Pros and Cons of Private Equity
In the most recent edition of Multi-Unit Franchisee Magazine several franchisees are interviewed about their experiences regarding their experiences with private investors. We’ve summarized the article below for you, but be sure to follow the link to check out the full story!
Pros: For most franchisees the pros of working with private investors far outweigh the cons. Experience is the one of the top reasons that many turn to private investors, knowing that these companies aren’t jumping into the franchise relationship for the first time. They have knowledge that many first-time, or even second or third-time franchisees might not have and they can help their investees in that way.
Money is also a reason many turn to private investors. The opportunity to grow faster isn’t always available without the help of a private investor.
As for the downsides of working with investors in this way, some franchisees do cite the fact that you give up some control of your business. However, for most of them the opportunity to learn from their investors and grow is invaluable.
Finally, many say that it is important to find an investor whose values are aligned with yours. By doing this you can ensure that your relationship with your investors is one that can stand up to our fluctuating industry. Ready to find the right business? View all our current for sale business listings.