Insights

How and when do independent sponsors get compensated for their work? There are three broad forms of compensation: (1) a closing fee, (2) the management fee, (3) and carried interest. The latter is the one that gets private equity professionals—independent or not—the most excited. But since it only comes at the end of the process, sponsors need to be compensated somehow in the interim. That’s why all three fees are so critical.

How do you go from paragliding to private equity employee, and then transition to being an independent sponsor who successfully acquires four businesses? Check out the most recent ASM Interview to learn more.

Why is an understanding of working capital essential to running a business? Use this working capital Excel template (download available) to better understand the impact working capital has on profitability and liquidity.

For those who want to buy a business, working with brokers is basically a given in today’s deal sourcing environment. Learn some best practices with this post.

What is the best way to source a company to buy? Explore the pros and cons of brokered vs. proprietary acquisitions in private equity.