PwC: Private equity critical opportunity

By Rob Starr, Content Manager, Big4.com

A PwC report released recently reports that of the 1000 businesses with an annual turnover of $10 to $100 million surveyed for the report, 342 said they would be seeking funding for investment in the next 12 months.  The report also says that private business owners who dismiss private equity are missing a critical opportunity to achieve growth and gain competitive advantage.

One in 10 private businesses has gained their knowledge of private equity through firsthand experience. The majority have been exposed to private equity funds second hand through friends, colleagues or media, or they’ve had no exposure at all.

Some confusion arises because of the various private equity funds and their purpose. According to the Australian Venture Capital Association (AVCAL) private business owners should be investigating the option of “growth private equity”.

Among the strongest reservations about private equity held by private business owners is a perceived loss of control .This is a reservation held by four out of 10 businesses surveyed.

PwC Private Clients partner Alan Elliott comments:

“The truth is, under the right circumstance, the right type of private equity can be an accelerator of business growth or a facilitator of ownership change in the case of succession planning.”