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Article: Venture capital: in search of quality investments: a marriage between franchising and private equity is a win-win for all parties. (Finance).(Industry Overview)
- Article from:
- Franchising World
- Article date:
- April 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 International Franchise Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By some estimates there were $228 billion dollars left idle in venture capital and private equity investment funds by the end of 2002. Many of these firms have been unable to find quality investments even though multiples for the sale of privately held companies have declined in the past few years. The goal of private equity investment firms is to invest in strong management teams, proven systems, and high growth situations where conservative amounts of capital investment are necessary. That describes almost perfectly many franchise systems where the first generation owner has grown the business to a moderate size company, has management and a system in place, and would ...