In today’s market, private equity investors continue to confront the challenges of deploying capital. Platform investments are down, and while add-on acquisitions are on the rise, those deals also face financing complexities, with existing lenders taking a more conservative and pricing view to funding add-ons. 

At G2 Capital Advisors (G2), we go beyond sourcing highly qualified, thesis-aligned targets to identifying and addressing financing gaps early in the mergers and acquisitions (M&A) process. Here’s how our comprehensive process works — and why it’s different:

Industry expertise

Plumbed from decades of executive-level sector insight, our industry experience creates an exceptionally unique buy-side value proposition by: 

• Producing more relevant targets from networks built by our team of former operators 
• Driving increased engagement through shared vernacular and experience
• Optimizing client outcomes by applying an authentic understanding of market value drivers

The result? More targets, richer relationships, and an increased likelihood of getting the right deal done at the right price. 

By knowing an industry inside and out, G2 is as adept at finding targets as it is at finding lenders. We can maximize leverage by selecting the best-versed capital provider who is most capable of seeing the opportunity.

Capital markets advisory adaptability 

Today, financing a transaction is not a foregone conclusion — even for lower-risk add-on acquisitions. To avoid deal derailment, we assess capital needs early in every target conversation. If existing lenders present a roadblock, we will move quickly to engage our capital markets team to bridge the gap through new debt and equity sourcing services. In addition, we can deliver recapitalization advisory services to support restructuring the capital structure as a follow-on to new capital sourcing.

Our combined sector specificity and investment banking acumen enable us to run expedited processes to secure the best partner to finance future growth. We quickly explore a range of options, from securing senior debt to sub-debt or structured equity to finance accretive add-ons.

“We fill financing gaps in M&A deals quickly to maintain deal momentum and keep portcos [portfolio companies] on a path of value creation. This additional support is especially in demand now as sponsors push to get complex deals done before year-end.” – G2 Executive, Title 

Private equity partnership 

Our partnership approach drives long value through entering new markets or geographies, expanding capabilities, acquiring talent, and buying down entry multiples. Today, our speed in evaluating add-on opportunities, pivoting to alternative targets, and filling the financing gaps offer obvious support for achievement of end-of-year goals. We expect similar market dynamics in the first half of 2024 — and sponsors will increasingly move off the sidelines and into the game. G2 can help. 

Contact our team and learn more about how our approach could deliver value to your firm — now and in the new year. We look forward to connecting.