Q & A
Have a Question?
We often are asked questions about private equity in general, or how deals work in particular.
We know most business owners are typically doing their first deal with us, and it can be a lot to manage (while running your company, no less!).
On this page we tried to answer the “most common” questions we get from business owners; but it’s by no means comprehensive.
If you have any other questions, please reach out to us on the contact page. We are here to answer any and all inquiries.
Why private equity?
Private equity firms allow the owners of privately held businesses to access liquidity and realize a return on their investment—often one where they have “all their eggs in one basket”. The seller may decide to remain involved in the business and retain some of their ownership following the initial transaction, allowing them to take a second “bite at the apple” and experience a more profitable payoff during a subsequent sale. Private equity partners also provide capital to accelerate the growth of a business by investing in infrastructure, internal growth initiatives and strategic add-on acquisitions. Lastly, private equity partners support management teams by bringing additional industry and operational resources to the table. At Century Park, we work closely with an operating team to oversee and improve all operational aspects of our businesses. Our Executive Council members also bring invaluable industry insights and years of senior management experience to our portfolio companies. We think private equity can really help transform companies and take them to the next level—operationally, financially and strategically.
What’s an ideal Century Park investment?
We are a growth-oriented investor specializing in smaller middle market companies that are profitable, exhibit growth opportunities (both internal as well as through add-on acquisitions), and which occupy a defensible niche within their business segment. Many of the companies we invest in are family-owned or involve private owners looking to retire or transition to a more passive role. We always listen to a seller’s objectives in order to craft a solution tailored to meet the needs of all parties involved.
How much is my company worth?
How are deals structured?
How long does it take to close a deal?
How do you work with management?
Who works with me post close?
What is your view on ownership post-close?
We believe in entering transactions as true partners with management. Sellers often decide to retain some of their ownership and remain on the board of directors or assume a more passive managerial or consulting type role post-close. We have also worked with sellers who are looking to completely transition out of the business. In all cases, we use a collaborative approach with management, always adhering to our key tenets of integrity, transparency, alignment and respect. Because we believe in entering into transactions as true partners with management, we allow key team members to participate in a management equity-based incentive program and encourage the senior members of the management team to invest alongside us in transactions. We would encourage you to talk to the managers of past and current portfolio companies to learn what kind of partner we have been.
What’s your typical hold period?
We typically target a 3-5 year hold period for our investments. However, this may vary between companies depending on the amount of time it takes to maximize value and accomplish key objectives set forth in our “Value Creation Blueprint”. We have held investments for close to ten years, too … it is always situation specific.