How Independent Sponsors Are Getting Deals Done In A Seller’s Market

With equity dollars abundant and debt cheap, buyers are able to pay high multiples for attractive businesses. How can independent sponsors compete in the market and still receive favorable economics from their capital providers?

Topics of discussion:

• With the market booming, is a good or bad time to be an independent sponsor?
• Tactics to convince sellers and their advisors of capital in the LOI stage.
• At what stage in the deal process is the Management Fee discussed with the capital provider?
• How much of a negotiation factor is the Carry with capital providers? Where is the market heading?
• Of the five typical “sources” that provide value for the seller: equity dollars, leverage, earnouts, rollover, and seller financing, which are favoured as part of a typical strategy?
• As a capital provider, what makes working with IS a big part of the strategy?
• How do independent sponsors view having an anchor LP vs. having multiple LPs, either in one deal or across several platforms?

Chase Stuart, Partner, Ice Miller LLP

Chase Stuart is a partner in Ice Miller's Business Group. He represents a variety of private equity funds, family offices, independent sponsors, mezzanine funds, and privately held businesses. He provides strategic and legal advice in their investment and general corporate strategies, including leveraged buyouts, mezzanine financings, growth capital transactions, early and late state private equity investments and secondary transactions. He represents family, founder, and entrepreneur-owned businesses as general corporate counsel and as a sell-side advisor. He has represented a variety of companies in sectors such as technology, manufacturing, health care aerospace and defense, gaming, and business services.

Doug Bunim, Director, OFS

Mr. Bunim is a Director of OFS Capital Management, LLC and is responsible for sourcing and evaluating investment opportunities for the Middle Market Lending business as well as portfolio management. Prior to joining OFS Capital Management in 2013, Mr. Bunim held positions at Tamarix Capital Partners, an investment firm dedicated to providing flexible financing solutions to lower-middle-market companies.

Brian Guerin, Partner, Calvert Street Capital Partners

Since early 2005, Brian has assisted in managing Calvert Street's equity funds. Prior to joining Calvert Street, Brian was an Associate with Ernst & Young Corporate Finance and later with the Due Diligence Group, specializing in M&A transactions between private equity firms and lower middle market companies.

Jeff Gonyo, Managing Director, Geneva Glen Capital

Jeff has more than 25 years of successful private equity investment experience. Prior to establishing Geneva Glen Capital in 2008, Jeff was a Managing Director for over ten years with Wind Point Partners, where he was a general partner in four funds that grew to over $2 billion today in total capital under management.

Matt Cohen, Principal , Prodos Capital Management LLC

Mr. Cohen has a diverse background which includes M&A, principal investing, real estate and politics. Mr. Cohen has a diverse background which includes M&A, principal investing, real estate and politics. Prior to joining "Prodos", Mr. Cohen was Director of Investments at AlphaTerra Partners. Prior to AlphaTerra, Mr. Cohen was a Senior Associate at Delancey Street Partners, a boutique merchant bank where he focused on advisory mandates for public and private middle market companies. Prior to Delancey Street, Matt was an Analyst at UBS Investment Bank in the Mergers & Acquisitions Group based in New York. At UBS, he covered a range of industries including media, telecom, consumer, healthcare, real estate and energy.