“Entrepreneurs who successfully navigate the complex process and emotional whirlwind associated with private equity investment are the ones who take the time to evaluate all of the pros and cons, and ultimately make a pragmatically informed decision with their eyes wide open. Rather than denying the mental and emotional issues that come with a decision of this magnitude, they embrace all of its ramifications and choose to frame the decision — the “win” — on their terms.”
Who said it: Jeffrey Kadlic co-founder and managing partner of Evolution Capital Partners
In Context: In an article written by Kadlic, entrepreneurs are given some advice on the benefits of accepting private equity investment. The PE expert suggests that owning a small business is a white-knuckled affair, where mission-critical events can threaten a company’s very survival on a daily basis. Aside from launching the company and terminating the company, perhaps the next most important decision for a business owner is agreeing to accept outside investment from a private equity firm, the article posits. It is about giving up some control, but also about gaining support to growth the company and perhaps even gain more free time. The article is unusual in that it has a strong emotional component and psychological perspective for a transaction that is normally described in terms of material and financial pros and cons.
Where we found it: Crains Cleveland