The best way to add value in the straddle period between signing the LOI and closing the deal: build a strong Board.
You can't change yourself or the target company during the brief closing period, but you can elevate your pitch by compiling a fantastic board.
Most independent sponsor deals have 5 board members:
• Seller (1)
• Independent sponsor (1-2)
• Anchor investor and/or SBIC (1-2)
• 1-2 independent board members (smaller investors)
The 1-2 independent board members are handpicked because they bring industry expertise & experience, have "done it before", add credibility to the thesis, enhance comfort levels for other LPs, and excite the seller. Make sure to find good ones; they can make a big difference in attracting capital, closing the deal, and achieving a great outcome.
