Eight tips to attract private equity investment

What do investors want? Experts at private equity firm, Jacana Partners, reveal how to make your company appealing to investors.

Are you a team leader? - Stephen Dawson, chairman and investment director, East Africa

Do not hire a personnel manager even if your business employs large numbers of people. Selecting, motivating, managing, and communicating with your core team is one of the most important things that you do and cannot be passed over to another manager.

Do you have an in-house finance manager?

You may think that financial management capability is something you can hire as needed, but as your business grows you need to have this resource in-house. These skills are very different from the entrepreneurs’ and you may need help in choosing the right person for this role.

Are you running too fast?

Beware of over-expansion and particularly moving into new fields before you have really proven the model in your core area; this applies to product or service range expansion, but especially to geographic expansion.

___________________________________________________________________________

Do you know your strengths? - Robert Jenkins, Investment Director, East Africa

Look for patient value-added capital that will round out your weaknesses. We expect you to have the vision and the domain expertise to get started. We can then build up the execution team together.

___________________________________________________________________________

Prudence always prospers - Kenneth Ibbett, Investment Director, West Africa

Don’t borrow money just because you can – spend only on what is critical to improve your bottom line. Frugality forces discipline and focus.

Think entrepreneur

We like entrepreneurs, so think outside the box, challenge convention, outwit the competition. Be savvy when it comes to strategic partnerships with investors and other partners. A real entrepreneur realises it is better to seize the opportunity with a good partner now, rather than haggle over terms for six months and be left empty handed.

Expansion: Have you considered all your options - Ezra Musoke, Partner, East Africa

As you expand, look at the case for equity finance as an alternative to bank finance. A private equity firm can be a valuable partner in your business and strengthening your equity base means you can also prudently take on more debt.

____________________________________________________________________________

The courage to change direction - Barnaby Terry, Investment Director, West Africa

Once you raise money, don’t be afraid to deviate from the Plan. Circumstances change, more market information emerges, so don’t be afraid to rework the plan with your investors and team as you go along.

Jacana Partners is a pan-African private equity company that invests in entrepreneurs, builds successful small-to-medium sized enterprises and delivers sustainable financial and social returns.