Private equity (PE) financing for small and medium enterprises (SMEs) is a fairly nascent industry in the Middle East and North Africa (MENA) region, but it is increasingly being accepted as SMEs seek financing to grow and expand. In Lebanon, awareness in the business community of PE financing, with an emphasis on providing value-added services as well as capital, has been increasing in 2011 and 2012, promising a deep and exciting deal flow in 2013. PE firms tend to invest in companies that have validated their value propositions, acquired a customer base, identified target markets and are ready for accelerated growth and expansion. While PE firms have extensive expertise in various sectors, they approach every deal as a unique opportunity and agreeing on a “fair price” for each target company is one of the key challenges. While the metrics and methods used in valuing companies are relatively standardized globally, Lebanese
