Frequently Asked Question

At Arkwood Equity, we specialize in a variety of industries, including healthcare, technology, and energy. Our goal in all cases is to match companies and investors based on the strategic fit and the growth potential. Our expertise spans:

• Medical – Medical devices, healthcare services, and pharmaceuticals
• Energy – Renewable energy, oil and gas, and other energy-related sectors
• Biohacking – Companies at the forefront of human enhancement technologies
• FinTech – Focusing on companies that use technology to revolutionize financial services
• Software – Targeting companies that develop innovative solutions across many industries
• Technology – Covering a wide range of tech industries, including hardware and tech-enabled services
• Healthcare and wellness – Companies that not only promote health and wellness but also strive for innovation

The difference between private equity and venture capital is that private equity typically involves investing in an established company to enhance its value and sell it for a profit.

Venture capital, on the other hand, focuses on early-stage companies with serious growth potential. You’ll also usually see smaller investments in the world of venture capital compared to private equity.

Lastly, private equity is generally viewed as lower risk than venture capital. This comes down to the fact that investing in a new, unproven start-up has a higher chance of failure than investing in a strong, well-established company.

Private equity refers to investing in private companies that aren’t listed on public stock exchanges. The goal of this investment is to help your company grow, improve operations, restructure, or execute any other tasks that increase your profitability.

Occasionally, this can also take the form of buying out a company that is listed on public stock exchanges and then delisting it. The goal in this scenario is the same: improving your company’s financial health and profitability.

As a broker, we connect companies like yours with private equity firms that leverage their capital and expertise to help you grow. We set up introductions to potential investors and assist with negotiating the terms to ensure successful partnerships. Our services include:

• Finding suitable private equity firms that match your company’s needs and goals
• Preparing your company for the investment process, including due diligence and putting together financial documentation
• Providing ongoing support throughout negotiations to secure the best possible terms for your company

Typically, private equity firms are interested in companies with strong growth potential, effective management teams, and clear opportunities for improvements. The key attributes they look for are:

• Established revenue streams and profitability, or a clear pathway to get there
• Competitive advantages in their industry, such as intellectual property or unique products/services
• Clear potential for scalability and significant market growth

Generally, there is no single industry that private equity firms focus on. While some firms may choose to specialize in a specific area, the overall range is quite large, from technology to manufacturing to healthcare.

The potential benefits of partnering with a private equity firm include:

• Capital infusion – Access to funds for expansion, acquisitions, or debt repayment
• Strategic support – Guidance on business strategy, management, and operations
• Network access – Powerful connections to industry experts, potential customers, and new markets
• Enhanced governance – Meaningful improvements to your corporate governance and operational efficiency

As a broker, we identify potential investment opportunities for your private equity firm and connect you with them. We do this by tapping into our network and industry-specific knowledge while focusing on your specific investment criteria.

Our role includes:

• Deal sourcing – Identifying companies that match your investment profile
• Initial vetting – Organizing preliminary assessments to ensure each opportunity’s quality and overall potential
• Facilitation – Assisting in the negotiation and structuring of the agreement to ensure both parties secure favorable terms

We source investment opportunities by utilizing our extensive network, conducting market research, and meeting with our industry contacts. We look for both companies seeking capital and companies looking to sell.

Then, we vet every potential opportunity to confirm they meet your specific investment parameters. We will never waste your time on options that don’t align with your goals.

The typical timeline for closing a deal can vary quite a bit depending on the complexity, how ready both parties are, and how long it takes to secure any necessary regulatory approvals.

But the biggest deciding factor is often how long the negotiation process takes. Especially for more complex deals, lengthy negotiations can extend the process.

All of that said, it often takes several months to get from the initial contact to closing the transaction.

For private equity firms, the major benefits of working with a broker include:

• Efficiency – Streamlining the deal sourcing process so you can use your time efficiently
• Access – Gaining exposure to high-quality, vetted opportunities you might not have been aware of otherwise
• Expertise – Leveraging our knowledge and experience across every phase of facilitating a deal

We ensure the quality of our investment opportunities by adhering to our time-tested research and verification process, which involves:

• Initial screening – We assess the financial health and growth potential of each company while looking out for any red flags
• Market analysis – We evaluate the competitive landscape and market dynamics to ensure we’re getting the full picture, not just what the company wants us to see
• Management review – We put the management team under the metaphorical microscope to ensure their capabilities and track record are completely solid