What Makes Us Unique

Consistent, 20+ Year Track Record of 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 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 past 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, (Bank of America, Lehman Brothers, Merrill Lynch, etc.) . 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  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, networks, know-how, and 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.

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.

We believe that in order for our Principals to fully appreciate our clients’ businesses, in what is likely going to be our clients’ most important transaction in their professional careers, it is essential to have a first-hand appreciation for what it is like to be an owner/operator of a private business. These owner/operator experiences span everything from technology start-ups to Fortune 100 companies. By having this first-hand operator/entrepreneurial experience, our Principals have a deep and immediate appreciation for what it is like to operate, grow, and ultimately sell private businesses from an operator’s/owner’s perspective. This unique owner/operator perspective allows us to be extremely client-centric when it comes to maintaining confidentiality, streamlining the diligence process, creating the highest impact marketing collateral, coaching up management presentations, and negotiating deal terms associated with any transaction that is in the best interests of our clients.  Examples of industries/segments where our team can leverage its experiences from ownership positions, include:

  • Cable
  • Card Services
  • Construction Supplies
  • Consumer Finance
  • Distribution
  • Factoring
  • Finance
  • Healthcare Services
  • Healthcare Technology
  • Hospitality/Hotels
  • Insurance
  • Manufacturing
  • Marketing
  • Online Dating
  • Pharmaceutical Research
  • Real Estate
  • Restaurants
  • Retail / Fitness
  • Shipping
  • Social Networks
  • Software
  • Transportation
  • Wireless Technology

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 multi-billion dollar private equity buyers as well as Fortune 500 strategic buyers. For the benefit of our clients, 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.

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 are a member of the exclusive IMAP network that allows us to access buyer relationships from 40 investment banks around the world, 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. 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, targeted 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 makes the entire M&A process more scalable.

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 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 securing 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 segments. 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. 

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, that specifically outlines what each seller should expect to command from the market in terms of value, structure, and buyer 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 ability to specialize in 40 different industries/segments, structured diligence phases, the full suite of marketing collateral creation, management presentations, etc. For the benefit of our clients, we are in the unique position of being able to 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, closing cross-border M&A transactions, and access to an exclusive, global network of 40 investment banks via its inclusion within the IMAP network.