Businesses
Metropolitan Capital is your committed partner from the beginning. As your business faces new opportunities and challenges, we are there to provide solutions that promote financial growth, diversify financial risk, guide investment and lending decisions, and harvest the value of your business through an exit strategy. Click on the Case Studies below to learn more.
Commercial Banking
Our objective is to provide clients with sound financial advice and create innovative solutions that meet the unique needs of each client. We take the time to understand the near-term needs and long-term vision the business and from there, develop credit and banking solutions that enable the business to grow and achieve its financial potential.
Investment Banking
Metropolitan Capital provides a range of corporate finance and advisory services to support the strategic and financing needs of businesses. Through a large network of capital providers and investors, we can arrange private equity, venture capital, senior debt and subordinated debt. We also advise businesses on buying and selling companies and guide clients through the intricacies of each transaction stage including: deal negotiations, due diligence support and transaction closing.
Corporate Development Solutions
Utilizing the Universal Bank's extensive network and capabilities, we assist clients with specialized services to help manage and grow their businesses. Leveraging a deep network of capital providers, we serve as a marketing agent for entities seeking access to creative debt solutions. We can also perform market and industry evaluations, provide due diligence support, assist with capital planning and enhance marketing and operations functions for small to medium-sized businesses (SMBs) whose time constraints and limited resources require sophisticated and customized solutions.
Case Studies
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Business Owner Taps MetCap to Help Buy Back Shares in Company
Client Background
A large, west coast-based RIA introduced MetCap to an e-commerce business owner who needed to satisfy a put obligation to buy back company shares from an investor. After successfully facilitating the transaction, MetCap was then asked to assist the founder in buying back of shares from other early-stage investors and employees of the company who were seeking liquidity for their shares.
SOLUTIONS DELIVERED
Commercial Banking
Originally introduced to the commercial banking team, the business owner utilized a debt facility from MetCap to satisfy a put obligation that required the business owner to buy back shares from a family office.
Investment Banking
MetCap sourced, structured and closed non-recourse, stock secured loans for each of the co-founders, allowing them to use the capital to buy back shares from willing early-stage investors and employees of the company. The buyback enabled the co-founders to regain more equity in the company at a favorable price, and ultimately maximize their upside potential in a promising, high-growth company.
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Innovative Loan Structure Allows Entrepreneur to Maintain Equity Control and Reach Inflection Point in Growth and Valuation
Client Background
Our client, a highly successful entrepreneur and investor, created an online incubator and angel investment platform. Using his experiences as an entrepreneur, he saw value in creating a platform that could connect startups with investors and as well as help entrepreneurs navigate the legal, tax and financial aspects of growing a business.
In order to scale the business, the company needed additional capital to fund the marketing and operations of the business as well as to build out the technology behind the platform. Because the majority of the founder’s assets were concentrated in numerous private investments and the complex nature of his personal balance sheet, banks were unwilling to lend the necessary growth capital without taking an equity stake in his company. Confident that the platform was close to reaching an inflection point in its growth and valuation, the founder was reluctant to raise outside equity that would dilute his upside potential.
Drawing on its ability to provide innovative lending solutions for business owners with non-traditional balance sheets and illiquid assets, Metropolitan Capital helped the company bridge the gap from pre-revenue to monetization without diluting the founder’s equity.
SOLUTIONS DELIVERED
Private Banking
Metcap created two separate loans, one guaranteed by the founder and the other guaranteed by the founder’s venture capital fund, totaling $11 million. Metcap’s willingness to serve as the secondary lender was critical to the success of the transaction.
Commercial Banking
Fourteen months after the initial loans were made, the platform has since transitioned to a subscription-based model and the valuation of the company has increased significantly. Because of the trusted relationship that has developed, Metropolitan Capital was asked to be the exclusive banking partner for the platform and is now serving the unique financial needs of the platform’s high-growth startups and their founders.
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Universal Banking Platform Supports Pet Boarding and Grooming Company’s Growth from $2 Million to $16 Million
Client Background
When Metcap was first introduced to a company that provides pet boarding and grooming services in 2010, the company had annual revenues of approximately $2 million and operated four locations. The company also had an ownership team with an ambitious vision for growing the operation, all with varying personal financial resources.
In order to achieve its vision, the company would need to form a banking relationship that could provide objective advice and creative solutions to address the challenges and opportunities that come with rapid expansion. On the outset, the company would need to raise additional debt and equity capital to fuel growth while accounting for shareholders’ varying financial position and goals. Additionally, the company would need to consider strategic acquisitions that could accelerate growth and expand the company’s footprint. MetCap’s complete suite of universal banking solutions proved to be an ideal fit for the company and its founders.
In growing from four locations and $2 million in revenue to 14 locations (with a 15th under construction) and more than $16 million in six years, the company has turned to Metropolitan Capital for strategic advice every step of the way.
SOLUTIONS DELIVERED
Private Banking
The relationship began with Metcap making a relatively small loan to the company’s CEO, so that he could contribute additional capital to the company and receive equity credit.
Investment Banking
As the business continued to grow, Metcap helped negotiate and complete an acquisition that tripled the size of its operations. Once the company reached a stage where it made sense to raise additional equity capital, the bank introduced its network of high net-worth individuals and family offices that were eager to invest in the growing company. Since then, Metcap has successfully completed a second equity capital raise for the company.
Commercial Banking
Metcap structured a loan facility that has grown from $300,000 to $4.5 million as the company’s capital needs increased. Additionally, the loan facility includes creative terms to account for shareholder’s varying contributions and allows individuals to invest with a personal guarantee rather than writing an additional check.
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Tailored Capital Solutions Provide Coffee Roaster and Retailer with Needed Flexibility to Grow and Expand Business
Client Background
Rich in flavor and history, Bridgeport Coffee Company has been serving exceptional roasted coffees in the iconic Bridgeport neighborhood located in the south side of Chicago since 2004. The company provides its fair trade and organic roasted coffees to the food & beverage and hospitality industries. Seeing an opportunity to serve its local community and provide an alternative to the mass market coffee shops, the company opened its first retail location in 2012.
Building on the success of the first location and its wholesale operations, the company sought to expand its footprint into other neighborhoods and retail channels. The company looked to its existing lender at the time to provide the additional growth capital necessary to build out the new stores and roastery. The company quickly discovered that its lender and most other banks were unwilling to lend to the client based on its size and the economic geography of its operations.
MetCap was very fortunate to be introduced to the owner of Bridgeport Coffee during this time. By taking the time to understand the company and its ownership, MetCap felt comfortable providing a tailored capital solution that was flexible enough to provide room to expand and grow the business.
Now operating 4 shop locations, a roastery and selling products in several retail channels throughout the country, Bridgeport Coffee has turned to MetCap for financing solutions and strategic advice every step of the way.
SOLUTIONS DELIVERED
Commercial Banking
Metcap initially refinanced the company’s existing line of credit, leveraging the personal guarantees of the founders as collateral for the loan. Since then, MetCap has provided loans for each of the 4 retail location expansions and continues to serve as a trusted advisor and partner to the company on various company matters.
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Unexpected Union Liability Poses Grave Threat to Company; MetCap’s National Footprint and Suite of Universal Banking Services Enable Company to Settle Liability and Plan for Future
Client Background
A fast growing construction services company in California experienced an almost detrimental event when a union audit uncovered a significant unfunded fringe benefit liability. The company’s capital was tied up in expanding promising lines of business. The founder, a hard-working entrepreneur, was faced with a difficult dilemma. He needed an immediate capital solution for the union liability that would also allow the company to continue operating. Further adding to the situation, a competitor in the industry was offering to buy the company from the owner at a low valuation. The transaction was not appealing to the owner; however, it would provide the necessary capital to satisfy the union liability and existing debtholders.
It was at this time that MetCap was introduced to the founder through a mutual relationship and became engaged as the company’s financial advisor. The MetCap team went to work to find a capital provider who could understand the story, handle challenging negotiations with the union, and be creative with the investment terms and structure.
The company also looked to MetCap to help evaluate the existing offer from the strategic player. Given the low valuation of the existing offer, MetCap encouraged the owner to pursue alternative options that maximized the value of the company and allowed the owner to participate in the upside potential of the company.
Because of the Universal Banking platform of MetCap, the owner was able to rely on MetCap to help solve for near term and long term challenges and allow the owner to focus on running the business and positioning himself and the company for success in the future.
SOLUTIONS DELIVERED
Corporate Development
MetCap, through its national footprint, was able to identify a lender in the Midwest who could understand the situation and solve for the immediate capital need. This lender was also successful in navigating union negotiations and worked hand in hand with MetCap and the company to create a flexible and timely investment structure.
Investment Banking
MetCap was engaged to run a process on behalf of the company to solicit the interest of majority and minority equity investors as well as debt providers for the company. The company received multiple indications of interests and MetCap assisted the client in analyzing the merits and ramifications of each option, ultimately selecting the option that best served the interests of both the founder and the company.
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Family-Owned Business Harnesses World-Class Banking Capabilities with Small Town Feel to Compete on a National Scale
Client Background
A third generation, family-owned construction services business successfully built a highly profitable and reputable enterprise over the years. As the business grew, the family found it increasingly difficult to compete against large conglomerates bidding for the same projects. Due to the specialized nature of its services and the significant upfront capital required to bid, staff and complete projects, the company couldn’t move as swiftly as its larger competitors on the bidding process and was at risk of losing market share.It was at this time that MetCap was introduced to the founder through a mutual relationship and became engaged as the company’s financial advisor. The MetCap team went to work to find a capital provider who could understand the story, handle challenging negotiations with the union, and be creative with the investment terms and structure.
To proactively address this risk, the company sought access to a credit facility that could be used to scale operations quickly but on an as-needed basis. Finding a willing lender, however, proved to be challenging due to the unpredictable revenue streams within the business model and the reluctance of the family members to personally guarantee the loan. In an effort to find a solution, the family’s wealth advisor referred the owners to Metropolitan Capital.
Metropolitan Capital’s experience as both a lender and financial advisor helped guide the family members through the selection, due diligence and closing of a credit facility that was tailored to the client’s needs and heritage.
SOLUTIONS DELIVERED
Corporate Development
Fully understanding the family’s ties and commitment to its community, Metropolitan Capital introduced the client to a large, regional financial institution with sophisticated, world-class banking capabilities which also had a physical presence in the company’s hometown. The financial institution structured a multi-million dollar credit facility that has enabled the company to bid, compete and execute on large-scale, national projects, ultimately helping a family-owned business continue its growth trajectory and legacy.