Private equity sometimes gets a bad rap, but it’s not always warranted. Like any investment firm, it all comes down to the people behind the company, and the good news is, many private equity firms really do care about the business at hand.
Sequoya Borgman, Founder & Managing Director of Borgman Capital, has made it his sole prerogative to keep the best interest of any business and its owner top of mind. Today, we’ll chat with this entrepreneurial-minded owner about what private equity companies do.
Having launched Borgman Capital in 2017, it may seem Sequoya only has a few years of experience under his belt — but he actually comes from a public accounting and CPA background with many years of experience at a large firm.
When his career came to a turning point, he thought it was time to take on more risk of his own, entering the investment sector with a business of his own. It’s that kind of entrepreneurial spirit that allows him to see the whole picture and empathize with the owners of businesses he’s looking to acquire.
Borgman Capital follows a model of finding quality businesses to invest in first, letting the investment money follow. Some private equity firms do the opposite, but Sequoya notes that it’s tougher to find good businesses. So, they place that upfront emphasis where it really matters.
On this episode, we’ll gain tons of insight on how the process actually works, and the many different ways deals can be structured. Sometimes, owners want to stay on and operate the business day-to-day. Other times, they’re happy to relinquish control and sell outright.
Ultimately, Sequoya says his firm does what’s best for the business at hand, and there’s no catch-all answer. Each business is unique, and more often than not, owner involvement is best. Sometimes, the introduction of a more formal board that provides guidance is all a business really needs to thrive and hit that next level.
Sequoya also speaks on different strategies that are commonly used by private equity companies, such as rollups and add-ons, and when each makes sense. For some businesses, such as regional telecommunications companies, it makes sense for a larger investment firm to come in, add infrastructure, and combine smaller businesses into one larger regional player.
In other cases, such as a food company the firm recently worked with, those add-ons and rollup strategies wouldn’t make much sense — all that business really needed to grow was an increase in volume. At the end of the day, these decisions are always business-centric, and Sequoya is proud to deliver an experience through his firm that leaves the business owner feeling like they did the right thing for them and their business.
If you’re ready to learn, tune into this week’s episode. In addition to what’s above, we’ll cover how private equity investments help all kinds of small businesses, where the money comes from, what the process is like, and how many owners are able to grow their companies when they accept a bit of expert advice. You’ll even catch a few tips from Sequoya himself!
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