Pushed Out by Anchor Investor
Neal recounts the moment his anchor investor retraded him at the five-yard line of a $7m EBITDA acquisition. The terms were gutted, leaving only a 2% closing fee. No management fee, no carry, no long-term involvement. The shock was real. But instead of burning the bridge, entering litigation, or walking away empty-handed, Neal took the deal. It gave him a track record, credibility, and sufficient capital to keep searching.
To avoid being blindsided again, Neal now builds leverage by running parallel investor processes. He secures signed term sheets before disclosing capital partners to sellers. He demands IC approval before advancing diligence. He calls other sponsors for references and expects the same from capital providers. Trust is essential, but so is structure.
Forged Capital screens 5,000 deals annually. 90% are discarded immediately, 50 IOIs are submitted per year, and 5 LOIs lead to 1-2 closings. They target "B assets," companies with gaps they can fix. Operational value creation, not leverage, drives returns.
Neal Doshi is part of the Independent Sponsor Alliance, a peer group. Quarterly Zoom meetings have helped him vet capital partners, pressure-test theses, and swap notes on industry trends. It reflects the deeper benefit of the independent sponsor model: flexibility, collaboration, and autonomy.
Check today’s new episode of the Minds Capital Podcast.
Keep reading
33 PortCos in 6 Years
Robert Graham, based in Dallas, graduated from HBS in 2018 and acquired his first company the year after as a self-funded searcher using SBA7a financing. After a turbulent start, this healthcare platform exploded to $30m of EBITDA and now "hemorrhages cash." That early breakout win became the engine behind SIG Partners, recently named a Top 20 independent sponsor by Axial, which has since assembled an extraordinary 33 platforms in just 6 years.
Platform + Key Competitor = Multiple Expansion
Willistown Capital's journey offers a window into how independent sponsors can execute complex, high-stakes transactions with institutional precision. William Boffa and Darren Fultz walk through the anatomy of their award-winning related acquisitions of Quiltcraft and Fabtex. From stakeholder alignment to >$1m of legal fees, they detail their journey through complexity & risk to the promised land of "zone skipping."
Buy Small ($1m EBITDA at 4x), Keep Winning
Ryan Sullivan's fully-baked & winning concept at North Park Group: buy $1m EBITDA firms at 4x, add the real estate, finance half with SBA debt, and never sell. Voila, today they have 5 operating companies, 6 acquisitions, 25% annual returns, and an investor waitlist.
