Historically, special situations and distress have been a buyer’s market, with purchasers inheriting the majority of value in a transaction. Thus, in the context of underperformance, sell-side engagements have been marginal at best.
More sell-side value.
Brock and Grey, working in strategic alliance with sell-side intermediaries, is fundamentally re-balancing this value exchange. It starts with our sponsors’ very different investment strategy, which results in far more value for sellers and their sell-side intermediaries.
By definition, an investment in distress is an investment in the resolution of liabilities and in the relaunch of the business, in order to capture underlying enterprise value. The historic problem for sellers (and sell-side intermediaries) is that this process has traditionally been investor-led, leaving sellers on the sidelines and only marginal opportunities for sell-side intermediaries.
Investing in sellers, not just assets.
Our network’s unique approach invests heavily in current owner-operators, not just their assets, resulting in truly successful exits and meaningful sell-side engagements. Rather than being incentivized by simply inheriting assets at the lowest possible cost, our sponsors invest in the skill-sets of sellers and key employees, staking them in the restructuring and relaunch of underlying business value. As an investment strategy, our buyers are freed from the limitation of having to operate themselves or sourcing new operators, which facilitates acquisitions on scale.
Because the buy-side is incentivized differently, our transactions yield far more value for sellers and intermediaries in distressed or special situations- creating successful exits for owners, meaningful commissionable events for sell-side intermediaries, and a clean listing when the relaunched business is brought back to market without distress.
Buyer and seller incentives align differently: The ‘reorganizational exit’.
To facilitate our network’s investment strategy, Brock and Grey works in strategic alliance with sell-side intermediaries to structure ‘reorganizational exits’ that create far more sell-side value than traditional ‘sale/exits’ in underperforming situations. A ‘reorganizational exit’ meaningfully stakes the sell-side in the restructuring and relaunch of the business, reflecting the intrinsic value of your seller, not just their assets.
