How to Build Relationships in Private Equity

Why are Relationships so Important in Private Equity?

Owners of companies do not always sell to the highest bidder. Owners will look at the entire investment package, which includes the relationship they have with the investor. Many owners looking to sell only tell a few investors, so building good relationships in the industry is critical.


Building Relationships in Private Equity

Building strong relationships is a multi-step process.

  • Starting the Relationship - Identify the sector, geography, and size of potential companies and consult your current relationships if any of them can introduce you directly to business owners
  • Deepening the Relationship - Create a welcoming environment when meeting with business owners. Ask questions to keep the conversation about the owner. Finally, serve as a super connector
  • Maintaining the Relationship - Continually adding value, building trust, and having a 'giver' mindset will help maintain strong relationships in the industry

Get our free one-page summary for this topic

Receive our popular one-page summary that summarizes this topic into concise and digestible concepts for free!