Corporate Development Solutions

Utilizing the Universal Bank's extensive network and capabilities, the Corporate Development Solutions group assists clients with specialized services designed to help manage and grow their businesses. Click on the Case Studies below to learn more.

  • Debt Marketing Agent
  • Market & Industry Evaluation
  • Due Diligence Support
  • Business & Capital Planning
  • Sales & Marketing Development
  • Operations Improvement


Case Studies

  • Non-Recourse, Secured Stock Loan Allows Entrepreneur to Fund New Investments

    Client Background

    A successful entrepreneur whose net worth was mainly concentrated in a high-growth, logistics software API services company that he founded, was seeking to diversify his holdings in a non-dilutive manner that would allow him to maintain all of the shares he owned while making new investments. In addition to a personal loan, the entrepreneur was seeking a debt recapitalization solution for the company that would improve operating cash flows and allow the company to pursue growth initiatives.
     

    SOLUTIONS DELIVERED

    Investment Banking

    MetCap helped source, structure and close a non-recourse, stock secured loan for the entrepreneur against his private interests in the company to make investments and diversify his wealth into other asset classes, without the need to dilute his shares in the high-growth tech company. Further, the investor who made the loan has subsequently made a follow-on investment in the company, highlighting the ability of MetCap to find the right investor for the transaction.

    Metropolitan Capital Solutions

    MetCap’s corporate advisory arm helped identify a pivotal capital solution for the company which alleviated monthly cash flow pressures and allowed the company a longer runway before obtaining the next round of funding at a significantly higher valuation.

  • Entrepreneur Retains Full Ownership in Startup with Private Interest Stock Loan

    Client Background

    A high net worth individual was a co-founder of a very successful medical testing company. A few years after forming the company, a new opportunity within the industry presented itself. With the bulk of his net worth concentrated in the former company, he needed to find additional sources of capital to help fund the new venture. Reluctant to raise outside capital that would dilute his interest and future upside, the individual was seeking debt capital. However, traditional banks were unwilling to lend to the individual because of the illiquid nature of his net worth. His wealth manager, having worked with Metropolitan Capital before on similar matters, referred MetCap to the client.
     

    SOLUTIONS DELIVERED

    Commercial Banking

    MetCap was able to underwrite a loan using the entrepreneur’s interest in his other venture as collateral along with a personal guarantee. Along with a loan, the new company has a formal deposit relationship with MetCap.

    Private Banking

    In addition to commercial banking, the individual holds personal deposits with the bank.

    Metropolitan Capital Solutions

    Leveraging the Universal Banking suite of services, MetCap has been engaged by the new company to help raise growth capital.

  • Private Equity Investors Obtain Bridge Loan Collateralized by Future Carried Interest Disbursements to Fund New Investments

    Client Background

    Two seasoned private equity investors were seeking capital to help fund new investments. Not wanting to prematurely sell their existing interests in previous investments or liquidate their holdings elsewhere to finance the transactions, the investors asked their investment banker at Goldman Sachs who might help them in obtaining financing. Having successfully assisted many clients of Goldman Sachs in the past, the investment banker was confident in Metropolitan Capital’s ability to help the two investors and facilitated an introduction.
     

    SOLUTIONS DELIVERED

    Metropolitan Capital Solutions

    MetCap was able to source and analyze multiple term sheets for the investors. MetCap helped select and structure an optimal arrangement with a lender that utilized the future carried interest disbursements of the investors as collateral without them having to dilute or liquidate their existing portfolio and provided a non-recourse bridge loan that was sufficient to fund new transactions. Further, the investors appreciated MetCap’s assistance and expertise which allowed them to focus their attention on the new investments while MetCap simultaneously worked to secure the funding.

  • MetCap Network and Expertise Helps High Net Worth Individual Save More Than $1.2MM in Fees and Interest in Stock Option Exercise

    Client Background

    A former employee of a large payment processing company was seeking capital to exercise his stock options in the company. The individual had received two term sheets with lenders, however, was unsure if the terms were competitive with the current market. The individual’s wealth manager referred Metropolitan Capital to his client to help advise and assist the client with navigating the process and structuring the best terms.
     

    SOLUTIONS DELIVERED

    Metropolitan Capital Solutions

    MetCap was able to find a new lender who offered significantly better terms and fees, ultimately saving the client over $1.2 million in interest and fees. Additionally, MetCap was able to guide the client through the process from start to finish, providing peace of mind and clarity during a substantial liquidity event.

  • 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.

  • 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.

The above services are offered through Metropolitan Capital Solutions, LLC (“MCS”).