market a business for private equity investment. By building relationships with other industry players, businesses can gain access to potential investors and build credibility in the industry.
Attending industry events and speaking on industry panels can also help businesses showcase their expertise and thought leadership, which can help them stand out from their competitors.
Work with professional advisers
Working with professional advisers such as investment bankers, lawyers, and professional service firms can be an effective way to market a business for private equity investment. These advisers can help businesses prepare their pitch deck, develop a strong investment thesis and identify potential investors.
Advisers can also provide guidance on valuation, due diligence, and negotiation of investment terms, which can help businesses secure the best deal and protect their interests during the investment process.
How BDO helps with private equity marketing
The private equity marketing services we provide include:
- Supporting the build and rehearsing of a credible management presentation
- Leading buyer interactions
- Managing investor enquiries and multiple advisers
- Identifying and dealing with difficult issues and questions
- Understanding and guiding valuations to drive meaningful offers.
For more information about the other ways we support businesses seeking private equity investment, explore our private equity for businesses services.
Key takeaways
Marketing for private equity investment is a strategic and multi-faceted process for high growth businesses. By developing a strong business plan and equity story, creating a compelling pitch deck, leveraging digital channels, networking with industry peers and working with professional advisers, businesses can attract the right investors and secure the best deal.
Contact us
If you are interested in how BDO can help you with your Private Equity needs, please get in touch with our Private Equity team.