The 5 Best Private Equity Strategies You Really Need To Know

7 min read

Private Equity Strategies

What would say if I suggested that you master private equity strategies to run your business?

The rise of private equity firms and their massive success is undeniable. Success is not an accident and leaves clues. Private equity firms buy businesses that they later sell for a considerable profit.

You may be thinking that you’re not as “sophisticated” or as “smart” as a private equity professional. Think again. You’ve created a successful business that changes lives.

Who am I, and how do I know?

I was the kid who started his business right out of school with no money, experience, or team. I failed forward all day, every day. It was my grit and passion that kept me in the game long enough to experience success.

Success brought an unsolicited 7-figure. My gut instinct told me something wasn’t right. I said “no” to the 7-figure offer and “yes” to mastering the art of the sale.

Two years later, I said “yes” to a 9-figure offer. And in case you’re wondering, my buyer was a private equity group.

I created a 9-step road map of preparation that gave me the certainty to capture maximum value. Today, I pay-it-forward and help business owners prepare through a 90-day program.

The 90-day program, called the Deep Wealth Experience, teaches you the 9-step road map. Along the way, you remove mistakes and have the certainty to capture maximum value.

For your exit or liquidity event, your mission is maximizing enterprise value.

There are five private equity strategies that increase your EBITDA and enterprise value.

Do you know what the five private equity strategies are and how to leverage them?

Keep reading.

A Proven And Powerful Business Model Unlocks Both EBITDA And Enterprise Value

Businesses fail because they lack a proven and powerful business model – Jeffrey Feldberg

EBITDA Private Equity Strategies

Private equity strategies include finding businesses with a proven and powerful business model. The business model has stood the test of time and drives high levels of EBITDA.

Read “Why Your Business Models Sucks And What You Need To Do About It.”

In my 9-step roadmap, step two is “X-Factors That Insanely Increase Enterprise Value.” At the heart of private equity strategies are X-Factors.

One such X-Factor is a proven and powerful business model that has three components:

  1. Recurring revenue
  2. Long-term contracts
  3. Revenue sharing

With most business models, you don’t know when the customer will buy again from you, if at all. At the same time, cash flow and revenues are inconsistent.

Business models with recurring revenue include music services and video streaming services.

Changing your business model to have customers buy from you at preset times creates a win-win. Customers win because they have a predictable spending pattern with you. You win because you have a steady stream of income.

With a steady stream of income, you now have reliable forecasts around growth and cash flow.

Long-term contracts provide predictability and security for your business. When you’re world-class at solving a painful problem, clients agree to work with you over the long term.

The holy grail of a business model is profit-sharing. Easier said than done. Your mission is to show clients why they’re better off to share revenue with you.

In my eLearning company, we created a new service that catapulted profits for clients. Our clients realized they couldn’t achieve the same results. At the same time, we removed the risk for clients to make it an easy decision.

With your business model optimized, do you know the other private equity strategies?

Keep reading.

Private Equity Strategies Include Having Tremendous Growth Potential

If we’re growing, we’re always going to be out of our comfort zone – John C. Maxwell

Mastering private equity strategies for your business has you focus on growth.

The 9-step roadmap that we offer at Deep Wealth has you prepare your business for a liquidity event. Preparation is what increases your enterprise value.

The 9-step roadmap helps you create a blueprint to optimize the value of your business.

Keep a thriving and profitable business forever or sell it tomorrow. You choose and either choice is a great one.

Read “Why You Need To Create Market Disruption To Lead, Succeed, And Prosper.”

At the heart of our system is helping you find ways to grow your business. Step 2, X-Factors, helps you find your blue ocean to increase EBITDA.

Step 8 has you find the hidden Rembrandts in the attic. Your business is world-class in at least one area but you don’t know it. Communicating your Rembrandts demonstrates why you’re world-class in solving a painful problem.

Combine your X-Factors with your Rembrandts to create a market disruption. In the process you create high levels of growth for your business. Your enterprise value increases from a higher EBITDA.

Growth potential is a key component for private equity strategies. High growth is the gateway to a prosperous future for your business.

Most business owners get caught up in the day-to-day of the business. Growth is an afterthought for the business owner, but not the private equity firm.

Mastering private equity strategies have you do two things. First, you enjoy the benefits that growth brings today. Second, you ensure you have a bright and prosperous future tomorrow.

When it comes to private equity strategies, do you know the one strategy that is a game-changer?

Keep reading.

At The Heart Of Private Equity Strategies Is A Talented And Proven Management Team

Great teamwork is the only way we create the breakthroughs that define our careers – Pat Riley

Management Team Private Equity Strategies

Do you know the fastest way to have a private equity firm run for the hills when looking at your business?

You run the business instead of having a talented and proven management team.

Read “Why You’ll Be Happier And Richer When Your Company Runs Without You.”

Most business owners believe that they are the business and the business is them.

Don’t make this mistake.

At the heart of private equity, strategies is a strong management team that has a track record of success.

For your business to succeed you need a management team to work in the business so you can work on the business.

It’s a strong management team that enables private equity strategies to work.

When your management teams run the business, two things happen. First, you get your time back. Second, with more time you find new painful problems that you’re passionate to solve. Value creation occurs in the process.

A strong management team ensures accountability takes place in the business. From your entry-level employees to the CEO, everyone is accountable.

Successful private equity firms ensure that everyone is accountable to each other. Accountability optimizes how you spend time and money. With accountability comes growth, longevity, and a higher EBITDA.

A strong management team also considers succession. Legendary private equity firms have a roster of internal successors for the CEO. Preparation replaces chance.

The cost to find, hire, and build a strong management team is a rounding error when it comes to your liquidity event.

Do you know what you must do for your culture to optimize private equity strategies?

Keep reading.

Why A Culture Of Accountability Is A Key Ingredient For Increasing Enterprise Value

Accountability is the glue that ties commitment to the result – Bob Proctor

Private equity strategies include a rich culture based on accountability.

Money buys many things, but it does not buy company culture.

Read “Company Culture: Why You Need It To Achieve Massive Success.”

Your competition can deploy its capital to copy your technology and marketing. What your competition cannot do is buy your culture.

Your company culture is as unique as your fingerprint. In the 9-step roadmap, step eight focuses on Rembrandts, and step two focuses on X-Factors.

A rich company culture built on accountability is both a Rembrandt and an X-Factor.

Many titans of business who are no longer around had their demise because of arrogance. Arrogance is a quick and effective way to put you out of business.

Private equity strategies rely on a culture of accountability to prevent arrogance. A culture of accountability ensures that everyone and everything is transparent.

A culture of accountability has you deploy regular performance reviews. In an environment of trust, team members feel safe to share what’s working and isn’t working.

From the entry-level employees to the CEO, everything is up for discussion. Performance reviews are meaningful and provide motivation for everyone to exceed goals.

A culture of accountability ensures employee reviews take place every six months. Employees feel safe and protected to share unbiased feedback. Political correctness doesn’t exist. Everyone moves in unison to become better.

Success leaves clues. Successful private equity firms leverage the power of a culture of accountability. So should you.

A culture of accountability catapults both EBITDA and enterprise value. Customers enjoy working with a company that exceeds expectations and gets things done. Everyone wins.

Speaking of winning, why do private equity strategies include strong financial systems?

Keep reading.

Why Private Equity Strategies Leverage A Foundation Of Strong Financial Systems

Share results (financial and key metrics) with the company every month –  Sam Altman

Financial Systems Private Equity Strategies

Private equity strategies include strong financial systems to catapult EBITDA and enterprise value.

Successful private equity firms share financial metrics for everyone in the business. There are no secrets or guessing for how the business is doing.

Read “5 Costly Liquidity Event Mistakes That Will Make You Cry.”

To share financial metrics on a regular basis requires strong financial systems.

Most business owners make the fatal mistake of reviewing financial metrics yearly. Accountants prepare financial statements which are often ignored or overlooked.

Rumors and gossip start with employees who overestimate the company’s profitability. An unspoken hostility forms. Employees believe that you ride off into the sunset with untold millions each year.

Sharing financial metrics with employees throughout the year prevents gossip. At the same time, employees armed with financial metrics have knowledge. Knowledge is power.

With open book financial, give employees the power to improve business performance. From the entry-level employee to the CEO, the business benefits every day.

People, including your employees, enjoy being part of a winning team. Financial metrics give employees something to rally around and improve.

Successful private equity firms enable employees to own shares in the company. Now employees have a direct stake in the failure or success of the business.

With open books and skin in the game, watch your employees take the business to new levels of success. Pride of ownership helps increase EBITDA and enterprise value.

Private equity strategies include strong financial systems because it works. Make the playbook for private equity firms your playbook.

When you do, watch your business flourish today and in the days ahead.

Conclusion

Success is not an accident, and instead, is a result of specific actions that get results.

Successful private equity firms have figured on how to dominate and win, and so should you.

There are five private equity strategies that create massive success. It is these same strategies that increase EBITDA and enterprise value.

How do I know?

I said “no” to a 7-figure offer and mastered the art and science of a liquidity event. Two years later, I said “yes” to a 9-figure offer.  My journey had me create a 9-step road map of preparation.  The right preparation helps you create a blueprint to optimize business value.

Today, my mission is to help business owners tilt the playing field to their advantage. The 90-day Deep Wealth Experience, grounded in the 9-step road map, is how I help business owners.

When you’re prepared, you have the certainty that you’ll capture the maximum value. When you know, instead of believe, you do the right thing at the right time.

Let my in-the-trenches experience and heavy lifting work for your advantage. Take the time now to review the five strategies to help you achieve a successful liquidity event.

Deploying private equity strategies has you operate like successful private equity firms. The five private equity strategies I revealed helped take my company from “zero” to “hero.”

The best time to prepare was years ago. The next best time is today. Whether your liquidity event is in one year or ten years, the time to prepare is today.

Here’s to you and your success.

Your Raving Fan,

 

Jeffrey Feldberg

 

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Don't Sell Your Company, Until You Discover The Fatal Mistakes Made by Most Sellers That You Must Avoid at All Costs.

SIGN UP AND RECEIVE:

* Free Exit eBook
* Proven exit strategies
*  How I achieve my 9-figur exit
* Your Midweek Wisdom Email
* Little known success principles

GET ACCESS
I hate spam as much as you.  Your email is never shared.
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