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
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
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.
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.
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
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.
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”).