Critical questions to prepare for private equity group interviews

When interviewing private equity groups during the capital raising process, there are certain critical questions that will be asked and that you should be prepared to answer.

These questions are from a recent interview our client had with a private equity firm. We provided guidance to prepare answers in line with what the equity group expects to hear.

Q: “What was some of the high priority stuff you worked on?”

A: What roles, responsibilities did you have that you liked and where you excelled?

Q: “How do you get into the business, what’s actionable?”

A: Actionable means companies that are available at the right valuation, in the right space, are the right size, the right fit., etc. What action steps do you take to make the first acquisition?

Q: “How do you see this working, how do you put it together?”

A: What are the action steps required to make the transaction happen; what do you see as your role and your strategy to make your idea real?

Q: “How do you see the near term risk?”

A: What threats, what pitfalls do you foresee that will prevent the deal from happening or that may arise post-transaction? What are the risks going forward?

Q “What do your customers look like.”

A: Who, specifically, are your customers? Who will buy your products or services?

A: “What are the key roles you would want in place?”

A: What jobs and people are critical to execute your strategy? Who are the people you will put in place in the key roles?

Q: “What is the value proposition to the target companies?”

A: Why would the target company want to sell to you? What’s in it for them and their shareholders? What do you offer to make them want to be part of your organization?