How to Price, Measure and Fund a Firm Built to Last

Business hand holding hot chart in crystal ball

There are four numbers worth calculating before you decide anything.

By Hitendra Patil

There is a version of the independence story in which the independent firm is the more affordable alternative to the larger private equity-backed firm. That story is worth examining carefully because, in my experience, it rarely ends the way the firm owner hoped.

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Competing on price against firms with institutional capital is a long game you cannot win. PE-backed platforms can subsidize below-market pricing during a growth phase in ways that an independent firm’s income statement cannot absorb. If your primary competitive argument is that you cost less, the positioning battle is already lost.