We often get asked the question “What makes us different from a Private Equity firm?”
The answer is: A lot.
- Buy-to-Sell vs Buy and Hold
Private equity firms buy to sell. They are often referred to as short-term financial engineers who focus on a 5-7 year investment horizon. They are designed to make money by exiting their investments.
At Clanwilliam Group, we take a more long-term view. This means your staff and customers will always remain our top priorities throughout the acquisition process.
- Sharp Profit Expectations vs Long-term Consistent Growth
Private equity firms are renowned for relentless financial management to quickly enhance performance basics: revenue, operating margins and cash flow.
Whereas, we provide our business leaders with the expertise and resources they need for long-term sustainable growth.
- Change Management v Back Management
Private equity funds look to improve companies through management changes, streamlining operations or expansion. Their eventual goal is to sell the company for a profit.
We prefer to back the entrepreneur and/or management team that have successfully built the business to date.
- Lack of Transparency vs Total Transparency
The private equity market is well known for a lack of transparency. While oversight of the private equity market has increased since the financial crisis of 2008, the market still faces less stringent regulation than more traditional investments.
At Clanwilliam Group, we are fully transparent. All our businesses our fully owned by founders and employees.