On-Demand

The Independent Sponsor marketplace has proven itself agile in volatile times and is becoming more sophisticated and accepted. While this is mostly positive news, it also attracts more competitors. Some sponsors have found it difficult this year to find strong deals on favorable terms.

Risks posed to Independent Sponsors are often shared with middle-market firms deciding their strategies. Smaller firms unable to handle a lack of cash flow in the last year may be ripe for purchase. Meanwhile, firms that provided steady performance this year and in 2020 are fetching strong prices, after proving their resilience and promising future stability at a time when that is valued. Left on the sidelines are firms with more erratic showings, while investors wait for business to return to normal, or at least a new version of it. That includes firms doing exceptionally well this year, due to pent-up demand for their products. This waiting may result in a bevy of potential deals in 2022.

So while the economy simmers, independent sponsors can consider broad new marketplace challenges such as cybersecurity threats impacting risk profiles and possible tax reforms, as well as new opportunities such as a booming e-commerce market and the potential impact of nationwide investment in infrastructure.

Topics Covered:

• How capital gain and other tax reforms may impact the marketplace
• Sourcing proprietary deals in new and classical ways
• Providing ESG value to purchases and operations
• Comparing long-term sector performances for sustainable returns