This September, the 17th Independent Sponsor Summit gathered independent sponsors and capital providers in New York City for a two-day event filled with networking, knowledge sharing, and strategic discussions. The summit provided a unique platform for attendees to explore the latest trends, share best practices, and foster connections within the industry. Sponsored by AlphaSearch, the premier B2B database solution for M&A professionals, this event highlighted the importance of innovation and collaboration in driving successful investment strategies.

Day 1 Highlights

The summit kicked off with morning Executive Exchange discussions, where industry leaders from Ice Miller, Insperity, Verivend, ECA Partners, STNL Advisors, and Lippes Matthias led intimate conversations on topics that are critical to independent sponsors today. Participants delved into value creation through critical executive placement, the tech revolution for independent sponsors, and strategies for partnering with the right capital providers. These foundational discussions allowed the attendees to explore the challenges and opportunities facing independent sponsors in a competitive landscape.

The first panel of the day was moderated by Elena Mervine of CohnReznick, the conversation deepened with insights on how to succeed in today's competitive and diversified market. Panelists emphasized the need for deep industry expertise to facilitate quicker deal assessments and the value of early involvement from private equity or credit partners. A clear exit strategy emerged as a vital reassurance for investors, while the panelists reiterated the importance of strong leadership and decisive actions, particularly in addressing underperforming CEOs. This focus on strategic partnerships and disciplined execution became a recurring theme throughout the summit.

Building on this theme, Mark Sinatra, CEO of Aspen HR, presented a compelling HR case study, spotlighting the significance of HR due diligence in alternative investment funds. His insights into conducting thorough I-9 audits revealed how proactive HR measures not only mitigate legal risks but also streamline acquisition transitions. This session reinforced the notion that a comprehensive approach to due diligence is essential for successful transactions.

As the day progressed, the next panel, moderated by Nichol Chiarella of Citrin Cooperman, turned to the topic of tax due diligence. The panel highlighted the benefits of Qualified Small Business Stock (QSBS) and the importance of optimizing tax structures to enhance deal outcomes. The rising interest in tax liability insurance was also discussed, illustrating the complexities that investors must navigate in today’s shifting tax landscape.

The day’s content concluded with an insightful keynote interview conducted by Sylvie Gadant of Citrin Cooperman featuring Nick Jean-Baptiste, Founding Partner at Jacmel Partners. He shared valuable lessons learned from his unique journey transitioning from independent sponsor to majority owner, focusing on effective succession planning and team motivation. Attendees gained crucial insights into the essential skills needed for managing a business and the challenges of merging the roles of sponsor and operator.