Private Equity for struggling companies

It seems there are always some wealthy individuals ready to invest in a struggling company. But whilst the directors would love to get their hands on some extra private equity funding - the word 'equity' is the key word that should give pause for thought. In most cases, you're giving away a chunk of company equity in return for the business finance. Now in the case of company's facing liquidation - that might seem like a reasonable deal. You'd be giving away something that may soon be nothing. But the second sting of private equity may only balance the second blessing. The sting? The new director will want to make some changes that may have been causative, and that might be you or fellow directors. The blessing? The new director is generally experienced in the field of this particular industry and will be able to assist in most cases. Good luck.