Shoot the Moon with Revenue Rocket

Key Points Discussed

• Independent sponsors are individuals looking to invest in or acquire their first company, often using outside financing.
• Independent sponsors differ from private equity funds in that they need to secure funding after finding a deal, whereas PE funds have pre-committed capital.
• Sellers need to carefully evaluate an independent sponsor's ability to raise the necessary funding to complete a deal.
• Independent sponsors may offer higher enterprise values than other buyers, but the deal closing is less certain.
• Independent sponsors should have a strong strategic, cultural, and financial story to present to sellers.
• Independent sponsors should line up multiple potential funding sources to mitigate the risk of a single source falling through.
• Sellers can sometimes negotiate shorter exclusivity periods in LOIs with independent sponsors.
• Advisors like Revenue Rocket can help sellers evaluate and qualify independent sponsors to improve the chances of a successful transaction.
• Independent sponsors can be a good option for sellers, but the process requires careful consideration of the risks and benefits.

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Listen to Shoot the Moon on Apple Podcasts or Spotify.

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