Private equity

• Private equity


  Businesses can invite specific people to become part owners by swelling them shares in the business

  Becomes incorporated and company structure

  -ownership becomes diluted as it is shared among more people

  -Less control for some owners depending on their ‘share’ of the business

  -selling shares can be expensive and complex to organise
• Finance raised through private investments (not on the ASX)

  Owners have the right to choose who invests

  Shareholders still receive dividends but they are less involved in decision making

  Gives the owners more control over the business

  By not listing the company on the stock exchange, they save on costs