Often, small- and medium-sized companies do not have the necessary cash reserves to take advantage of market opportunities or even ensure their survival once issues of succession arise. In such cases, private equity investors may contribute not just the capital needed to overcome these obstacles but also valuable advice as to how challenges can be dealt with from a managerial perspective.
However, important equity investment issues such as company valuation methods, supervisory rights, and the goals of private equity players are sometimes not made clear.
VENTRADA aims to structure the equity financing process according to the following scheme: