Private Equity is the acquisition of a stake in the capital of a company or corporation and consists of either becoming a partner by subscribing to securities that the company issues, or injecting capital into the company’s shareholding. This is a mechanism by which ADI GROUP offers financing solutions to companies that are struggling to obtain credit from financial institutions but have a business plan with convincing profitability expectations.
The objective of Private Equity is to develop the company in order to generate a capital gain at the time of sale, a few years later. This allows the company to access more capital to develop or expand its activity. This option also allows ADI GROUP to have a follow-up respect in the management and good governance of the company in order to ensure the success of its mission.
The acquisition of a stake must be carried out in accordance with 4 important steps:
- evaluation of the company;
- definition of the extent of the equity investment;
- establishment of the organization of the company post-operation;
- completion of the operation and associated formalities.