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According to The Center for Women’s Business Research, more than 50 percent or nearly 10.4 million firms are owned by women, employ 12.8 million people and generate $1.9 trillion in sales. For the past two decades, majority women-owned firms have continued to grow at around two times the rate of all firms (42 vs. 24 percent).

In 1977 three runners from Vermont decided to improve the comfort of active wear for women. These women truly were the mother’s of an invention. Not only did they solve their problem, and invent an iconic product, they were hugely successful and sold their company to a large multi-national corporation. Today their invention is immortalized and displayed in The Smithsonian and The Metropolitan Museum of Art.

Have you ever had one of “those” ideas, or have the desire to go it on your own business-wise? If you are one of the millions of business owners you too could one day have the opportunity of a lifetime. What would you do? Imagine this setting ...

You’re at your desk, debating whether to order Chinese or a pizza for lunch, when the call comes. A private equity firm has your company in its sight, and the caller wants to chat. It’s not a mistake. Private equity buyouts aren’t just for large corporations — they occur at the small-business level, too. Nearly 90 percent of all private equity deals are under $1 billion.

However, unlike publicly-owned companies, your business isn’t up for grabs just because some investors noticed its potential and want to buy a stake in it. You have a choice. You can hang up and order your pizza or you can start negotiations with a partner who may offer to increase your net worth, underwriting growth, funding acquisition of a competitor or improving your balance sheet. Ultimately, you could reap a very large financial reward. But there may be a downside, too.

Whose Vision Is It?

Private equity firms prefer deals that allow them to make a profitable exit through an initial public offering (IPO) or a sale in about five years. Typically, they do not run the businesses in which they invest, often leaving daily operations to existing management. Instead, they will sit on your company’s board and offer advice on strategic decisions about your product line, geographic expansion, key management hires and preparing for the sale or IPO.

Working for owners with a different vision of how your company should operate could be frustrating. After all, your skills brought the company to where it is today. And walking away from a firm that you founded — even if your pockets are well-padded with cash — might be emotionally difficult, especially if you’ve always regarded the company as your legacy. Business owners in such a position sometimes feel disloyal to long-time employees, whose job security can no longer be guaranteed.

Investigate on your own

On the other hand, you may believe it’s time to sell your company because you need liquidity, have a growth opportunity that requires more capital than is available, or are nearing retirement. A private equity firm sale may allow you to continue to manage and partially own your company, at least for a while, and to profit from its future growth, if that is what you want to do.

Various types of private equity may be available, depending on your size and current stage of growth. Look for more than one option. Unless you have a deal that seems too good to pass up — and you should investigate any proposal carefully making a commitment — you’ll be in a better negotiating position if you know your alternatives.

Use the interested firm’s website to check out its other interests and its track record. Other sites provide profiles of equity firms that deal with businesses of your size in your region and industry. Network with other businesses to produce leads. Learn more through the Association for Corporate Growth (acg.org). Founded in 1954, it’s for professionals involved in corporate growth and development, mergers and acquisitions.

A favorite movie at our house is “Angels in the Outfield” with Danny Glover, Tony Danza and Christopher Lloyd. The movie could be summed up by one line that was repeated throughout by an optimistic wide-eyed child who believed “it could happen”. It could happen to you!

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Darcie Guerin is a financial adviser and branch manager at Raymond James & Associates Inc. at 606 Bald Eagle Drive, suite 401, Marco Island. Contact her at Darcie.Guerin@raymondjames.com, 389-1041 or toll-free (866) 343-0882.