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The Role of an Independent Sponsor
In this episode, we’re taking a look at a unique independent sponsor’s M&A strategies. My guest Bakari Akil is the founder of Graves Hall Capital, which seeks to buy and run businesses where owners and founders are seeking an exit. Bakari will share his M&A journey and advice for enticing a seller to do business with you. He’ll also cover: Why he believes buying companies is the best wealth building strategy What types of companies he’s looking for The role of reps & warranties insurance And more Mentioned in this episode: http://graveshallcap.com https://linkedin.com/in/bakariakil Transcript Patrick Stroth: Hello there. I’m Patrick Stroth, trusted authority in executive and transactional liability and founder of Rubicon M&A Insurance Services, now a proud member of the Liberty Company Insurance Broker Network. Welcome to M&A Masters, where I speak with the leading experts in mergers and acquisitions, and we’re all about one thing here. That’s a clean exit for owners, founders and their investors. Today I’m joined by Bakari Akil, founder of Graves Hall Capital. Based in New York, Graves Hall seeks to buy and run businesses, where owners and founders are seeking an exit. And we recently had an article from Bloomberg about search funders. There’s been information about other types of buyers such as independent sponsors, so I thought it’d be great and ideal to have Bakari, who is out there in the market right now, come and join us. Bakari, great to have you. Thanks for joining us today. Bakari Akil: Thank you very much, Patrick. Patrick: Now, before we get into Graves Hall, let’s talk about you. What brought you to this point in your career? Bakari: Sure. So I am the founder of Graves Hall Capital. Graves Hall is effectively an independent sponsor. We bought companies, we’ve done a couple of
D&O Liability Coverage Versus TLPE Insurance
D&O Liability Coverage Versus TLPE Insurance As I’ve written in the past, there are many founders of small- and medium-sized, privately held companies that simply don’t see the need for Directors & Officers (D&O) liability coverage. I won’t argue the merits of D&O insurance here. But, the reality is that when those owners try to sell their companies, that lack of coverage will come back to bite them.
The Biggest Impact of TLPE Insurance
The Biggest Impact of TLPE Insurance Transactions—the major decisions in the life of a business—impact both Sellers and Buyers. In a standard transaction, a Buyer will request that money from the purchase price be held in escrow. While I’ll admit there is a strong argument justifying these requests, there are viable alternatives.
Four Reasons to Use TLPE in SME M&A Deals
Four Reasons to Use TLPE in SME M&A Deals If you’re a sell-side advisor… investment banker, business broker, or an insurance agent… I have some news for you: If you aren’t at least discussing Transaction Liability Private Enterprise(TLPE) as an option to cover an M&A transaction, you are doing your SME clients a serious disservice.
A New Trend in M&A Insurance You Should Know About
In this era of sky-high valuations, PE firms seeking inorganic growth are increasingly looking at an alternative to acquiring fully built out platform companies. The strategy is to buy a platform that is not fully built out yet and available for a lower price and then “add on” other small companies. Not only are these acquisitions cheaper, but they are also easier to transition into the platform, which helps accelerate growth. This trend has also led to increasing adoption of two unique M&A insurance products that have been available for a couple of years but were not widely used until
New Targets for Ransomware Attacks – and How to Protect Yourself
The dream of every startup is to one day be acquired by a PE or VC firm or a Strategic Buyer. All the hard work and dedication finally pays off. And it’s only natural that these firms will announce the happy news to the world with a press release whether it’s a merger or announcement of a successful round of fundraising. Unfortunately, these days such announcements have put a target squarely on the backs of soon-to-be or newly acquired companies in all sorts of industries, from manufacturing to tech to healthcare to consumer-oriented businesses. These days, of course, every company
Cyber Security & Privacy Liability
Cyber crime is a major problem in the United States and around the world. It seems every day there is another news story about hackers and other criminals who have been able to breach company networks and get their hands on confidential data…or take companies hostage by locking them out of their networks or even shutting down a business’s operations until a ransom is paid. Remember, the Colonial Pipeline ransomware attack in May 2021? Cyber criminals managed to access computerized equipment that operates the pipeline, which runs from Texas and New York and delivers about 36 billion gallons per year
Material Contracts and Representations and Warranty Insurance
As Representations and Warranty insurance matures as a product and comes into wider use, Underwriters are taking lessons learned from past claims to equip future policyholders on ways to either identify pre-closing trouble-spots, or to mitigate their impact post-closing. They’re looking for patterns or “danger areas” where breaches are more likely to occur. Many such breaches result in losses far exceeding the R&W policy limit. So, it’s essential that Buyers take action so that they can catch any issues before a deal closes. That way they can address the issue with the Seller. (Read to the end of this article for
Staging Your Deal for a Better Rep and Warranty Experience
When you sell your house, one of the best ways to get noticed by potential buyers is to “stage” the home. This is interior design. Nice furniture and décor. No personal items or family photos. No family photos on the wall. No crazy paint schemes on the wall. Some sellers even hire professional decorators to arrange their homes in this way. Similarly, in the M&A world, if you want to use Representations and Warranty (R&W) insurance, you should be prepared to stage your deal to make it more appealing to Underwriters who would be approving and writing your policy. Doing