Looking for investments from a private equity firm can often be a lengthy process depending on a variety of factors. The private equity firm will want to look at your business plan as well as take a good hard look at your investing proposition before they decide to invest. This can take anywhere from one month to one year. The average time you’ll have to wait is about three to six months. The wait period will have a lot to do with the quality and type of information that you provide to the private equity firm. Once you have prepared your business plan you’ll be ready to present it to several different private equity firms. Make sure that you choose only those firms who have the same investment preferences as your own company. These preferences should include (1) the amount of equity you’re looking for and the amount that they are willing to invest, (2) the location of your company and theirs, (3) the investment stage, and (4) the industry sector that you are involved in. You might to consider only sending a copy of the executive summary of your business plan to the potential investor. This can save you time and money while at the same time increases your chances of actually getting attention.

Private equity firms are bound by a code of conduct that requires them to treat any information you give them in a confidential manner. However, if you’re concerned about any confidentiality issues you should be sure to see if the potential investor you’re communicating with, has any major conflicts of interest. This can include any investments they have with any of your competitors. You also have the option of omitting any data that is extremely confidential until that time as the investor shows interest in investing in your company. Consider sending a letter of confidentiality along with your business plan, or the executive summary portion of your business plan. If you want to send along a letter of confidentiality you can have your lawyer help you draw one up to meet your own needs. Ask the private equity investor to sign the letter of confidentiality before you hand over your business plan.

Within a week of approaching a private equity firm you should receive some indication of whether they are interested or not. You might get a quick no or the investor might ask you for more information. As well, the investor might request a meeting with you to talk with you face to face. If you get a flat no you can try to find out why you were refused so that you can make revisions to your business plan for future potential investors. Try to strengthen your plan before approaching other private equity firms.