The Bliss Financial Group

Private equity succession planning is focused on maintaining a company’s talent and ensuring a smooth transition should existing leadership leave. While some believe the process simply involves replacing the C-suite, we believe it is a multilevel effort where talent is developed and groomed. Roadmap Succession Planning At All Levels Is The Key To Success.

Private equity is sometimes confused with venture capital because both refer to firms that invest in companies and exit by selling their investments in equity financing, for example, by holding initial public offerings (IPOs). However, there are significant differences. Private equity is capital invested in a company or other entity that is not publicly listed or traded.

Clearly, buying to sell can’t be an all-purpose strategy for public companies to adopt. However, as private equity firms have shown, the strategy is ideally suited when, in order to realize a onetime, short- to medium-term value-creation opportunity, buyers must take outright ownership and control. Such an opportunity most often arises when a business hasn’t been aggressively managed and so is underperforming.

Private equity gets a big win with U.S. nod to tap 401(k) plans. The Labor Department issued guidance effectively allowing 401(k) plans to invest in buyout firms. The agency said the move will bolster investment options for consumers and let them access an asset class that can provide better earnings than stocks and bonds.