Consistent, 20+ Year Track Record of Achieving Superior Close Rates
For the last two decades, we have achieved an extremely high close rate for our clients, which is believed to be in the top quartile of all investment banks. It takes a certain skill set, approach, and buyer network for an investment bank to be successful in the lower middle market, representing companies that have EBITDA of $1 million - $10 million. Our 20-year focus on specializing in this under served niche of the market has allowed us to establish the best practices necessary to drive our transaction close rate to superior levels, ultimately for the benefit of our clients.
Excellent Service/Results Reflected in High Repeat Clients/Referrals
Our reputation speaks for itself with a significant number of our clients being either repeat clients or referrals from prior clients.
M&A Principals Have Closed Hundreds of Transactions
The members of our Principal team have closed hundreds of transactions during the course of their career. Each of our clients receives the immediate benefit from the learning that has resulted from this critical mass of transaction volume.
M&A Principals with Blue-Chip, Wall Street Backgrounds
We strategically recruit and staff each of our client’s deal teams with two senior executives who have blue chip, Wall Street caliber backgrounds. This allows The Capital Corporation to bring to our select clients the level of expertise and best practices normally accessible only to Fortune 500 companies. By us recruiting former Wall Street investment bankers, we are able to offer our smaller clients all of the benefits of Wall Street (i.e. its best practices, its networks, its know-how, and its experience)…But without charging them Wall Street prices, because we simply don’t have the overhead that the Wall Street firms do. This strategy positions the relationship among our clients and us as a clear win-win.
Our M&A Principals Have First-Hand Owner/Operator Experience
In addition to Wall Street investment
banking backgrounds, one material differentiator that our team offers our
clients over other investment banks is that our Principals are or have been
owners/operators in over 30 different private companies across a broad range of
industries We are your entrepreneurial investment bank.
Our M&A Principals Have First-Hand Experience as Buyers
In order to maximize both value and terms for our clients when selling their business, we simply believe it is highly valuable to have a first-hand appreciation for what it is like to be a buyer. Accordingly, members of our Principal team – in their prior lives – have been buyers of over three dozen private companies, with these Principals having served as both private equity buyers as well as strategic buyers. This buyer background allows us to anticipate and therefore preempt how buyers will value, diligence, structure, and negotiate transactions with our clients. This former buyer background also allows our team of Principals to leverage a robust buyer network for our clients’ benefit.
We Offer a Broad Buyer Network
Having been former private equity buyers and strategic buyers, our Principal team offers an immediate network of buyers that it can leverage for its clients’ benefit. In addition to this immediate network, we have a database that includes – literally – thousands of potential strategic and financial buyers across multiple countries, a proprietary database of 19,000 contacts that can be leveraged via a referral program, a family office database of almost 700 potential buyers, a database of dozens of search fund buyers, a proprietary resource across a wide variety of industries that allows us to effectively navigate through a complex network of strategic buyers, [and an international network of over three dozen investment banks across 30+ countries]. In the cases where it makes sense for our clients to implement a “wide” go-to-market strategy, it would not be uncommon for us to have a prospective buyer list of over several hundred buyers in more than a handful of countries.
Leverage Today’s Most Advanced Technology
We have invested in and currently leverage today’s latest technology for the benefit of our clients, including secure online datarooms, cloud-based databases, advanced CRM systems, video skype conference calls, use of social networks such as Linkedin, etc. This use of technology helps streamline communication, maintain confidentiality, and make the entire M&A process more scalable.
Having Debt Expertise In-House Benefits Clients
Given today’s challenging and constantly evolving lender universe, it has become more and more important to be able to successfully access to debt markets in order to help close transactions for our clients. For that purpose, we have a senior debt specialist in-house that has worked on 200+ lending transactions and is well positioned to add value on both sellside and buyside transactions. In the circumstance where a buyer is having trouble secure the necessary financing to acquire a client of ours, we are in a quick strike position where we can help facilitate the closing of a transaction.
Offer Industry Expertise Across 40 Markets
We have a proprietary ability to offer industry expertise across 40 industries and sectors . Over the course of the last two decades, we have realized the importance of an investment bank’s ability to fully appreciate its clients’ businesses, end markets, customer dynamics, etc. This competitive advantage of ours of having an ability to offer our clients an intimate understanding of their business model, their markets, their end customers, and – often times – personal relationships with many of their prospective buyers, positions us to create significant, incremental value in any given transaction for the benefit of our clients.
Adoption of a Calculated and Customized Approach Leads to Higher Close Rates
Before we accept an engagement from a prospective client, we conduct the upfront diligence necessary to ensure that we have a high confidence level of being able to drive a transaction to successful close. This upfront homework on our part includes our team completing a custom, M&A Activity Report [LINK TO REQUEST M&A REPORT], that specifically outlines what each seller should expect to command from the market in terms of value, structure, and interest as well as various strategic considerations that can be factored into their thinking. This M&A Activity Report allows both our client and us to make an informed and calculated decision on if undertaking a sellside process is worth pursing at this time (or perhaps at a later time). In the cases where we collectively choose to move forward, we customize the process for each client, as no two deals are the same. This level of customization can include unique approaches in terms of our go-to-market strategy with the targeted buyers, how the Confidential Information Memorandum is authored/structured, how a deal is ultimately negotiated, etc. This calculated and customized approach are two of several reasons why we have been able to achieve, what we believe to be, a top quartile closing rate for our clients over the last 20+ years.
Adoption of Best Practices to Streamline the M&A Process
Even though each transaction will be customized to the client’s goals and situation, there are typically a shared set of best practices that we implement in order to streamline the process , minimize the level of disruption to our clients, and maximize the probability of a successful outcome for our clients. A sample of these best practices include any combination of Gantt Charts, Pre-Mortem Analyses, Blind Channel Checks, Mock Transaction (Pre- and Post-Tax), M&A Activity Report, online data rooms, access to our proprietary network of Industry Specialists, structured diligence phases, the full suite of marketing collateral creation, management presentations, etc. For the benefit of our clients, we apply the best practices from Wall Street to the smaller companies of the lower-middle market.
International, Cross-Border M&A Expertise
With today’s global economy becoming more and more intertwined, the level of cross-border M&A activity has dramatically increased from where it was a decade ago. Accordingly, in order for a client to take advantage of all of its strategic options, it is helpful to have an investment bank that has (i) international M&A experience and (ii) broad cross-border reach. Our team of Principals has experience marketing, negotiating, and closing cross-border M&A transactions and we have a global network of [over three dozen investment banks in 30+ countries that we can access for the benefit of our clients.