Investment Bank

With each client engagement we maintain rigorous and disciplined adherence to pre-determined end goals, delivering expert results throughout a vague, fragmented and difficult process.
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Maximizing transaction value through expert advisory.

Our expert advisors establish an executable plan for healthy company growth and value-added exit from our clients’ legacy businesses. In addition, our advisement network can help assist you in a myriad of business structure, planning, investment, tax and exit strategies to help give you the maximum ROI.

When it comes to region and market-specific deals, our team works with a handful of knowledgeable and professional partners. Our partnerships have been forged through years of providing expert M&A, private equity and recapitalization advisory services to clients across the country. 

Our clients have often spent years working to establish businesses which gave them the financial freedom to fulfill their largest aspirations. However, in many instances at the time when many managers wish to retire, they feel the business may need them more than ever. Similarly, there are also vibrant entrepreneurs who may be seeking funding to establish a business plan and niche for growth in unrecognized areas of opportunity. Deal Capital helps to work with the budding entrepreneur and the seasoned veteran, even bringing them together with investment opportunities and strategies that maximize growth.

 

Analyst & Associate Positions

We attend select schools to recruit on-campus, holding interviews for analyst and associate positions.Analysts are considered part of a long term career with the firm and as such large investments are made to develop our junior team. To be considered candidates must be graduating MBA students or have over three years of investment banking experience.

 

Internship

Our career agent development program will help you develop as a financial professional, with schools and seminars to further develop your potential. In addition to a strong compensation program.

If you would like to junior in a summer internship you can check with us in the late fall for placement in the following summer’s program. If you do not attend one of the above listed schools please follow the link below to apply for our open positions. GPA and SAT scores must be included on your resume.

Experienced advisors are also welcome. We are constantly looking for some of the best talent available. Please contact us today regarding your desire to get into investment banking.

  

A Strategic Process

The path to selling your business is often a strategic one. Of necessity, it involves working with various stakeholders to ensure the business is actually ready to be sold. In most cases the sale of a business is and should be a well-planned process. It not only involves M&A advisors, broker dealers and real estate brokers, but should also include the assistance of insurance reps, attorneys and tax and estate planners.

In essence, the sale of your business is a process steeped in principles of project management. To succeed, start early in the process, speaking with all key players including your investment banker. By starting the process early, it can mean preparedness avails itself in the event that a buyer comes early, but it can also mean you get your timing right when the general market forces provide a perfect storm.

Most importantly, there are certain key components of doing a deal that will need buttoned-up before you begin the process. Buyout-ready life insurance and estate plan issues are all components that should be visited early and often.

 

The Offering Memo

Your Confidential Offering Memo is the business plan of your business exit. It is what investors in your company as a “going concern” will want to see before they will even consider investing. It provides all the relevant operational, marketing and financial information about your business. It will include information on assets, including tangible and intangible property, liabilities, cash flows, major customers, key employees, general market analysis and trends and reasons for selling.

Drafting an offering memo early is also helpful because in the end, it may just require a few simple tweaks so as to conform to the changes in the business. When it comes time to prepare to sell your business by drafting a marketing memorandum, give us a call.

 

Finding & Courting Buyers

Most business buyers can be boiled-down into two distinct groups: financial buyers and strategic buyers. Financial buyers only look at the numbers. They’re strictly interested in returns (ROE, ROA, etc.). The only thing they want is for the money they infuse to bring back more money. They’re not as concerned with strategic matters.

A strategic buyer on the other hand has a greater motivation to buy the business. Most strategic buyers are willing to pay more, especially if key synergies exist between the seller and the acquirer.

 

Maximizing the Payout

For the less-than-savvy selling entrepreneur, there tends to be a number they would like to receive for selling their business. Unfortunately, there is no way to reverse engineer the value of a business from what you want to what you are able to receive unless of course you drastically cut costs or increase sales and marketing efforts to boost top-line revenues.

The best way to maximize your payout is to find a strategic buyer will to pay a higher multiple of earnings. The second best way is to work at legitimately growing your company via sales and marketing. A true business consultant can help with both.

 

Our Unique Advantage

When it comes time to divest your company interests, giving you the freedom to move to other areas, there are countless details inherent in the process that require the help of knowledgeable professionals. Starting the process can be time consuming and drawn-out, especially if you are looking to receive the highest return possible. Many privately-held companies are attached to the owners and founders by a special bond. Those who have helped to make them what they are today sometimes don’t initially realize the emotional aspects of completing the deal. While the process of handing over the business to the succeeding generation can be a difficult and often emotional challenge, we work with you to ensure you are able to make the transition as smooth as possible.

In addition, there are often aspects to selling your business which could make the deal a bit more complicated. For instance, sometimes the deal could involve real estate or another type of account.

We are an investment banking firm focused on providing strategic advice and transaction services to owners of middle-market companies. Whether you are looking for outstanding results in a succession planning exit, or finding strategic buyers for healthy, rapidly growing companies seeking a partner to provide scale, we find that right buyer.

We craft the presentation materials that capture the value of the asset you have grown. We uncover and communicate the value creation potential for the strategic buyers we target. Then we get back to the basics. We target a large number of of strategic and financial buyers. As the process unfolds, we get several buyers to compete. This buyer competition produces the highest and best value the market has to offer.

Click here to visit the InvestmentBank Portal.

 

 

Maximizing transaction value through expert advisory.

Our expert advisors establish an executable plan for healthy company growth and value-added exit from our clients’ legacy businesses. In addition, our advisement network can help assist you in a myriad of business structure, planning, investment, tax and exit strategies to help give you the maximum ROI.

When it comes to region and market-specific deals, our team works with a handful of knowledgeable and professional partners. Our partnerships have been forged through years of providing expert M&A, private equity and recapitalization advisory services to clients across the country. 

Our clients have often spent years working to establish businesses which gave them the financial freedom to fulfill their largest aspirations. However, in many instances at the time when many managers wish to retire, they feel the business may need them more than ever. Similarly, there are also vibrant entrepreneurs who may be seeking funding to establish a business plan and niche for growth in unrecognized areas of opportunity. Deal Capital helps to work with the budding entrepreneur and the seasoned veteran, even bringing them together with investment opportunities and strategies that maximize growth.

 

Analyst & Associate Positions

We attend select schools to recruit on-campus, holding interviews for analyst and associate positions.Analysts are considered part of a long term career with the firm and as such large investments are made to develop our junior team. To be considered candidates must be graduating MBA students or have over three years of investment banking experience.

 

Internship

Our career agent development program will help you develop as a financial professional, with schools and seminars to further develop your potential. In addition to a strong compensation program.

If you would like to junior in a summer internship you can check with us in the late fall for placement in the following summer’s program. If you do not attend one of the above listed schools please follow the link below to apply for our open positions. GPA and SAT scores must be included on your resume.

Experienced advisors are also welcome. We are constantly looking for some of the best talent available. Please contact us today regarding your desire to get into investment banking.

  

A Strategic Process

The path to selling your business is often a strategic one. Of necessity, it involves working with various stakeholders to ensure the business is actually ready to be sold. In most cases the sale of a business is and should be a well-planned process. It not only involves M&A advisors, broker dealers and real estate brokers, but should also include the assistance of insurance reps, attorneys and tax and estate planners.

In essence, the sale of your business is a process steeped in principles of project management. To succeed, start early in the process, speaking with all key players including your investment banker. By starting the process early, it can mean preparedness avails itself in the event that a buyer comes early, but it can also mean you get your timing right when the general market forces provide a perfect storm.

Most importantly, there are certain key components of doing a deal that will need buttoned-up before you begin the process. Buyout-ready life insurance and estate plan issues are all components that should be visited early and often.

 

The Offering Memo

Your Confidential Offering Memo is the business plan of your business exit. It is what investors in your company as a “going concern” will want to see before they will even consider investing. It provides all the relevant operational, marketing and financial information about your business. It will include information on assets, including tangible and intangible property, liabilities, cash flows, major customers, key employees, general market analysis and trends and reasons for selling.

Drafting an offering memo early is also helpful because in the end, it may just require a few simple tweaks so as to conform to the changes in the business. When it comes time to prepare to sell your business by drafting a marketing memorandum, give us a call.

 

Finding & Courting Buyers

Most business buyers can be boiled-down into two distinct groups: financial buyers and strategic buyers. Financial buyers only look at the numbers. They’re strictly interested in returns (ROE, ROA, etc.). The only thing they want is for the money they infuse to bring back more money. They’re not as concerned with strategic matters.

A strategic buyer on the other hand has a greater motivation to buy the business. Most strategic buyers are willing to pay more, especially if key synergies exist between the seller and the acquirer.

 

Maximizing the Payout

For the less-than-savvy selling entrepreneur, there tends to be a number they would like to receive for selling their business. Unfortunately, there is no way to reverse engineer the value of a business from what you want to what you are able to receive unless of course you drastically cut costs or increase sales and marketing efforts to boost top-line revenues.

The best way to maximize your payout is to find a strategic buyer will to pay a higher multiple of earnings. The second best way is to work at legitimately growing your company via sales and marketing. A true business consultant can help with both.

 

Our Unique Advantage

When it comes time to divest your company interests, giving you the freedom to move to other areas, there are countless details inherent in the process that require the help of knowledgeable professionals. Starting the process can be time consuming and drawn-out, especially if you are looking to receive the highest return possible. Many privately-held companies are attached to the owners and founders by a special bond. Those who have helped to make them what they are today sometimes don’t initially realize the emotional aspects of completing the deal. While the process of handing over the business to the succeeding generation can be a difficult and often emotional challenge, we work with you to ensure you are able to make the transition as smooth as possible.

In addition, there are often aspects to selling your business which could make the deal a bit more complicated. For instance, sometimes the deal could involve real estate or another type of account.

We are an investment banking firm focused on providing strategic advice and transaction services to owners of middle-market companies. Whether you are looking for outstanding results in a succession planning exit, or finding strategic buyers for healthy, rapidly growing companies seeking a partner to provide scale, we find that right buyer.

We craft the presentation materials that capture the value of the asset you have grown. We uncover and communicate the value creation potential for the strategic buyers we target. Then we get back to the basics. We target a large number of of strategic and financial buyers. As the process unfolds, we get several buyers to compete. This buyer competition produces the highest and best value the market has to offer.

Click here to visit the InvestmentBank Portal.

 

An Investment Banker’s Worst Nightmare

 

More companies are deciding to do without bankers when they make acquisitions

 

 

When Comcast agreed to buy DreamWorks Animation SKG for $3.8 billion last month, the cable company handled the negotiations itself. PHOTO: KEN GABRIELSEN/ASSOCIATED PRESS

 

By 

DANA MATTIOLI

Updated May 10, 2016 4:47 p.m. ET

51 COMMENTS

 

One day late last month, two big companies announced takeovers that had something in common: Neither Comcast Corp. nor AbbVieInc. used a banker.

 

Comcast and AbbVie, both giants in corporate America, aren’t alone. More companies are deciding to do without bankers when they make acquisitions.

 

In 2015, the buyers in public-company deals valued at more than $1 billion didn’t use financial advisers in 70 instances, or 26% of the time, according to Dealogic. That is the second-highest total on record and far surpasses the 25 cases, or 13% share, in 2014.

 

In 2016, there have already been 23 examples, or 27% of deals in question. While merger volume has been surging, the rise in deals without a bank since 2014 is more pronounced.

 


TODAY’S HIGHLIGHTS


 

 

That is bad news for Wall Street firms, which bring in enormous fees—sometimes measuring in the tens or even hundreds of millions of dollars—from takeover advice. The timing could hardly be worse for big banks as they lose market share to smaller upstarts known as boutiques and grapple with new regulations and low interest rates.

 

Boutique firms such as Moelis & Co. and Perella Weinberg Partners LP have steadily gained ground on their larger rivals in recent years, with the group’s market share based on fees recently at nearly 18% so far in 2016, more than double where it stood in 2008, according to Dealogic.

 

Corporate executives attribute the rise to a desire to keep transactions confidential, move quickly when needed and, of course, save money. There is also a view by some that all bankers don’t always have their best interests at heart.

 

In his 2014 letter to shareholders of Berkshire Hathaway Inc.,Warren Buffett captured that view. He derided investment bankers, who, “being paid as they are for action, constantly urge acquirers to pay 20% to 50% premiums over market price for publicly-held businesses.” He went on: “A few years later, bankers—bearing straight faces—again appear and just as earnestly urge spinning off the earlier acquisition in order to ‘unlock shareholder value.’”

 

What has changed inside companies?

 

Some of them now have large internal teams capable of developing deal strategy, building out financial models and executing transactions without bankers’ help.

 

The trend has accelerated as companies again embrace M&A after years of sluggish activity. Meanwhile, restrictions on compensation and other regulations at big banks have created a steady supply of seasoned advisers willing to go in-house—even if the pay is lower.

 

Making such a move generally involves taking a pay cut. Senior internal deal makers at big companies often rake in more than $1 million a year, and such roles can be stepping stones to bigger jobs like finance chief. But in a good year, a senior M&A banker can make several million dollars.

 

In one previously unreported recent move,  Goldman Sachs GroupInc. media banker Guy Nachtomi left to join Activision Blizzard Inc. as chief strategy officer, people familiar with the matter said.

 

 

Kenneth "Ken" Moelis, chief executive of Moelis & Co., at the World Economic Forum in Davos, Switzerland in January. Boutique firms have gained ground on their larger rivals in recent years. PHOTO: BLOOMBERG NEWS

 

Banks haven’t disappeared completely, of course.

 

Big Wall Street firms have armies of advisers with wide-ranging expertise and access to valuable information. Having bankers can also inoculate deals against legal challenges if they are botched or the price is questioned. And companies often need to borrow for takeovers, which frequently goes hand in hand with advice.

 

It is especially difficult for a company on the sell side of a transaction to go it alone, deal makers say. Coordinating a multilayered auction without a banker, for example, would be challenging and expose the company to legal risk.

 

None of that deterred Comcast or AbbVie, both of which recently hired ex-bankers.

 

Comcast brought on Bob Eatroff from Morgan Stanley as executive vice president of global corporate development and strategy.

 

When Comcast agreed to buy DreamWorks Animation SKG for $3.8 billion last month, the cable company handled the negotiations itself in part because it needed to move quickly, said people familiar with the matter. Over the course of two weeks, Comcast’s deal team and executives including Chief Financial Officer Mike Cavanagh—a former banker—hammered out an agreement with the film studio, the people said.

 

Toward the end of the talks, Comcast’s board had a few phone calls with Paul Taubman of boutique PJT Partners Inc. to get an outside opinion, some of the people said.

 

PJT will likely get less than the typical outside-adviser fee on such a deal of as much as $20 million, one of the people said.

 

AbbVie also eschewed an investment bank when it agreed that April day to buy cancer-drug developer Stemcentrx for $5.8 billion.

 

The drug company in December hired J.P. Morgan Chase & Co.’sHenry Gosebruch to be chief strategy officer.

 

Within Mr. Gosebruch’s first two weeks on the job, AbbVie set up a meeting with Stemcentrx’s chief executive and indicated interest in buying the company, said a person familiar with the matter. By the time an auction for Stemcentrx later began, AbbVie had already done a substantial amount of work and didn’t see the need to bring in a bank, the person said.

 

As AbbVie finalized the purchase, it tapped Bank of America Corp.—for a fairness opinion, which typically costs much less.

 

Neither PJT nor Bank of America was credited for advising in press releases announcing the two deals.

 

Write to Dana Mattioli at dana.mattioli@wsj.com