The Benefits Of Working With An Independent Sponsor
It has become increasingly more difficult over the years for the traditional private equity method of raising funds. More investment professionals have become eager to complete deals on a deal-by-deal basis as independent sponsors. Why? Many professionals have parted from their firms to an independent sponsor role due to current economic conditions and regulatory environment since 2008. These extremely experienced individuals are more likely to be industry focused and they do not have a large portfolio under their arms which means more time to work directly with management to improve operations. The independent sponsor will have value added knowledge of how to grow the company verses the traditional private equity method of just bringing in and closing the deal. Some independent sponsors, like Lakelet, are focused on providing high-level strategic and operational expertise to improve the operating results of the acquired company. The real value comes from what the independent sponsor does after buying the company which is likely above the efforts of a private equity group. Lakelet's advice to seller: look and evaluate what is being brought to the table.