The Private Equity Boon

Selling To Private Equity - Planet Investment And Ventures

Private equity companies are always on the lookout for new opportunities and if you are the owner of a company, you might have received a call from one or two private equity firms. Private equity firms raises money from investors in a fund that usually lasts 10 years which is utilised to procure either a minority or a majority stake in a company. They usually seek companies who have good management teams, operate in growing markets, and who have good upsides. These emerging companies usually lack proper funding to utilise the market opportunities that are ahead of them, which is where private equity comes into play.

The firms provide substantial ROI to their investors in five to seven years either through a total sale of the company or by selling their stake to a strategic or financial buyer. Private equity investors rarely buys 100% of a company but keeps the present management team and enables them to move forward with their future vision of the company – and to scale the business by chasing opportunities that were unreachable earlier. Private equity firms brings in years of combined experience and expertise in the business that they have procured and act as a business partner with some level of involvement – either a board seat or operating agreement provisions.

So how do you know Planet is a good choice for your business? Radhakrishna and Company was established in the mid-60s by Mr Radhakrishna Shete to provide marine catering and ship chandelling services in Mumbai, India.  The Company focused on consolidating multiple product categories of food, non-food, ambient and temperature controlled products and supplying these to merchant ships docking in Mumbai.  Mr Raju Shete assumed responsibility for the Company’s business in the mid-70s, and expanded the Company’s operations into the food, supply chain, people management and energy industries. Some past partnerships, joint ventures and business collaborations that Mr Shete has been associated with include those with Accor, the Compass Group and Sodexo.  Mr Shete served as the founder and chairman of Radhakrishna Hospitality Services (RKHS; now Sodexo, India), founder and director of Accor Services India (now Eden Red, India) and founder and director of Consoldiated Services (now part of the Compass Group).  In these roles, Mr Shete has built large-scale services companies with thousands of FTE staff and hundreds of service unit locations globally and in India. Today, Planet Investments & Ventures is a 50 year old company which seeks to build economic and social value in emerging markets relentlessly.  The Group’s present interests are focused on 6 industry sectors – People, Logistics, Aliment (French for Food), Nature, Energy, and Technology.

Why is selling good for you? One great reason is your company sees a lot of opportunities for growth that would be impossible to pursue without the assistance of a private equity investment. Many entrepreneurs dream big where they want to disrupt entire markets and industries – which can be difficult to do without access to a large amount of capital depending on the business model. It would also make sense if the founder is interested in taking some money off the table and into their own account while also getting the chance to build up value of the remaining equity stake with the help of the influx of capital. That would truly be a win-win scenario for both the entrepreneur and the investor. Planet Investments & Ventures are always looking forward to work with great management teams who are chomping at the bit to grow and chase down every opportunity they possibly can.


Niku Dutta, Digital Strategist