Built to Sell Radio Ep 489 Inside the Mind of an Acquirer: Sequoya Borgman on How Independent Sponsors Buy Companies, Structure Deals, and Spot Pretenders
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Apr 11, 2025 Sequoya Borgman, founder of Borgman Capital and an expert in independent sponsorship, shares insights from his experience acquiring 19 companies. He discusses how independent sponsors vary from traditional private equity, utilizing deal-by-deal funding. Sequoya highlights the evolving landscape of lower middle-market acquisitions, emphasizing the rise of high-net-worth individuals. He explores the intricacies of deal structuring, CEO expectations, and the importance of trust between buyers and sellers to ensure successful transactions.
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Independent Sponsors
- Independent sponsors raise capital deal-by-deal, unlike traditional private equity funds.
- This allows wealthy individuals to invest directly in lower middle-market businesses.
Finding Investors
- Consider online platforms for finding potential investors in small businesses, similar to what Borgman does offline.
- Retail investors are gaining access to these types of alternative investments.
Democratization of Acquisitions
- The democratization of business acquisition dilutes the buyer pool.
- Less sophisticated investors are entering, changing the landscape of acquisitions.