Equity Bank Services

TCM is building an equity bank comprised of competitively focused capital and shareholder exit alternatives.  This is a relatively new form of activity in the financial industry.

The investor does what he is best at, i.e. providing underwriting expertise, structure and money to the privately owned company.  The private company owner obtains a fair deal, negotiated with professionalism, while avoiding the pitfalls and higher costs of the investment banking ‘shopping process.’

Equity Bank Clients
•    Private Equity Firms
•    Venture Capital Firms
•    Angel Funds
•    Hedge Funds
•    Strategic Corporate Partners
•    Economic Development Organizations
•    ‘Double Bottom Line’ Sources
•    Public Funds
•    Very High Net Worth Investors
•    Mezzanine Investors
•    Niche and/or ‘Stretch’ Lenders

What the Equity Bank Clients Have in Common

Equity bank clients are looking for unshopped transactions in industries of interest, in a geographic area.  They are also looking for talented and trustworthy operators who know how to take a business to a higher level with capital, creating value and exit opportunities for all owners.  Equity bank clients are looking for operators of sustainable business models, who are conceptually aligned with their investment strategy.

As the intermediary, we can provide the Growth Capitalist with the following:

General
•    Competing sources of investment

Specific
•    The local marketability of the investor’s appetite and investment profile
•    The structure and motivations of the underlying capital
•    The details of the deal history of the investor
•    The realistic ability of the investor to bring more than money to a portfolio company
•    The investor’s responsiveness to the growth capitalist and to specific investment situations
•    The nature of feedback from operators of previous portfolio companies
•    The length of time left for new investments from a fund or a pool of capital
•    Willingness to make follow-on investments
•    The cultural fit of the investment professionals
•    The specific cost/benefit equation or opportunity cost of aligning with the investor

What the Equity Bank Client Receives

•    Increased deal flow resulting in increased choices and higher returns
•    Filtered deal flow with less wheel spinning
•    Increased deal closing ability and better opening relationships with portfolio companies
•    Access to managers, technicians, and local relationships facilitating stronger portfolio companies

Two Tiers (or Types) of Equity Bank Contracts

Tier I clients:
•    First right of refusal in a defined bandwidth of investment opportunities coupled with exclusive geographic representation
•    Customized connectivity strategy
•    Customized two-way deal flow communication plan
•    Attendance at select conferences, trade shows or other events
•    Negotiated monthly retainer, success fee and choice to participate in equity
•    Contract with cancelable with 30 days notification

Tier II clients:
•    Yet-to-be-determined  (can we define this?)

Capital Raising/Owner Exit Transactions

Clients are, a) private companies wishing to raise capital, sell a line of business or sell an entire company, or b) managers of operating divisions or subsidiaries of parent companies who may have an opportunity to form a group to buy the operation from the parent.  Business owners may be interested in obtaining absolute top dollar sale price, absolute lowest capital cost or they may have a very difficult business model to describe.

Growth Project/Growth Consultation Services

Clients are private companies seeking growth using the capital of others.
Business owners may be interested in help building and executing the formation of joint ventures, strategic alliances, collaborations, acquisitions, licensing/royalty or other business agreements (supply, marketing, procurement, processing, management, etc.)

Clients are private companies seeking real marketplace feedback regarding the durability of the business model through a process called vetting.  Business owners may be interested in the opinions of peers or others familiar with an industry (but not competitively threatening.)

Clients are founders; entrepreneurs or small business owners who are not ready for professional investment yet need to set the stage for growth and development.  Business owners may want to consider the use of a business development contract.  This involves forming a group of ‘local’ specialists such as business managers, financial experts, selling/marketing strategists, information and communication technology specialists and other.  Working in conjunction with the principals of the clients, such a group – steps into a business very intensely and deeply for a defined period of time in order to establish enterprise sustainability or durability.

Clients are private companies, founders, entrepreneurs or other organizations who do not have a specific project but are seeking advice on an hourly basis with regard to capital, capital structure, valuation, capital formation strategy, et.

Clients, who can ask for and receive advice and execution at reduced rates or on a pay-as-able basis, are:
•    Minority-owned business enterprises;
•    Women-owned business enterprises;
•    Faith-based organizations;
•    Community/regional-based economic development organizations;
•    Double bottom line (socially responsible, environmentally conscious, farmer-friendly, etc.) enterprises;
•    Academic or scientific institutions attempting to help scientists become successful business builders.