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Which one of the below companies would not be an ideal candidate for private equity? a....

Which one of the below companies would not be an ideal candidate for private equity?
a. A hyper-growth (annual growth rate over 20%) firm
b. A firm with products that have short sales cycles
c. A firm with high-risk (more than 25% risk of failure) products
d. A firm with 55% gross margins in an industry that has 35% average gross margin
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Answer #1

The company which would not be an ideal candidate is

(B) a firm with product that have short sales cycle.

The private equity firms are interested in high growth companies even if there is certain risk

(A) It is ideal since it is expecting growth of over 20%

(C) The probability of success is still 75%, private equity firms do take that much risk.

(D) average margin is higher than industry, private equity would be definitely Interested.

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