What to Expect When Selling Your Business to an Independent Sponsor

About the Episode

If you’re thinking about selling your business, you might attract an independent sponsor, a specialized buyer that operates differently from traditional private equity firms. This episode explores how independent sponsors operate, their deal structuring approach, and what they seek in a potential acquisition. Listen to this episode to learn if independent sponsors are a good buyer for you, or if you should target more traditional buyer types.

We have no pressure to deploy capital. So we don’t have a fund sitting there that we have to deploy 500 million or 750 million, or a certain amount of money over a certain period of time. We can be very patient

Sequoya Borgman

What You’ll Learn

• Why independent sponsors care about your legacy: Independent sponsors often have a longer-term investment horizon than traditional private equity, which means they’re less likely to “flip” your business. This appeals to sellers who want their company and employees to continue to thrive after the sale.
• Independent sponsors don’t have a traditional fund: Unlike private equity firms, independent sponsors don’t manage a large, pre-committed fund. They raise capital for each specific deal, allowing them to be more flexible and opportunistic with their investments, even if it means holding the business for 10 or 20 years.
• Independent sponsors might be a better fit than PE firms: If you’re a business owner with $3 to $15 million in EBITDA, an independent sponsor is a likely buyer. They are very active in the lower middle market and often pursue proprietary deals, so they may be the perfect fit for your company.

Topics Covered

Want More? Related Resources:

• The Basics of Independent (Fundless) Sponsors in M&A
• M&A Guide | The 4 Types of Buyers of Businesses
• Earnouts When Selling or Buying a Business | Complete Guide

Meet Our Guest

Sequoya Borgman

Founder and CEO of Borgman Capital | Milwaukee, Wisconsin

Sequoya Borgman is the Founder and CEO of Borgman Capital, an investment firm specializing in acquiring majority interests in well-established, closely held lower-middle market companies, a role he has held since October 2017. With more than two decades of experience in mergers and acquisitions, including structuring, planning, and due diligence, Sequoya brings extensive expertise to the firm.

LinkedIn: https://www.linkedin.com/in/sequoya-borgman-8a6057a/