By Ameen Ahsan
Many a times we wonder how some businesses grows extra ordinarily. They have an extrordinary team, culture, expand very fast etc.
Hows does that happen? Well there are many factors for it, but one among them is support from a strong private equity. That is private equities give money, expertise and networks to business that helps in its boost. They provide a boost to businesses that have a good Business Model in place and a good leadership.
So what is a private equity? Simply put, its just like a resl estate development investment. Here you identify a potential company, invest into improving its infra, brand image development etc. Then once that in place invest into scaling it. Once that in place use PE networks to get more business inorganically. This increases market valuation of this business and will have many investors desiring to invest in it. Then sell PE shares at a very good price and exit.
Can we do this locally? Yes small investors can form small groups, tie up with business consultants and start investing in local potential businesses.
Do you think this is possible? What challenges do you feel this activity holds? Do you know anyone who has done this successfuly locally? Share with me your view points.
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