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What does PE Firm Looks in a Business?



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About the Blog : An Outline

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Investment Banking Nerd is a Knowledge Repository. Hi,  My name is Ishika Mishra and I'm a blogger by hobby. My journey of blogging started with an amazing theory, my English subject teacher always scolded me for my spelling and verbs usage mistakes, you will very easily find the same in this write up also.  To tell you about my current blog "Investment Banking Nerd", it's an amazing creation that I love to do everyday. This blog helps many people from a ' Student ' who wants to enter Investment Banking to those working in Investment Banking industry and wants to research about Investors and documentations tools and it's importance.  Investment Banking Nerd blog is a creation of Knowledge base and a Portfolio for me !! Isn't it's amazing the you are working anywhere in this world and you just type in on the net your very own website name and everything you know & had made repository of comes off in a second in front of your eyes. This is the i...
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What does PE Firm Looks in a Business

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What does a Private Equity Firm sees for Deal to a Great Businesses ? 1. Large and Ideally Growing Target Addressable Markets (TAMs): Even a great business can be a bad investment if its TAM is rapidly shrinking. Conversely, a growing TAM allows a great company to grow exponentially, like an electric battery company benefiting from the expanding electric vehicle market. Investors also assess how well a company can serve this market, considering product distribution abilities and go-to-market strategies. 2. Strong Competitive Moat: A competitive moat is a non-negotiable feature for PE investments. It refers to a company's unique advantages, such as brand strength, proprietary technology, or cost efficiency, that protect it from competitors and ensure long-term profitability. Without a strong moat, a business risks being overtaken, as exemplified by Blackberry's decline despite initial market share, due to its inability to protect itself from iPhone and Android competitors. 3. St...
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