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What to Consider Before Investing in a Private Business

Private business investment can offer attractive opportunities, but it differs from listed markets in important ways.

Liquidity

Private shares are hard to sell. Plan for a longer holding period.

Control and rights

Understand your voting rights, board representation, information rights and protections for minority investors.

Valuation

There is no market price. Ask how the valuation was reached and test the assumptions.

Exit

Consider how you will eventually realise your investment—sale, buy-back, refinancing or listing.

Seek independent financial and legal advice. Explore business investment opportunities.

This article is general information only and is not financial, legal or investment advice.

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