Is Private Equity Right For Your Company?

If you have a revenue generating company that’s been operating for a couple of years, and you’re interested in taking it through to the next stage of growth – whether it’s some cash injection or a complete overhaul – then consider looking into partnering with a private equity investor.

First of all, what is ‘private equity’? In short, it’s finance provided by investors in exchange for an equity stake in the company. Private equity (or PE for short) is generally associated with mature companies with growth potential that need regeneration. A wide range of industry sectors benefit from private equity funding such as technology, industrial, healthcare, banking and finance and more.

People are often confused about the difference between private equity and venture capital. Venture capital is actually a form of private equity but the main difference is that it tends to fund younger companies such as start-ups and emerging companies.

Now that you know a little bit more about private equity, don’t stop there – there’s plenty of resources out there that will teach you all you need to know about private equity funding. This is only the beginning.

Once you’ve read up a bit more about private equity and how it works, let’s take you through what you would need to do to acquire this type of funding for your company. The first thing you’ll need to do to start your private equity journey is to interview potential investors.

We understand how complex it is to search for the right private equity investor, so we’ve listed some key questions you should ask when trying to find the right investor to partner with for the long-term:

How much control will management and shareholders have?
Will there be follow-on investments? If so, what are the terms?
How experienced are the private equity firm in your sector?
Who are the main points of contact?
What will happen if either party wants to exit the deal?
What costs will the business be responsible for?
What is the investment horizon?
What does capital structure look like?
If you’d like more information for any of the questions above, you can read our full article on 10 Questions to ask a private equity investor.

As well as having these questions, we recommend that there is always a good lawyer present to negotiate on your behalf. You will want to find a law firm with experience not only in private equity investment, but they must also have the commercial experience to be able to put themselves in the position of the management or founder. Choose your lawyers with care and look out for independent references.

Google’S Brilliant Business Strategy On ‘Toxic’ Hyperlink

There is something extraordinary taking place. Google’s war on spam sites is tipping the online world upside down and now threatens that most fundamental element of the world wide web: the hyperlink.

The communications lines are the spider’s silk but it’s the links that make the structure of the web. But because of Google’s battle with spammers, the hyperlink could disappear in its current form, and become a commercial product that’s bought and sold, instead of earned fair and square.

Let me explain:

When I ran into Matt Cutts, head of Google’s web spam team, at the company’s most recent Christmas party, he said that Google would start paying more attention to sites that had lots of links from low quality content sites. Because that would be a signal that there was search engine optimization (SEO) at work, which means those links were likely paid for, in a bid to deceive Google.

It made sense since Google’s Panda algorithm, (a major rewrite of its core algorithm launched in early 2011) now had a measure of the “quality” of each page in its index.

Prior to this, Google was measuring the number of links coming into a site, and how many links were going to the referring sites. A link coming from a high ranked site was valued by Google as an important signal and it would raise the “pagerank” of a web site.

SEO’s two-edged sword…

This became a weakness in Google’s algorithm and huge numbers of sites tried to game Google. A massive SEO industry arose, which exploited hyperlinks and other chinks in Google’s algorithm. Creating high ranked web sites for a particular service or product, could often be as simple as buying large numbers of links from other high ranked web sites, that are themselves created by other sites, etc.

These sites would often be disguised by populating pages with low quality content.

Google found it hard to distinguish between legitimate, original content on a site, and the spam, low quality web sites — until the Panda update.

Panda now gives Google a measure of the quality of a web site. This means it can identify the fake, spam sites, created to link out to others, and it can punish the web sites that are receiving those links, because it’s likely those links were bought and used to deceive Google.

Too much SEO = Deceit…

If you are deceitful, you are not trustworthy, therefore Google will sink your listing to the bottom of its search results.

It’s a great method to shakeout all those businesses that have tried to trick Google — you change the rules around links — and all those companies that tried to game the system are neatly exposed.

What used to be best practices for ensuring a high Google rank: lots of links from lots of other sites, has now turned into a massive marker pointing to an over-optimized, deceitful site.

Unravelling the web, erasing masses of hyperlinks…

This is why there’s an accelerating rush to erase hyperlinks. The world wide web is being unravelled. And Google is helping this unraveling, and helping the erasure of millions of links, by sending out warnings to web sites that they have questionable links pointing to them.

Danny Sullivan, a leading search engine expert, writing at MarketingLand:

“…publishers probably understand that links are important, but many of them probably really don’t understand what a mess the link situation is.”

He notes that some sites are receiving legal letters to erase links while some directories are charging others for not linking.

The North Carolina Community Colleges: Trends and Policies in the Last Five Years

North Carolina has always owned the distinction of being one of the best systems of higher education in the US. Aside from having numerous private schools of note, including the Duke, Wake Forest and even Davidson, the state has always invested funds into the system.NC Community Colleges have distinct trends in education policies and has noticed a lot of changes in the system owing to changes in the society.Research Triangle is still considered to be an example of prime importance because of its success in integrating higher education with entrepreneurship in the private sector. The University of NC at Chapel Hill is known to be the best public universities in the country.

With the growth in the education sector, the state government has always increased its funds in recent years even with the rising amount of inflation and huge population explosion. Even the political parties have maintained that the universities were an engine for better economic growth and equated the sector growth with the achievement of the American dream with diverse backgrounds. High appropriations were released with the thought that it would boost the access of students to college and even improve the state economy. North Carolina has a reputation of outspending compared to other states and US on the whole on higher education.

However, most analysts suggest that the data of higher education statistics show a different picture altogether. There has been huge increase in taxpayer support, but the state has not covered up the gap with the national average in the proportion of people with college degrees. Tuition costs have reached an all-time high while a huge portion of the funds have been allocated to non-instructional activities.

Lack of transparency is what prevents the causes to be known and questions to be answered. It has been difficult to assess what the students in North Carolina colleges and universities have achieved in their study period. Have their skills improved? Has their conduct improved? In general, not even the parents and teachers are aware about the answers to these questions.Higher education is equated with high costs and inefficiency. It is hard to measure productivity other than looking at outcomes. With the rising subsidies of the government, there were two major cases for public subsidy which were equality of opportunity and externality.

The equality of opportunity argument suggests that universities are potent vehicles for promoting the egalitarian ideal that has permeated American society since its beginning. Any person, even from the humblest beginnings, can rise to the top in our meritocracy-driven society. College degrees have become near prerequisite for economic success. Yet, college is costly. Public subsidies enable poor individuals equitable chance to attend college like their rich peers, which is otherwise not possible with the high fees demanded by these colleges.

It is also said that the society will be able to function better if bulk of the populace is not only educated but also opts for higher education. Analysts say that there are positive economic spillover effects with promotion of higher education by North Carolina Community Colleges and Universities. Higher spending in schools has also indicated an increase in college graduates.