Capital Sourcing
Equity Raise
Whether a company is growing faster than its cash flow will support, making acquisitions, or buying out one of the owners, raising equity is often necessary to meet the goals of the management team. We'll help you navigate the capital sourcing process and negotiate the best possible terms while helping you pick the right partner.
What You Should Know About Equity Raising
$600B
the amount of capital private equity firms invested in middle-market companies in 2023.
60%
of middle-market firms that secured equity financing used it primarily for expansion purposes.
6-9
Months
the number of months it takes to complete an equity financing transaction.
Explore All Financing Options
Raising Funds Through the Sale of Equity
While there are many different options for raising equity financing, most of which are dependent on the life cycle stage of the company, Waypoint Private Capital focuses only on helping our clients raise institutional growth and buyout capital, primarily from private equity firms.
Accepting an investment from a private equity (PE) firm can be a transformative experience for a business owner, offering both significant advantages and potential challenges. Here are the pros and cons:
Equity Raise Pros
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Access to Capital: PE firms provide substantial capital which can be used for expansion, acquisitions, or other strategic initiatives.
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Expertise and Guidance: PE firms bring industry expertise, strategic insight, and a network of contacts that can help scale the business effectively.
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Operational Improvements: PE investors often implement best practices in operations, finance, and governance, driving efficiency and profitability.
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Enhanced Credibility: Being backed by a reputable PE firm can enhance the company’s credibility with customers, suppliers, and lenders.
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Growth Acceleration: With the added resources and strategic direction, businesses can accelerate their growth plans more rapidly than they could independently.
Equity Raise Cons
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Loss of Control: PE investments often come with significant influence over business decisions, potentially reducing the owner's control over the company.
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Pressure to Perform: PE firms typically have high expectations for performance and growth which can create pressure to meet ambitious targets.
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Exit Strategy: PE firms usually have a defined exit timeline of three to five years and will aggressively push to increase the value of the business in that timeframe. But this isn’t really a con, because the business owner will share in the benefits of that value enhancement.
Overall Equity Raise Experience
For a business owner, accepting PE investment often means embarking on a period of rapid growth and transformation. The influx of capital and expertise can drive significant business improvements and market expansion. However, it also requires adaptability, as the owner must balance their vision with the strategic goals of the PE firm.
Understanding the terms of the investment, including the degree of control and the expected timeline for returns, is crucial for navigating this partnership successfully.
We Help You Identify and Execute
Equity Raising Solutions
Equity Raise Process
Securing capital from a private equity firm can be transformative for your business, but it requires meticulous preparation and a deep understanding of the process. Before approaching potential investors, it's crucial to have a clear growth strategy, robust financial projections, and a compelling narrative about your company, its market position, and growth potential.
Private equity firms scrutinize every aspect of your business, from your management team to your operational efficiency. Being well-prepared not only increases your chances of success but also positions you to negotiate better terms and find the right partner for your long-term goals. Proper preparation can mean the difference between a successful capital raise that propels your business forward and a missed opportunity. The team at Waypoint Private Capital can help with every step of the equity capital raising process.
Below is an overview of our 5-Step Equity Raise Process:
$1B+
Cumulative Deal
Value
425+
Years of Team
Experience
100+
Client Transactions
15+
Years In
Business
Recent Equity Raise Transactions
