Private Equity Basics
This is the typical time horizon a private equity firm holds a portfolio company before seeking an exit.
What is 3 to 7 years?
This is above the Line: Revenue and expense related to core operations, Impacts EBITDA.
Operating Expense (most commonly known as OpEx)
This is a newly formed division of Enterprise Fleet Management that focuses on leveraging private equity relationships to retain clients and grow new business in the private equity sector.
This is the thorough investigation and analysis of the private company to ensure that the investment aligns with the PE firm’s strategy and risk tolerance.
What is Due Diligence
This is "below the line": Revenue and expense NOT related to core operations, Does not impact EBITDA
Capital Expenditures (most commonly known as CapEx)
This individual establishes Partnership Agreements with Private Equity Firms and all of their qualified portfolio companies.
Who is Billy Backus (EFM Strategic Partnership Manager)
This is a preliminary, non-binding document that outlines the key terms and conditions under which a buyer (usually a PE firm) intends to acquire a company. It is often the first formal step in the transaction process.
What is Letter of Intent or LOI
This is a measures of a company’s overall financial performance.
What is EBIDTA
This individual acts as a liaison between the PE/Portfolio companies and the field. Consolidates the financial impact and reviewed on QBR’s and Annual reviews. Leverage’s firms for introductions to new opportunities.
Who is Frank Ashby (EFM Strategic Partnership Manager)
Any business that a private equity firm has invested in and currently holds in its investment portfolio
What is a Portfolio Company or PortCo
This is a key performance metric in private equity that shows how many times the original investment has been returned, regardless of how long it took.
Multiple On Invested Capital (MOIC) also known as a "multiple".
This individual oversees the division for new and existing key partners throughout North America for Private Equity, National Associations, and Group Purchasing Organizations (GPO’s)
Who is Kash Morgan (AVP of Partnerships)