GSP Securities LLC takes the approach that a value-maximizing sell-side process is built on three pillars.
Know the Universe of Buyers
Each franchise is unique. So is each potential buyer. Certain buyers are motivated by the “pure economics” of a franchise. Others are motivated by a confluence of more intangible factors which transcend the pure economics of the franchise (e.g., asset diversification, lifestyle goals, complementary existing businesses, platform for growth for new/growing ventures, etc.). Understanding investors’ financial and non-financial motivating factors is critical to identifying qualified and committed buyers.
Sports is all we do. We are continuously meeting potential team investors and working to understand their investment criteria. Consequently, GSP has an extensive investor database that allows us to be extremely proactive when sale opportunities arise and lets us follow a confidential and highly targeted approach to identifying, pre-qualifying and moving forward with buyers to meet seller expectations quickly.
Get and Keep Buyers Engaged
In order to achieve the best possible price on any given transaction, real competition must be created – savvy investors know when they are the only game in town. While that seems obvious, potential investors in sports franchises are, by definition, sophisticated, wealthy, motivated, and high-energy people who at any given time have a wide array of competing interests and opportunities. Consequently, developing a sales process with multiple bidders, whether structured or informal, is extremely challenging given all of the distractions ultra-high-net-worth individuals face.
While “process” is important, it is secondary to building and nurturing relationships with potential investors. GSP is known for its ability to keep the widest universe of investors focused on the process, even in the face of known competition for a franchise and the demands on investors in running their other businesses.
Close the Deal
While the casual fan may see baseball, basketball, football, hockey and soccer as simple games, we know they are complex businesses – and complex businesses raise complex issues in a transaction environment. The road from handshake to execution of documents can be difficult to navigate. GSP has traveled this road many times and can anticipate the issues that can arise (e.g., league governance provisions, financing constraints, due diligence issues and purchase price adjustment negotiations). Our understanding of these issues is more than theoretical – we have unmatched deal experience working alongside lawyers, accountants, and other professionals to address and resolve these issues favorably for our clients.