Pros and Cons for a Growth Company to Take PE Capital

Jason Mironov, Managing Director at TA Associates Partnering with PE firms is a great way to exponentially grow a business and reach new heights. However, there are considerations that must be taken into account, before taking PE capital. Fully understanding them will increase chances of success, in the attempt to unlock the full potential of the business. In this episode of the M&A Science podcast, Jason Mironov, Managing Director at TA Associates, discusses the pros and cons of taking PE capital. Episode Bookmarks 00:00 Intro 05:29 The Lack of Operating Experience 07:03 Pros of taking money from a private equity firm 11:01 Other factors to take money from PE firms 12:49 Cons of taking money from private equity 17:16 Focusing on IRR 22:10 Culture of focusing on numbers 26:54 Working with Unhappy CEO 30:06 Board control 35:33 Expectation for the Board Structure 38:30 Dilution for founders 42:53 How to build and preserve wealth 47:20 Approach on partnership 51:03 Handling Inbound Contacts 56:51 Creating value before partnership starts 01:03:15 Working with the founder 01:05:38 Pushing M&A to portcos 01:08:51 Founder Exit 01:16:01 Timeline of investment 01:20:26 Craziest thing in M&A This episode is sponsored by DealRoom. Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at www.dealroom.net.