What do you do when a private equity fund comes knocking on your door? Ask you out for a dinner to talk about your business?
It does not happen very often in Bulgaria. Only a few global and regional PE funds are actively looking into opportunities. So, yeah, go meet them. Talk. They would have many questions about your business, your products and services, the markets, clients, you, your management, your team, your strategy, execution, growth plan, financials, revenue, profit and (free) cash flow.
Would you feel comfortable talking about that? In what detail? What information you should not share without adequate legal protection in place – a signed NDA, a regulated data room with managed access, disclosure arrangements etc.?
First, you may want to clarify your own goals and your desired outcome of such a meeting/dinner out. Do you want to consider, at this stage or later, an exit or alternative growth paths involving a PE funding, be it some form of equity or credit? Is the timing right? If uncertain, at least you would learn, first hand, what feasible options you might currently have?
Second, prepare, research and read about the fund and its representatives you will meet, their track record and experience, in Bulgaria, in the region, in your industry.
Third, you can call us and chat confidentially. At some point you will need an adviser to help you maximize the value of such an opportunity. We help clients close deals. We have acted on all sides in numerous cross border PE transactions, know the play and the players.
By Pavel Hristov and Dragomir Stefanov, Partners, Hristov & Partners