Why options matter when funding for growth
Entrepreneurs need to weigh the benefits of private equity vs. going public.
Funding decisions can be fraught for entrepreneurs. For those considering private equity, they need to decide what’s important for the longer term, make sure everyone is aligned to the same goal and ask lots of questions — due diligence is a two-way street. “We brought in a private equity investor because we needed big muscles to take on the world,” says Samu Hällfors, CEO of Framery Oy.
Alternatively, with high stock valuations and low interest rates likely to remain for the foreseeable future, many entrepreneurs plan to fund their growth by going public. The IPO process can help founders professionalize their business because of the governance required.
“We went public [in 2006] and my family owns a majority stake in the business, so we stayed in control,” says Emil Tedeschi, President and CEO of Atlantic Grupa.