Stimulating Growth through Private Equity
The term Private equity evokes all kinds of reactions. Private equity firms have reputations ranging from aggressively good to aggressively bad, depending on which chair you sit in, but they can increase a company’s value. Their ability to achieve high returns is attributed to incentives for private equity portfolio managers and operating managers, the aggressive use of debt, and a determined focus on cash flow. Different from Venture Capital, private equity focuses on buying and selling companies after a period of performance improvement or growth. Very often, this can occur in Mergers and acquisitions, which are the acts of consolidating companies or assets, intending to stimulate growth, gaining competitive advantages, increasing market share, or influencing supply chains. But in general, private equity keeps the market dynamic. As a result, private equity and other financial institutes play a critical role in forging a frontier of growth. In this episode, we discuss private equity’s position and the factors that can make these transactions successful.
Ted Clark, is a businessman, entrepreneur, and investor with over 40 years of experience as a senior executive in both public and private equity-owned specialty chemicals companies. His new book is “Buy and Build CEO: Leveraging Private Equity to Build a Winning Global Business”. and available on Amazon. Starting as a shipping clerk, he rose through the ranks to become President & CEO of Products Research & Chemical Corporation (PRC), a global leader in aircraft and construction sealants and coatings. He is also an investor and has served as a director of four private-equity-backed specialty chemical companies. Today, Ted a partner at Iron Path Capital a private equity firm and focuses on specialty industrial investments partnering with business managers on acquisitions and buy and build growth strategies using private equity capital.