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Local Marketing, Inc. in The New York Times

Owners Should Know What They’re Getting With Private Equity

Puneet Mehta, an Atlanta entrepreneur, remembers how eager he was to take the money. When investors courted him, he felt “razzle-dazzled,” enchanted by their promises to help him build the online marketing business he had founded in 2006.

“Our goal was to expand rapidly with private equity, put in a bunch of sales teams, get some distribution networks going,” Mr. Mehta explained. He ended up with $1.5 million in private equity growth investments and venture capital. “But I realized after we had raised the money that there were so many clauses that came with it that I had lost complete control of the company,” he said…

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