When you go through the trials and tribulations of building a business from scratch, taking care of your people and preserving your culture takes on an oversized importance.

My brother Andy founded eLocal in 2007 to help connect local businesses, like home and legal services, to consumers. I joined shortly thereafter to turn Andy’s idea into a full-fledged business. It started as an online subscription directory service, and ultimately evolved to the performance-based advertising business it is today. Over 10 years, we experienced rapid growth and found ourselves at the forefront of a radical shift in the advertising industry towards increased pricing transparency.

But to accelerate this growth, expand into new markets and pursue complementary acquisitions, while at the same time take some chips off the table, we needed to find a private equity partner. Amid an endless list of considerations was one closest to the hearts of many founders out there: How do we bring private equity backing into our business without damaging or disrupting the culture we worked so hard to build?

It’s no secret — private equity firms have powerful motivation to grow companies and help maximize the return for their investors. As business owners, that is our focus too. But for any founder I’ve met, while money is an important driving factor, it is not the only one. When you go through the trials and tribulations of building a business from scratch, taking care of your people and preserving your culture takes on an oversized importance. People and culture got you to this point and are essential to future success.

When I talk to other founders who are considering private equity, respect for culture and alignment around the company vision are always key parts of the conversation. Here is some of the advice I share with them.

My advice on how to choose a private equity firm who can elevate your business with their resources and experience, while preserving your vision and culture.

Don’t partner with anyone you’re fearful of being completely open with. Look for a firm who will help you solve problems, not impose penalties for having them.

Show me more than just the money. The best private equity firms bring more to the table than just money. Instead of approaching a private equity deal as a necessary evil and hoping for minimal interaction after the transaction, view it as an opportunity for fresh perspective, advice and collaboration with a valuable business partner who specializes in growing companies similar to yours. Many founder CEOs don’t have access to other CEOs or the inner workings of other growing companies. A strong, well-connected private equity firm provides that access. Don’t underestimate this value.

Also, don’t partner with anyone you’re fearful of being completely open with; look for a firm who will help you solve problems, not impose penalties for having them. While private equity is about the infusion of new capital, it should also be about real partnership.

Interview a private equity firm the same way you would interview a C-level executive joining your culture and company.

Find a firm willing to integrate into your culture. Taking on a private equity partner will undoubtedly result in some level of organizational change, at least at the most senior levels. However, assuming you have a highly functioning organization, that change should be largely imperceptible throughout the broader company. I have often said that nobody would’ve known that we took on a private equity partner had we not announced it. Be wary of private equity firms that take a heavy hand, expecting companies to adopt a set “playbook” across their entire portfolio.

I suggest interviewing the PE firm in the same way you would interview a C-level executive joining your culture and company. There needs to be a real fit with the individuals joining your board and working with your teams. If done right, your private equity liaisons will become important contributors to your broader team, especially if you end up expanding through subsequent acquisitions.

Through your search, prioritize teams that are genuinely interested in understanding your business, and more importantly your desires as a founder. A firm’s willingness to think creatively and craft a capital solution that addresses your concerns as a founder is an important aspect as well.

Most importantly, try and probe to find examples of adversity or other difficulties and how the private equity firms reacted in those situations.

Turn to your peers for references. Start your search by asking other companies about their private equity experiences and recommendations. Once you have a few names in mind, arrange meetings to learn more about their approach. Don’t be afraid to ask each potential private equity team directly what they value most and see how it fits with your company’s vision.

I also strongly recommend calling the CEOs of their portfolio companies to ask about their experiences interacting with particular firms and their teams. Most importantly, try and probe to find examples of adversity or other difficulties and how the private equity firms reacted in those situations. Most private equity firms are just fine during the good times. The real test is how they react in challenging times.

Get clarity of vision. Have a candid conversation about your vision for the future and ensure that your potential partner shares that vision. The more specific the better. If there are certain items that are of particular importance, share them. Avoid making assumptions and be sure to address your most important concerns in writing.

You and the private equity team must also agree in advance on a common plan for the first 100 days after the sale closes. Get clarity on whether they have any specific expectations regarding standardizing reporting, improving specific business functions, updating the financial model, etc.

Here’s the bottom line.

Your company’s culture helped you get where you are today and will continue to play an essential role in your next stage of growth. If taking on a private equity partner is one of the best paths to achieving your growth objectives, make sure you seek out a private equity firm that is aligned with your founder vision and purpose. By knowing what’s most important to you and your team, and how much you’re willing to compromise, you can structure a deal that works for all parties. A culture-minded private equity firm can bring a lot more than capital.

This GrowthBit is featured in LLR’s 2022 Growth Guide, along with other exclusive insights from our portfolio company leaders and Value Creation Team. Download the eBook here.