Private Capital/Equity Trends for the Small to Medium Size Businesses

The economic prosperity of the past few years has allowed us to enjoy a supply of capital that is much greater than the demand for capital. This imbalance is a positive factor for the best business models.

Simply stated, statistics tell us that there is $1.80 of capital available (supply) for every dollar of capital required (demand) for “worthy” emerging businesses.

In Q1 2019 Pitchbook summarized 2018 trends and activities by Private Equity and Private Capital, indicated the following: 2018 marked the first time in the past 10 years that deal value in the middle market reached a global average of $100 billion quarterly, leading to an overall increase in deal value of 14.8% over the previous year and deal count in 2018 also reached a decade high, rising 15.1% over 2017.

With an excess supply of capital are you choosing the right capital partner who can be “Useful Capital” to the growth and success of the business?

As we approach nearly two decades of experience in advising entrepreneurs, Founders, CEO Entrepreneurs, and their Boards, as well as the Institutional Investment community, Ephor has come to realize that the development of the skill sets and augmentation of the required skills at the Founder and Leader level is critically important.

Additionally, it is well known that the institutional investment community has come to the same realization, that technology-enabled, asset-light service businesses are perform-oriented businesses; thus, strategic leadership and operational effective management teams are a prerequisite for exceptional investment returns.

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