It has become increasingly difficult for the traditional private equity method of raising funds. More investment professionals have become eager to complete deals on a deal-by-deal basis as independent sponsors. Why?

Many professionals have parted from their firms to an independent sponsor role. These extremely experienced individuals are more likely to be industry-focused, and they do not have a large portfolio under their arms, which means more time to work directly with management to improve operations. The independent sponsor will have value-added knowledge of how to grow the company versus the traditional private equity method of just bringing in and closing the deal.

Some independent sponsors, like Lakelet Advisory Group, are focused on providing high-level strategic and operational expertise to improve the operating results of the acquired company. The real value comes from what the independent sponsor does after buying the company, which is likely above the efforts of a private equity group. Lakelet Advisory Group’s advice to seller: look and evaluate what is being brought to the table.