Stephen Edwards, co-managing partner at Soho Square Capital, recently participated in a Real Deals expert roundtable, where he shared his insights on the most promising exit pathways and the strategies managers can use to position companies for the best possible sale.
“Our firm is uniquely positioned to execute structured minority transactions,” Edwards explained. In a market where there is often a disconnect between buyer and seller pricing, a well-structured minority deal can effectively bridge that gap.”
He continued, “Typically, we take an equity stake of 10-15%, alongside providing a mezzanine tranche that sits alongside senior debt. This structure allows us to carry less risk and be less sensitive to fluctuations in EBITDA. For company founders, this approach facilitates capital unlocking without the need to sell a large portion of equity – making it particularly advantageous in uncertain or turbulent market conditions.”
To explore these insights in greater detail, read the full article here.