Our Program
A breakdown of our unique M&A approach, program structure, fees, and investment focus.
Program Details
1. Value Proposition
Regular M&A
- Slow
- Capital intensive
- Subject to hidden liabilities
- Hefty professional fees
Our M&A
- Fast
- 5-figure deal sizes
- Free of liabilities
- Negligible financial cost
The Differentiator
- Expanding the Sterling Way is capitalizing on the thousands of closures and failures happening every year.
- Our program is a co-investment where clients bear the financial risk while our companies take on the legal risk.
- Sophisticated legal and financial structures allow us to maximize efficiency.
2. Program Structure
- Onboarding
- Sourcing & Preparation
- Acquisition
- Post-merger integration
- Iterating steps 1-4 (3-5 years)
- Chain mergers
- Exit
3. Fee Structure
- Sourcing & preparation fee (borrowed on a per-deal basis)
- Equity carries: 25% ownership of targets with conversion option after a location threshold
4. Investment Focus
- Situations: Distressed FSRs and QSRs nearing insolvency
- Instruments: Secured debt, derivatives, and structured equity
- Target Entry: 10-15% of claim face value
- Performance Metrics: Haircut size, restructuring speed, tax savings captured, franchisability of the concept
- Jobs preserved: Employee count maintained or redeployed post-acquisition