The NPCA Update (1): Creating Solutions in Challenging Times for Small Business
- NP Capital Advisors Team
- May 13
- 6 min read
Updated: Jun 13
We advise companies between $1M and $50M in revenue.
The NP Capital difference combines consulting with transactional advisory to elevate outcomes. We unite real-world business-building experience, deep sector knowledge, and transactional acumen to deliver superior results.
Message From The Founder
It’s been a big season of growth for NP Capital Advisors, and this newsletter will be a small way for us to share some high-level industry insights.
We’ve built our firm around a clear mission: to support founders and small business owners with hands-on support, strategic advice, and creative dealmaking that actually moves the needle. In today’s environment, where capital is tight and headlines are shifting daily, that mission feels more relevant than ever.
This month’s headlines make it clear: from big players acquiring breakout brands to small businesses grappling with global headwinds, the ground is shifting underfoot. That’s why we’re committed to helping our clients with nimble thinking, deal creativity, and the kind of partnership that only comes from people who’ve built companies themselves.
Whether you’re preparing for growth or struggling to find the answer to cash flow constraints, we’re here to help you conquer what’s next. As always, please reach out if you think we can be of support.
Warmly,
Nick Desai
"The Fixer"
Founder, NP Capital Advisors
Equity for Services: Adapting to a Tight Capital Market
In today’s challenging fundraising environment, consumer goods companies are forging creative new paths to move business forward. One of the most salient trends we have observed is an increase in in-kind service arrangements in exchange for equity.
In favorable funding environments, businesses raise capital and use those funds to hire agencies, freelancers, and infrastructure providers. However, with investor dollars increasingly scarce and exits drying up, companies are looking for ways to conserve cash without halting momentum. Meanwhile, service providers are open to alternative compensation structures. The result? A growing wave of service-for-equity deals.
“It can be a win-win,” says Nick Desai, founder of NP Capital Advisors. “Emerging businesses need support to grow, and service providers have bandwidth. Equity trades cut out the middleman – cash – and create real alignment around a shared outcome.”
These arrangements span a range of functions – marketing, brokerage, and even manufacturing. While this model isn’t new, the volume and visibility of such trades have increased over the past year.
Why Now?
This shift isn’t just about interest rates, though they’re certainly higher than they have been since the global financial crisis (GFC). The bigger factor is a deeper pullback in investor appetite for consumer deals.
“Money is just tight in consumer right now,” says Nick. “Strategic buyers aren’t acquiring smaller companies like they used to. That’s removed a lot of the oxygen from the ecosystem. Until we see a change in capital markets, or a wave of successful exits, this might be the new normal.”
Even macro forces like tariffs are contributing to the uncertainty, adding one more layer of complexity to an already cautious investment climate.
What Comes Next?
So far, the consequences of this new model seem more promising than perilous. Service providers who take equity become more vested in the company's outcome, offering not just services but a strategic partnership. But it remains to be seen whether widespread dilution will pose a challenge for founders down the line.
As with all trends, time will tell. For now, equity-for-service deals are a strategic solution to a market in flux.
NP Capital Advisors Deal Highlights
NRS Acquires Rod's Western Palace
NRS (National Roper’s Supply), a family-owned company based in Decatur, Texas, has acquired Rod’s Western Palace, based in Columbus, Ohio. NRS is a multi-channel retailer of products for the western lifestyle, including saddles, tack, ropes, animal health supplies, boots, hats, and western apparel. NRS plans to continue the Rod’s tradition of supplying products for the western lifestyle to customers in the Midwest and beyond.
Foria Expands Holistic Wellness Offerings with Acquisition of Sleep-Focused Brand Ned
Foria, the pioneering natural wellness brand known for its innovative solutions for intimate health, acquired Ned, a leader in holistic remedies for sleep and stress. The acquisition enables Foria to offer its customers a wider range of products, including magnesium-infused blends and full-spectrum CBD tinctures and capsules.
Caesar’s Kitchen Navigates Restructuring and Distressed Sale
Caesar’s Kitchen, a prepared frozen meal and pasta brand and manufacturing company, executed a restructuring and distressed sale process to maximize recovery for shareholders, including negotiating with secured and personal guarantee creditors on behalf of its founder.
New Team Members
We’re thrilled to welcome Robert Chin and Sean Brennan as part of the NP Capital Advisors team!
Robert Chin
"The Cleaner"
Managing Director, Beverages
Robert Chin is an accomplished executive within the beverage industry. He has advised high-profile clients such as Mary J. Blige’s Sun Goddess Wines and Two Flags Vodka. Previously, he served as President of Combs Spirits, overseeing the growth of DeLeón Tequila and CIROC. His tenure at Aquilini Beverage Group saw him transform the business from a struggling operation into a top-performing wine portfolio with national distribution.
Sean Brennan
"The Diplomat"
Managing Director, Hospitality and Restaurant
Sean Brennan is a strategic executive with over 25 years of experience in business development, operations, and financial and human resource analysis, with a strong focus on QSR multi-unit expansion, franchising, scalable systems, and restaurant M&A deals. He has led growth initiatives across the restaurant, beverage, and CPG sectors, including founding and scaling internationally franchised brands and advising on acquisitions and market expansion for emerging and established brands alike.
Industry Headlines
Smallest Businesses Are Biggest Losers in Global Tariff War
Small and midsize companies account for $868 billion, or roughly one-third, of annual U.S. imports, according to the Census Bureau. And while they are dwarfed by global giants like Apple and Nike, these businesses also rely on overseas factories and Chinese goods that still carry steep tariffs.
Small businesses are at a disadvantage when seeking U.S. supplies in a time of turmoil. “The big companies just swoop in and buy all of it and that creates huge issues for us,” beverage business owner Janie Geyen said.
Sales are already slowing in response to tariff fears and economic uncertainty, some business owners say.
The Hershey Company Announces Intent to Acquire LesserEvil
The Hershey Company (NYSE: HSY) announced it has entered into a definitive agreement to acquire LesserEvil, maker of organic, delectable snacks that combine bold flavors with better-for-you ingredients.
"Investing in LesserEvil brings a multi-category, better-for-you snacks platform to extend our offerings into new categories and forms, reaching new consumers in more eating occasions," said Michele Buck, The Hershey Company President and Chief Executive Officer. "This high-growth brand not only complements our beloved confection and salty snack brands but also brings additional manufacturing capabilities and capacity to meet growing consumer and retailer needs."
The transaction remains subject to regulatory approval with anticipated closing later this year.
Crisp Acquires Atheon Analytics and ClearBox Analytics to Unlock Global Retail and CPG Data to Optimize Retail and Food Service Supply Chains
Crisp, the leading collaborative commerce platform for retail data, has announced the acquisition of two separate entities: Atheon Analytics (SKUtrak) and ClearBox Analytics (ClearView).
Both companies are based in the United Kingdom and connect supply chain data across major retail chains and their consumer packaged goods (CPG) suppliers.
Similar to Crisp, SKUtrak helps CPGs and other retailer vendors improve their business with actionable demand intelligence. ClearBox, founded by experts in retail and analytics, enhances visibility into grocery retail, food service, and supply chain performance for some of the largest CPG brands in the world.
Diageo and Main Street Advisors Announce Strategic Joint Venture
Diageo forms a strategic joint venture (JV) with Main Street Advisors to grow Cîroc Ultra-Premium Vodka in North America and Lobos 1707 Tequila worldwide.
Diageo exchanges majority ownership of Cîroc Ultra-Premium Vodka’s brand rights in North America for majority ownership interest in Lobos 1707
Nick Tran was appointed as President and Chief Marketing Officer for the JV.
About NP Capital Advisors
NP Capital Advisors is a next-generation investment bank and consulting firm founded by a team of experienced entrepreneurs, bankers, and attorneys who have built, operated, and sold successful businesses. The firm offers tailored solutions across M&A, restructuring and turnarounds, and strategy and growth consulting in a variety of sectors. With a performance-driven fee structure and a track record of delivering exceptional results, NP Capital Advisors is dedicated to helping founder-led and emerging growth businesses maximize value and overcome challenges.
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