Myth: A Private Equity Firm Will Change Everything That You’ve Done to Increase Your Company’s Value

Myth: A Private Equity Firm Will Change Everything That You’ve Done to Increase Your Company’s Value

 

We’re Busting Myths About Private Equity 

 

Private Equity MythbustingBusiness owners pour their blood, sweat and tears into increasing the value of their companies. You handpicked original management members who went on to hire the best employees. Your team adds value to your company’s worth. You carefully cultivated a company culture that reflects your business values, which has gained trust and respect among your community and industry. You selected your company’s location for a good reason. Your customers are loyal and do business with you because you provide a service or product that best fits their needs.

All these aspects put your company in a good position to attract private equity. But many would have you believe that bringing in a private equity firm means everything you’ve set in place, that increases your company’s worth, is going to change.

And, we’ve all heard stories and seen movies about private equity firms taking over companies, firing their employees, completely changing the culture, cutting costs, leveraging the company to the hilt and moving away from the towns where they’re based.

Some of those stories are true, but that’s not how Great Range Capital does things.

Great Range Capital is interested in buying your business BECAUSE of your employees, company culture, customers, Midwest location, and excellent product or service, not IN SPITE of them. Why would we change the very things that have increased your company’s value in the first place?

“I had two difficult decisions to make. The first was deciding to partner with a private equity firm to continue our company’s growth and protect employees should something happen to me. The second was deciding which private equity firm would be the best partner,” explains Cody Wray, former owner of Fairbank Equipment, Inc., a GRC portfolio company.

Business owners and management teams are seeking more than just an investor. We get that! And, we can be a valued partner because we share your Midwestern presence, culture and values…all while bringing a best-in-class approach to private equity.

Cody says, “Ultimately, we chose Great Range Capital. That decision has been affirmed time and time again over the past five years as they have provided the resources for us to grow without being intrusive. Initially, I agreed to stay on for two more years; however, five years later I am still at Fairbank and enjoy working with everyone at Great Range Capital.”

To be fair, some aspects of the company may change with a private equity investor. For instance, at GRC, we like to establish strategic boards of directors that can assist the company in delivering on its growth plans. Investments may be made in employee development, R&D, new product development, acquisitions, financial reporting or other areas that can benefit the company.

You need only look at Great Range Capital’s portfolio to see that each company has their own strategies, leadership teams and investment horizons. But, they share many of the qualities that draw us to investing in Midwest-based businesses: they were built by hard-working, successful entrepreneurs who care about their employees and their company’s culture. They trust GRC to respect (not wreck) their efforts to increase their business’s worth.