Finquest successfully launched the first of its CEO Series Breakfast Briefings on the 5th of April 2017. Co-hosted with Clifford Chance, the event brought together 20 CEOs and business owners to discuss and share insights on the challenges CEOs faced when it came to selling or raising capital from a Private Equity fund, Patient Capital, or a Strategic Acquirer.
Forming the panel of experts we had:
Key learnings that were discussed included:
- Knowing what CEOs want to achieve from the investor when it comes to an exit
- Having a plan for bringing in advisors and the types of advisors to engage with
- Reasons why CEOs shouldn't leave value/money on the table - The importance of planning and carrying out re-organisation if needed before bringing in investors or planning an exit
- Getting to know the investor and finding out what their motivations are and whether there is any scope for alignment with your objectives
- Diligence the investor - talk to other companies they have invested in the past to find out how the relationship went
- When bringing in an investor, be prepared to give up some level of "control" or information rights to meet the objectives of the investor
- A private equity may leave the founder / CEO to keep managing the business but may have certain other information or veto rights they may want
- A strategic investor may bring in more governance requirements but may also provide for more strategic growth opportunities.