The preconditions for private equity consideration
At Markiewicz & Co. Capital Partners we know that a great idea is not of its own the guarantee of business success. We are extremely selective in considering opportunities for private equity funding, and have developed strict criteria that companies must meet before we even engage in preliminary discussions with regard to funding.
- The company’s business model should have the capacity to accommodate and utilise the personal experience and knowledge of Markiewicz & Co. Capital Partners personnel.
- The business model must be based on recognisable and powerful macro trends that provide opportunities for long-term growth.
- The business model should be scalable so that incremental costs of revenue decrease over time.
- The founder or group of founders should have deep knowledge and experience of their industry.
- There needs to be some level of proprietary element that the company owns and can protect.
- The company’s product or service must incorporate an important competitive edge that is also sustainable.
- The cost of entry should be relatively low.
- The path to achieving profitability needs to be clearly defined and feasible.
- The company should demonstrate the potential to grow to a $100M valuation within a five year period.