8th Bridge Capital on Private Equity for Entrepreneurs

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(Newswire.net — February 13, 2018) Los Angeles, California –Recent passage of a substantially-altered federal tax plan has cemented the economic value of family-owned businesses in the United States. The Trump Administration’s focus on rebuilding American businesses is significant; financial analysts indicate that family-owned businesses may contribute over 60 percent of the country’s Gross Domestic Product (GDP). 8th Bridge Capital, a private equity firm based in Los Angeles, California, sees this tax overhaul as both a blessing and a burden for family-business entrepreneurs. “Deduction limits on debt interest in the new tax plan may actually hinder business growth,” says a spokesperson for the firm. “In the wake of the new plan, it is critical for entrepreneurs to understand the resources, options, and limitations private equity provides for their business ventures.” To learn more about the company, visit https://www.linkedin.com/company/8th-bridge-capital.

The first aspect entrepreneurs need to understand is the role of the private equity firm itself. The private equity industry has suffered under several misconceptions over the years, primarily due to some firms focusing on short-term gains for their investors over long-term growth for stockholders. A number of unscrupulous private equity firms engaged in practices derided as “strip and flip schemes”, overleveraging assets and scrapping existing managers and directors to install their own leadership teams. This practice had the result of damaging the reputation of those equity firms that exist solely to help small businesses find the capital needed to flourish.

Private equity (PE) firms can be a great financial solution for smaller family-owned businesses. Such businesses often have difficulties in financial self-governance and in developing sound business strategies. Too often, an entrepreneur may have a marketable idea, but little understanding of the processes needed to leverage that idea into a successful business. Firms such as 8th Bridge Capital specialize in providing a full range of business-oriented services, including accountability and precision in investment strategies. Good equity firms can help entrepreneurs navigate potential risks that could harm the business even before launch. And, since many PE firms work with small portfolios, they have the ability to provide substantial resources to the businesses they work with. These resources often go into product or service development as well as implementation of long-term growth plans.

Most crucial in deciding to work within the private equity framework is for entrepreneurs to do their homework before entering into partnerships. Finding the right PE firm with the financial resources and expertise can be difficult in a crowded marketplace; it can be beneficial to reach out to other business owners who have taken investments from such firms to gauge their experiences. Another outlet for small businesses is to leverage business development organizations and their relationships with investors. “Chambers of commerce and local small business organizations often help connect entrepreneurs with PE firms in their area,” adds the company spokesperson. “These organizations are a valuable resource for identifying potential investors.” For more information on 8th Bridge Capital, LLC, and their work in the private equity industry, visit https://www.crunchbase.com/organization/8th-bridge-capital.

About 8th Bridge Capital

Established to provide business and real estate investment opportunities for high net worth individuals in Asia, 8th Bridge Capital serves as the investment bridge between East and West. Staffed with financial professionals adept at managing investments, the Los Angeles-based private equity firm has developed a global network. The firm is known for its trusted relationships with foreign investors and for its expertise in strategic advisory services.

8th Bridge Capital

801 S. Olive Street
Suite 702
Los Angeles, California 90014
United States