Equity Financing Can Help Accelerate Your Suppliers’ Growth

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Merchants: Equity financing can help accelerate your suppliers’ growth Equity financing definition • The sale of an ownership interest to raise funds for business purposes Equity can help supplier improve and grow Supplier quotes • Equity partners bring new capabilities (e.g., industry • "With private equity investment we gained industry connections, content expertise, process help) experience, help professionalizing, and a CEO sparring • Equity is more flexible than debt enabling companies to partner to help us grow" invest in growth as they see fit • "Non-monetary benefits are greater than capital benefit" • Equity can help fund long development time horizon for new • "PE support helped us grow 35% faster than planned through products or innovations capacity expansion and new customer introductions" Investors (in order of relevance for suppliers) • Private equity, Angel/Individual, Venture capital, Family offices, SBA1 Common equity myths Myth Reality • Equity is only for distressed companies • Many companies use equity to grow • PE firms always make controlling interest investments • Opportunities exist for minority investment • Investors just want to cut costs • Investors balance efficiencies & increases to support ELDC How suppliers can find an equity partner 1. Small Business Administration has a program for Small Business Investment Companies (SBICs) Source:• Ask Boston existing Consulting advisors Group (e.g., accountants, lawyers, consultants, debt financers) or peers for recommendations • Attend an equity networking event (e.g., local Association for Corporate Growth (ACG) chapter events) • Search online for investors (findthebest.com search engine helps filter, first search for type of investor e.g., private equity, then site enables filtering for investors based on characteristics including industry and size of investment) • Hire an investment banker or intermediary to help you navigate the process • Check out SBA resources (http://www.sbia.org/?page=sbic_financing) for step by step guidance on securing equity 1. Small Business Administration has a program for Small Business Investment Companies (SBICs) Source: Boston Consulting Group U.S. Manufacturing Confidential – Do Not Distribute.

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MICHAEL MORTELL Senior Managing Director Digital Media; Mergers & Acquisitions; Private Equity; Restructuring; Strategy 485 Lexington Avenue, 10th Michael Mortell is a Senior Managing Director at Ankura Capital Advisors, Floor New York, NY 10017 based in New York. Mike has extensive experience advising entrepreneurs +1.212.818.1555 Main and companies on mergers, acquisitions, strategic and business planning, +1.646.291.8597 Direct restructuring, and capital raising alternatives. Over a career in investment banking and consulting, he has cultivated expertise in the digital media and [email protected] private equity industries and developed strong relationships within them. Mike has a proven record of identifying young, high-potential companies, and providing the strategical and tactical counsel that supports growth EDUCATION objectives and positions them for future success. He also has advised MBA, University or Chicago owners/shareholders of established companies on strategic growth and Booth School of Business liquidity options. In addition to his work in digital media, he has significant BS, Finance Fairfield University experience in the e-commerce, software, retail, specialty manufacturing, and business services sectors. Prior to joining Ankura, Mike was a senior advisor at GP Bullhound, a CERTIFICATIONS boutique investment bank that acquired AdMedia Partners, the M&A FINRA Series 24, 7, 79 and 63 advisory firm where he served as a managing director. He previously ran the Private Equity Financing Group of Prudential Securities and worked for Zolfo, Cooper and Company where he was a consultant to troubled companies and their creditors. Mike also co-founded and managed Grandwood Capital LLC, an investment bank and advisory firm focused on middle-market companies.
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