Following on from our last blog about working with a private equity-backed business, we thought we would list several questions to ask them during your selection process. The relationship you have with your managed service provider is critical, and so it is imperative to understand where they are as a business, if they have private equity capital what are your key considerations.
Ideas of questions
Here are some questions that clients should ask before working with a private equity-backed managed service business:
- What is the private equity firm’s investment strategy and goals?
- What is the private equity firm’s track record?
- What is the private equity firm’s investment team like?
- What are the private equity firm’s expectations for the relationship?
- What are the terms of the relationship?
- How will the private equity firm measure success?
- What are the exit plans?
It is important to ask these questions to ensure that the client and the private equity firm are aligned on their goals and expectations. By doing so, the client can increase their chances of success working with a private equity-backed managed service business.
Other questions to ask
Here are some additional questions that clients may want to ask:
- What is the private equity firm’s experience in the managed service industry?
- What is the private equity firm’s understanding of the client’s business?
- What is the private equity firm’s commitment to the client’s success?
- What is the private equity firm’s communication style?
- How will the private equity firm handle disagreements?
- How will the private equity firm resolve conflicts?
By asking these questions, the client can better understand the private equity firm’s character and values. This can help the client make an informed decision about whether or not to work with the private equity firm.
It is also important to remember that private equity firms are businesses, and they are looking to make a profit. As such, they may make decisions that are not in the best interests of the client. It is important for the client to be aware of this and to protect their own interests.
By asking the right questions and doing their due diligence, clients can increase their chances of success working with a private equity-backed managed service business.