Investment Banking
Clients rely on us to provide advice and execution on a range of financial and strategic matters that arise during a business's life cycle. Our team of professionals are experienced in mergers and acquisitions, capital markets, financial restructuring and special situations and are dedicated to successfully achieving the strategic objectives and goals of each client. Click on the Case Studies below to learn more.
Mergers & Acquisitions
Metropolitan Capital represents companies, private equity firms and investors seeking to acquire or sell lower to middle market companies. Our team of experienced bankers understands the complexities and risks involved in buying or selling a company, and we work with our clients to control the process and mitigate potential risk by providing sound strategy and valuation guidance based on comprehensive research and years of experience.
Our sell side advisory services address a wide range of business succession and shareholder liquidity objectives. Metropolitan Capital applies a comprehensive approach to all client engagements. We guide our sell side clients through the intricacies of each transaction stage, from pre-deal strategic planning to identifying and negotiating with prospective suitors, due diligence support and closing.
Metropolitan Capital will approach targets and negotiate on our client's behalf. Additionally, we provide valuation guidance based on industry multiples, pro forma EBITDA adjustments, earning and cash flow assessments. We can also develop full operational metrics with key value driver analysis to assist in valuing and structuring the proposed transaction, and to support the due diligence process as required to ensure it is thoroughly and efficiently managed.
Corporate Finance
Metropolitan Capital specializes in the creation, marketing, and negotiation of private debt and equity placements for companies across a multitude of industries. With market experience placing private securities through all economic cycles, our team has developed the ability to discover and market value effectively. We maintain strong connections to private investors of all sizes and interests to serve as lead or follow-on investors for placements. Additionally, thanks in part to the unique company structure, Metropolitan Capital serves a diverse selection of commercial entities in both the debt and equity markets which serve as both potential investments and industry proxies. For all aspects of the capital structure, Metropolitan Capital's investment bankers have an understanding of the credit requirements, pricing policies and funding abilities of both debt and equity capital providers.
Leveraged Buyouts
Metropolitan Capital has the ability to leverage the financial strength of either debt or equity in any given transaction by sourcing capital from a wide number of investment partners or, when appropriate, use its own balance sheet to advise, market, facilitate and fund debt as well as equity, enabling maximum versatility in providing the optimal source for our clients.
Secondary Market Transactions
We actively match buyers and sellers of pre-ipo securities, private stocks, limited partnership interests and other illiquid securities through an independent platform.
Equity Restructuring & Special Situations
Metropolitan Capital provides objective, unbiased advice to clients facing challenging operational illiquidity situations. By bringing together the firm's expertise in mergers and acquisitions, debt finance, restructuring, and private equity, Metropolitan Capital works with clients to develop an optimal solution given a particular set of circumstances and desired outcomes.
Case Studies
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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.
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Business Owner Taps MetCap to Help Buy Back Shares in Company
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Secondary Market Transaction Led by MetCap Helps Entrepreneur Find Suitable Buyer for Equity Stake
Client Background
An entrepreneur successfully built and sold a cybersecurity firm to a large private equity-backed company, receiving both a portion of cash and equity in the acquirer as part of the transaction. Wanting to pursue other endeavors, the entrepreneur was interested in leveraging his sizeable equity stake to access liquidity. Complicating the matter, any potential sale of his equity stake would need to be approved by the company’s board, which was controlled by the private equity firm.
SOLUTIONS DELIVERED
Investment Banking
MetCap was referred to the entrepreneur by a mutual connection. After initial conversations, MetCap introduced the idea of a secondary market transaction to the entrepreneur. Utilizing MetCap’s network of investors and experience in secondary market transactions, a suitable buyer for the equity stake was sourced by MetCap. After undergoing a rigorous vetting process by the board, both the buyer and the transaction were approved. In addition, the compatible fit between the buyer and the company led to a follow-on investment in the company by the buyer. MetCap worked closely with all parties to move the transaction to a smooth close and achieve the client’s objectives.
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Universal Bank Offers Comprehensive Financial Solutions for Real Estate Investor’s Portfolio and Family Office
Client Background
Our client, a successful Real Estate investor, was first introduced to MetCap by a long-term relationship of the firm. As the individual continued to expand his real estate portfolio, the bulk of his wealth was concentrated in non-liquid real estate assets. To fund additional investments, our client needed a banking partner that could provide the necessary capital without the traditional upfront liquidity commitments and constraints. Further, as the wealth profile and financial needs of the client expanded rapidly, MetCap integrated scalable and tailored financial services that best served the clients evolving needs.
Initially providing a non-traditional debt facility for the client, the relationship seamlessly expanded to include a multitude of services for the client under the Universal Banking platform.
SOLUTIONS DELIVERED
Private Banking
MetCap arranged a non-traditional loan facility leveraging personal guarantees and the investor’s successful real estate investment track record that enabled the client to make additional real estate investment plays without prematurely selling or liquidating his existing portfolio.
Wealth Consulting
Due to a recent sizable liquidity event, the Client asked MetCap to find the right investment advisory team for his family office. MetCap arranged the due diligence and hiring process and is still currently retained by the Client to ensure the advisory team is working in concert together and in the Client’s best interests. MetCap has also assisted with the client’s philanthropic activities, helping to formulate the mission and vision of the client’s charitable activities.
Investment Banking
MetCap has completed several capital raise assignments for the client to date and provides on-going assistance and expertise in analyzing the financial merits of prospective private equity and venture capital investment opportunities as they arise.
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Entrepreneur Utilizes Full Suite of Universal Banking Services to Grow Business into $35 Million Enterprise
Client Background
Seeing an opportunity to leverage professional expertise and opportunistic timing, a successful M&A partner at a top law firm, began identifying distressed industrial and manufacturing companies to acquire following the financial downturn in 2008. However, the client initially faced capital challenges due to a negative personal net worth and needed to find a financial partner that was willing to provide the upfront capital. MetCap was able to envision the potential of the client’s entrepreneurial outlook and created an early stage line of credit in which the client could use to make the first investment.
Our client now owns four companies totaling $35MM in revenue and $10MM EBITDA and has looked to MetCap every step of the way for guidance and assistance in growing the platform.
SOLUTIONS DELIVERED
Commercial Banking
MetCap initially provided a line of credit that has now grown to $5.5MM and enabled the client to make each of the four acquisitions. MetCap continues to provide commercial banking needs for the companies and holding company.
Investment Banking
MetCap has completed two key capital raises for the client in which the proceeds from the capital raises were used to exchange the existing preferred equity for preferred debt. The client now owns 100% of the equity in the holding company.
Private Banking
The client is a private banking client and holds personal deposits for himself and family members.
MetCap Network
During each of the capital raises, MetCap was able to turn to its investor network and high networth client base to source the entirety of capital sought. The ability to offer clients proprietary and quality deal flow in addition to a full suite of financial services is a unique differentiator of Universal Banking for small and medium sized businesses.
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Cross-Collateralized Loans Fill Gap in Construction Financing for Bay Area Apartments
Client Background
In 2016, MetCap worked with a team of Bay Area investors to finance the acquisition of a bar in San Francisco. Five months later, the lead investor from that group came to MetCap with a new business opportunity and a new challenge.
The investor had teamed up with two other investors to purchase a vacant building in an emerging urban community in Oakland with the intent to renovate it into a 27-unit apartment complex. After purchasing the building and preparing the site for renovation, the lender would not recognize the tenant improvements when assessing the building’s collateral value. As a result, the maximum loan the bank was willing to underwrite was a $1 million short of completing the project.
The team of investors had limited options for securing the necessary funding. Raising outside equity capital was unappealing as it would dilute the investors’ shares and upside potential. Tapping their personal wealth proved challenging as the investors had outstanding margin loans against their most liquid personal assets. They needed to find a financial partner who understood the risks and could create an innovative lending solution that would enable the project to move forward.
Based on its deep experience working with real estate investors and other business owners, MetCap was able to design and underwrite a creative loan structure that allowed the investors to leverage their personal balance sheets and secure the funding needed to finish construction. With the funds from the secondary construction loan in place, the investors completed the project. MetCap has continued to work with the three investors, providing debt financing and creative financial solutions for other real estate-related projects.
SOLUTIONS DELIVERED
Private Banking
Using the securities held at the wirehouses as the primary source of collateral, MetCap created a cross-collateralized loan pool that provided the investor group a secondary construction loan. MetCap worked closely with the investors and wirehouses to create triparty agreements that repaid the margin loans and freed up the securities to be pledged as collateral.
Investment Banking
The team of investors came to MetCap again with a unique 49-unit real estate investment opportunity. MetCap was able to underwrite a loan quickly based on its long-standing relationship with the investors and allowed the investors to expedite the closing in lieu of traditional bank loan process. Additionally, the investors asked MetCap to find outside equity investors to participate in the transaction. MetCap was able to exclusively source the additional capital from its existing client network. The ability to quickly match sources and uses of capital within its network is a key component to MetCap’s value proposition.
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Digital Marketing CEO Capitalizes on Full Spectrum of Universal Banking Services to Diversify, Grow and Manage Net Worth
Client Background
Our client, the CEO of a digital marketing firm, co-founded the company in his late 20s and successfully grew the business into a multimillion dollar enterprise. The success of the company has created a broad set of challenges and opportunities for the CEO.
In addition to investing in the growth of the company, the CEO used the income to build a portfolio of public equity investments. He also invested in real estate, startups, and other small private investments across the country that were brought to him by friends and family. Evaluating the financial merits of these individual private investments became increasingly challenging for the CEO, whose expertise focused on marketing and business strategy. In addition to assistance in analyzing new opportunities that were brought to him, the CEO wanted to diversify his holdings by getting access to professionally-sourced private equity and real estate investments.
The large number of different private investments held by the CEO meant that he didn’t have visibility into his total net worth and monthly cash flows. This lack of visibility made it difficult for the CEO to build a comprehensive wealth management plan and understand how the various elements of his portfolio could be working together to achieve his longer-term goals.
Utilizing a number of services and capabilities offered through the Universal Banking platform, Metropolitan Capital assisted the client in diversifying his equity holdings and generating a clear picture of his consolidated cash flows and net worth.
SOLUTIONS DELIVERED
Private Banking
Metcap issued a $2 million line of credit for the CEO so that he could increase his investment size threshold and thereby generate greater returns as well as eliminate the need to liquidate his stock holdings to access funds.
Investment Banking
The CEO has access to Metcap’s proprietary deal flow as well as the expertise to help analyze the financial merits of prospective investment opportunities as they arise.
Wealth Consulting
Metropolitan Capital’s consultative approach to private wealth management has helped the CEO gain a clear picture of his comprehensive financial situation and evaluate new private investment opportunities. Acting as the client’s outsourced personal CFO, Metropolitan Capital helps the client analyze any new investments that he is presented with. Metropolitan Capital also has created consolidated financial statements and models that give the client visibility into how various decisions will affect his net worth and future cash flows.
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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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MetCap’s Differentiated Position as a Universal Bank for Entrepreneurs and Deep Network of Relationships Prove to be a Perfect Match for Enterprising Brothers
Client Background
Long standing clients of the bank, two entrepreneurial brothers were looking for strategic add-on acquisitions for their digital media company. In addition, they were seeking investment opportunities that would also serve to diversify their investment holdings. Finding a traditional financial partner that could assist in the sourcing, analyzing and capital facilitation of the investments was a difficult assignment. MetCap’s differentiated position as a Universal Bank for entrepreneurs and deep network of relationships proved to be a perfect match for the brothers.
The length and familiarity of the relationship with MetCap and its full spectrum of financial services allowed the clients to seamlessly work in concert within the Universal Bank to make strategic and timely investments and ultimately grow their investment portfolio.
SOLUTIONS DELIVERED
Commercial Banking
Over the years, MetCap has provided loan facilities to the clients to make investments in the real estate, bar and restaurant and digital media industries. MetCap tailored each loan to allow for the clients to retain as much equity and upside potential as possible. The clients continue to hold deposits and loans with the Commercial Bank for their companies and holdings.
Investment Banking
MetCap provides on-going assistance in evaluating the merits and portfolio alignment of new opportunities as they arise as well as buy and sell-side advisory to complete the transactions. Most recently, MetCap provided due diligence and help with structuring and closing the largest add-on acquisition to date for their digital media platform.
Private Banking
In addition to commercial deposits and loans, the clients individually hold deposits and loans with the bank.
Securities offered through Metropolitan Capital Investment Banc, member FINRA and SIPC. Check the background on either the firm or the representative on FINRA's BrokerCheck.
Metropolitan Capital Investment Banc and Metropolitan Capital Bank & Trust are affiliates through common ownership of Metropolitan Capital Bancorp, Inc. Staff of Metropolitan Capital Investment Banc may also be on the staff of Metropolitan Capital Bank & Trust. Not FDIC Insured. No Bank Guarantee. May Lose Value. Investments are subject to general market and economic risk including the loss of principal investment. Metropolitan Capital Investment Banc cannot guarantee that the investment platform provided will perform in the manner desired. Some companies available for investment through the investment platform are not subject to the same regulatory scrutiny required of publicly-traded companies and therefore information upon which to make an informed investment decision may not be readily available. Metropolitan Investment Banc is committed to the continuance of business operations in the event of a significant business disruption. The Firm's strategy for continuing business in response to a significant business disruption is to first ensure the safety and security of all employees and safeguard Firm property. Financial and operational assessments will then be made to quickly recover and resume operations. With that in mind, we are providing you with information on our Business Continuity Plan (the "Plan").
