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VAULT CAREER GUIDE TO
MIDDLE MARKET
INVESTMENT BANKING
JOE BEL BRUNO AND THE STAFF OF VAULT
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Table of Contents
INTRODUCTION
THE SCOOP
Chapter One: The Middle Market Niche
The New Landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

The Downturn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
The Differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Chapter Two: Deals and Dealmakers
M&A Big and Small . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

A Family Affair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Ramping Up, Here and Abroad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
In Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
Chapter Three: Research Below the Radar
15
The Niche . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

The Job . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Chapter Four: Middle Market Models
19
Boutique Shopping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

The New Crop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
More Flexibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Private Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
GETTING HIRED
27
Chapter Five: Education and Internships
29
Educational Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29

Internships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
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Chapter Six: Preparing for the Search
33
Cover Letter and Resume . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33

Sample Cover Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35
Sample Resume . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
Headhunters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
Chapter Seven: Acing the Interview
41
Studying Up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
The Interview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
Sample Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
Expertise Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48
ON THE JOB
51
Chapter Eight: Career Paths, Compensation and Lifestyle
53
The Jobs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53

Lifestyle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56
Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
Uppers and Downers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
Chapter Nine: Days in the Life
63
Analyst . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
Managing Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66
FINAL ANALYSIS
71
FIRM PROFILES
73
Allegiance Capital Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75

Alpha Omega Capital Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77
Baird . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79
BCC Capital Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83
Bengur Bryan & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85
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Boenning & Scattergood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87

Breckenridge Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89
Brisbane Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91
Brookwood Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93
Brown Gibbons Lang & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95
C.V. Lemmon & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97
Caymus Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99
Curtis Financial Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101
Dominion Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103
Edgeview Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105
Evercore Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107
FOCUS Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112
Fox-Pitt Kelton Cochran Caronia Waller . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116
Gemini Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119
Growth Capital Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121
GulfStar Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123
GW Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125
Harpeth Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127
Harris Williams & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129
Headwaters MB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131
Heritage Capital Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133
Herrera Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135
Hyde Park Capital Advisors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137
Ironwood Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139
Janes Capital Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141
Jefferies & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143
JMP Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147

JPS Capital Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151
Keefe, Bruyette & Woods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153
KPMG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156
Ladenburg Thalmann & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160
Lazard Middle Market (Goldsmith Agio Helms) . . . . . . . . . . . . . . . . . . . . . . . . .163
Leerink Swann . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165
Lighthouse Capital Advisors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168
Lincoln International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .170
McColl Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172
McGladrey Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .174
Morgan Joseph & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .178
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Mosaic Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180

Newbury, Piret & Company, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182
P&M Corporate Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184
Penn Capital Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .186
Piper Jaffray . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .188
Prairie Capital Advisors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .192
Provident Healthcare Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .194
Robertson & Foley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196
Shoreline Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198
SPP Capital Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .200
St. Charles Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .203
The DAK Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .206
Trenwith Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .208
Triangle Capital Corp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .210
Vercor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .212
Verdant Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .214
Watermark Advisors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .216
William Blair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .218
APPENDIX
221
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .223
Introduction
The idea of a high-powered investment bankers lifestyle has been shaped by
Hollywood for decades, extolling a culture of corporate raiders with a "greed is good"
mentality. Those hunting for a job on Wall Street imagine a future guiding Fortune
500 companies through dramatic multibillion-dollar hostile takeovers. And history
has done little to shake that imageuntil now.
Realigning Wall Street
There has been a massive realignment in the U.S. banking system in the last year,
one not seen since the Great Depression. Global financial turmoil due to the credit
crisis and a massive dislocation of stock markets have caused the collapse of several
storied investment houses. Bear Stearns and Merrill Lynch were forced into
emergency sales, while Lehman Brothers filed for bankruptcy. Citigroup, the banking
powerhouse cobbled together in 1999 as a financial supermarket, is now in the
process of selling its Smith Barney division to Morgan Stanley as a way to stay alive.
Together, three-fifths of the U.S. investment banking industry's biggest names
virtually disappeared overnightwith only Goldman Sachs and Morgan Stanley
remaining independent. That leaves a handful of small investment banks, including
Lazard and Evercore Partners, to provide services like M&A advice to companies.
The hundreds of smaller firms that specialize in middle market deals have gained
prominence because they have run into less trouble during the downturn by avoiding
betting on risky mortgage-backed securities that vanquished their larger peers.
Meanwhile, the government plans to pump more than $700 billion into the
beleaguered banking system in 2009 to shore up bank balance sheets. But with that
plan comes restrictions. President Obama has placed drastic restrictions on how
much banks that take taxpayer money can pay in bonus compensation for their top
bankers. That means the end of Wall Streets freewheeling days, and the beginning
of an exodus. A growing number of veteran bankers are leaving major firms to escape
having their compensation scrutinized. Many of them are heading to middle market
and boutique investment banks, which are largely private firms that arent subject to
such restrictions. And these well-known bankers are expected to lift the prospects for
smaller firms as they compete against the Wall Street establishment.
Growing in the middle

From billionaire investor Carl Icahn's takeover of TWA in the 1980s to Exxon's $86
billion acquisition of rival Mobil two decades later, the lore of investment banking's
greatest hits has become a cornerstone of business school textbooks. But what
aspiring bankers might want to take into consideration is that there are more than 13
million companies operating in the United States, a broad swath of businesses
spanning from the corner pet store to corporate titans like IBM and General Electric.
Not every player in the merger and acquisition landscape fits into a neat category. A
select number of deals done between members of the Standard & Poor's 500 index

Introduction
or Dow Jones industrials are certainly plastered across the front pages of leading
financial newspapers. But, for each of those transactions, there are thousands more
that never capture the media's attention.
The increase in the number of smaller deals, known in the financial world as the
middle market, has grown significantly in the past few years. Investment bankers
specializing in these kind of transactions say it is a sign of the times. Those family
owned businesses whose leadership has been handed down from father to son are
now finding the latest generation unwilling to take the reins. In other cases, midsized
companies can't compete against bigger rivals who have a more global reach. They
comprise the backbone of American entrepreneurship, those companies that cram
into business parks along major highways from Indiana to California to New Jersey.
And they are ready to make deals.
Where the action is

With all the talk about a global economic slowdown, the conventional wisdom holds
that corporate buyouts would be sharply curtailed. But as organic growth stagnates,
many companies turn to acquisitions as a way to expand. The buyout party certainly
continued in 2008, with bankers perched in corner offices, securing more than $1
trillion worth of transactions. But that was a 27 percent decline from the same period
the previous year, despite big global deals like Swiss drugmaker Novartis' recordsetting $39 billion stake in ophthalmology specialist Alcon. Middle market activity
showed an increase.
There were 3,417 middle market deals completed last year, up from only 2,403 in
2007, according to data provider Dealogic, which tracks investment activity. And the
first quarter of 2009 showed that middle market deals remained on track. There were
500 transactions announced, which is slightly higher than the year ago period. "The
middle market is really where all the action is right now," Andrew Apfelberg, a
corporate M&A attorney and partner at Rutter Hobbs & Davidoff, told U.S. News &
World Report. The rise in these kinds of transactions comes during a very bleak
period for the investment banking industry.
Looking beyond the big guys

Industry analysts believe it could be months or even years before the winners and
losers of this latest cycle emerge. But, the smaller firms that handle middle market
companies have certainly become more appealing destinations for top workers in the
industry. And they also are becoming more popular among big and small companies
alike, especially since many of their founders are headed by industry veterans. For
example, the former Smith Barney chief executive, Robert Greenhill started Greenhill
& Co. in 1996; Lehman Brothers banker Roger Altman runs Evercore; and ex-UBS
investment bank head Kenneth Moelis runs Moelis & Co. So, those looking to launch
their career as an investment banker might be wise to cast a wider net than the
textbooks dictate.
THE
SCOOP
The Middle Market Niche

Deals and Dealmakers
Research below the Radar
Middle Market Models

Chapter 1
The lure of Wall Street

Most people looking to break into the world of high finance have long sought out jobs
at some of Wall Street's most venerable investment banks. For generations, these
firms have done everything from finance the nation's industrial revolution to ponying
up the cash to launch the latest high-technology company. The big investment banks
handle a variety of tasks for corporate America. Chief among their roles has been to
buy and sell companies, but that's not where it ends. Companies also turn to
investment banks to raise capital, either through massive loans, bond offerings, or
even going public on a major stock exchange. They are the counselor to every
member of the Standard & Poors 500 index, and the privately held companies that
form the backbone of American business.
Everyone's heard of Wall Street's biggest investment banking names like Goldman
Sachs or Morgan Stanley. And, a massive consolidation craze in the late-1990s
forced some key firms into the arms of even bigger retail banks, such as Smith Barney
having been folded into Citigroup. But, there has never been more change in the
industry than what occurred in 2008 -- a year that will be remembered as the start of
the biggest financial crisis to hit the world since the Great Depression.
America's biggest investment banks took some huge gambles in the securities
market, and lost. This caused the oldest and most revered names to vanish almost
overnight. Lehman Brothers, a securities firm that got its start in 1844 as a dry goods
store in Montgomery, Alabama, filed for Chapter 11, which instantly became the
biggest bankruptcy in the nation's history. Bear Stearns was sold at a fire-sale price
to retail banking giant JPMorgan Chase & Co. And, Merrill Lynch & Co.the world's
biggest brokerageagreed to sell itself to Bank of America to avoid a collapse.
THE NEW LANDSCAPE

These names are what the industry calls the "bulge bracket firms." But, the biggest
changes on Wall Street since the 1930s have left it with a stark new landscape. While
thousands of investment bankers have found themselves working for a new firm or
looking for work, there's an important niche in the investment banking world that
continues to thrive. Enter the middle market, those smaller firms are scattered across
the country and do everything their bigger rivals canjust on a smaller scale. Middle
market firms like Keefe Bruyette & Woods in New York, Oppenheimer in Toronto,
Canada, and Thomas Weisel Partners in San Francisco are all smaller-sized securities
firms that are making some big money, despite the deepening malaise.
Thomas Weisel, who started his firm in 1998 after a previous middle market
investment bank he launched was bought by Bank of America, sees opportunity amid
the industry's chaos. And his company has steadily been hiring throughout the
downturn. "With the demise of several large Wall Street firms and the redirection of
[the] business models of others, opportunities in investment banking have never been
5

greater," he told analysts recently. "On the brokerage side, based on U.S. trading, we
estimate that the average middle market firm could see brokerage revenue grow
incrementally by up to 20 percent. This presents opportunities to gain market share
in both investment banking and brokerage, and we expect to capture these
opportunities."
Weisels firm and other middle market players offer pretty much what the giant Wall
Street firms do. On the investment banking side, they offer advice to midsized
companies looking to buy a rival or sell out. Theyll offer the companies they advise
services like raising capital, either through underwriting loans or issuing debt. And
some of their clients might even be on the path to going public on a regional or major
stock exchange. There are middle market firms that often invest in their clients
businesses in the hopes of cashing out at a premium down the road. And full-service
middle market investment banks even act as research houses and offer stock advice
on small publicly traded companies that arent on the radar of bigger competitors.
THE DOWNTURN
Major Wall Street firms tend to have their best quarters during the big growth spurts
in the U.S. economy. Thats when their army of bankers, who negotiate deals and
lead big capital-raising campaigns, collect those eye-popping paychecks. But when
the economy cools off, so do the deals. Lenders in the past year have grown wary of
approving transactions on concerns these companies might go belly up and not be
able to pay them back. But, middle market dealswhich typically range from $500
million to $1 billionhave kept rolling along.
These deals aren't going to be bragged about on television stations like Fox Business
or CNBC, nor will they make the front pages of The Wall Street Journal or the
Financial Times. The stock market's record Bull Run pushed corporate valuations to
sky-high levels by the time 2007 rolled around, making merger and acquisition deals
much more expensive to complete. But, the financial crisis has, in a sense, let the
air out of the market and brought prices back down to earth. That's opened up
opportunities for middle market deals, which some believe remains fairly insulated
from economic ups and downs.
With valuations returning to normal, midsized public and private companies are a bit
more willing to put themselves out there. "Despite what's going on with the market
and the economy, a lot of the businesses that we look at are still very good
businesses. There will be opportunities, certainly, in a distressed world, and
recessions don't last forever," said Sean Traynor, a partner at private equity firm
Welsh, Carson, Anderson & Stowe in New York, speaking at a conference at the
Wharton School of Business.

Holding steady
According to Dealogic, megadeals slowed nearly to a stop in 2008. Deals in the
middle market continued, though at a slower pace. Separate surveys from Ernst &
Young and Thomson Reuters found the same pattern. While overall volume remained
down, middle market deals continue to be relatively strong in relation to the broader
market downturn.
THE DIFFERENCES
The world's biggest investment banks have suffered losses so steep that they are
balking at making loans or backing M&A deals. And, those blockbuster M&A
agreements that once stunned the financial world because of the prices paid are
falling apart. The biggest example in 2008 was the collapse of mining behemoth BHP
Billiton's $188 billion acquisition of rival Rio Tinto. That added to a startling statistic
during the fourth quarter of the year that the value of busted mergers during the
period was nearly equal to the value of the deals that went through.
According to Thomson Reuters data, there have been $322 billion of withdrawn M&A
deals in the fourth quarter of 2008 as the credit crisis worsened, compared with $362
billion of announced deals. For every 100 mergers or acquisitions announced in the
fourth quarter, seven were called off. That means the big investment banks on these
deals will lose out on the coveted merger fees that once propelled their earnings. But,
the dead deals might also give bankers some piece of mind these days. A
combination like BHP Billiton and Rio Tinto would have meant the 16 or so banks
involved would have had to underwrite tens of billions of dollars of loans for which
there are few buyers as credit has dried up on Wall Street.
Regional advantage
Middle market transactions don't really have this problem. While the firms in this
industry still collect the same high fees for advising on a deal, they often obtain
financing through regional and community banks that haven't racked up the kind of
massive losses that the nation's biggest financial institutions have during the crisis.
These smaller banks, in many cases, are still willing to lend, though, they are doing
so with a much more cautious tone. These deals are also being struck for entirely
different reasons than those megadeals that are falling apart these days.
All in the family

Acquisitions are most often sought out for economic reasons. As an example, Bell
Canada has been struggling financially and finally agreed to be acquired by a number
of private equity firms for about $42 billion. That deal is among those that likely won't
go through because it is so difficult for the acquirers to raise the financing for it. On
the contrary, middle market companies tend to be quite solvent and are being put on

the auction block for other considerations. In many cases, these are family owned
businesses that choose to sell for reasons such as succession or estate planning.
We are the world
Another big push for midsized companies has been globalization. Smaller companies
have felt the need to grow overseas to compete with bigger rivals, and that's kept
investment banks with a middle market bent quite busy. Booming economies like
China and India represent opportunities for American companies. These countries
might be perceived as only exporting goods and services to the more developed
world, but they also need equipment and expertise. That's where partners in the U.S.
come in. Even midsized U.S. manufacturers, so frequently written off as dinosaurs,
can continue to compete by teaming up with partners from abroad.

Chapter 2
M&A BIG AND SMALL

The main role for middle market firms around the country is to serve the needs of
businesses looking for merger and acquisition advice. They put buyers and sellers
together, helping companies grow geographically or just unload a business entirely.
In some cases, middle market firms will even invest their own money into an
acquisition in the hopes of cashing out at a bigger profit later. In a sense, these firms
act similar to the large private equity companies that have dominated M&A for the
past three years. Private equity shops tend to buy a company, own it for about five
years, and then cash in with a splashy initial public offering later down the line. Most
of the companies middle market firms invest in tend to be too small to garner any
attention in a public flotation, so bankers will instead try to sell them to other
companies once valuations climb higher.
There are a number of reasons why the chief executive of a midsized firm might want
to get a deal done. The main motivation has always been growth, a way companies
can expand both product lines and geographic footprint. The past few years have
seen the emergence of other factors, such as tax reasons, accounting standards,
social reasons, structural issues and the need to raise more capital to keep the
business going. Turning to a middle market firm might be not just the best solution
for companies looking to for some M&A advice, but in many cases their only solution.
The big Wall Street investment banks, while they have field offices around the world,
might not have the same specializations on Main Street as their smaller brethren.
Middle market firms often specialize in specific regions of the country, industries or
types of deals. They also provide a level of attention and detail that the big investment
banks cannot offer to midsized companies. That, in itself, is the biggest reason why
middle market firms are thriving despite the intense competition in the investment
banking industry.
A FAMILY AFFAIR
Interviews with the heads of middle market investment banks have turned up one
main reason why midsized companies are looking to do deals. Many midsized
companies these days are family owned operations that might be reluctant to seek
out investment advice from an investment bank thousands of miles away. Take a look
in any town in the United States and youre bound to find businesses that have been
handed down from one generation to the next. They might be auto parts makers in
Ohio or Michigan that feed products to Detroits big automakers. They could be oil
services companies in Texas and along the Gulf Coast states. They are agriculturalbased companies in Americas farm belt. These companies exist in every city, county
and state that once dominated the nations backbone during a time when industrial
companies ruled the business landscape. And, as the U.S. began to shift to a more
services-oriented business culture, these companies began to diminish. Today, only

the strong survive. And, the owners are finding that they need help if they want to
stay in operation. These companies turn to middle market investment banks to make
a sale. As middle market interest grows, private equity and strategic buyers will do
well to focus their sights on what makes these deals unique if they want to increase
their success in bidding for and completing them, said Mitchell S. Ames, an M&A
partner in the New York office of law firm Pepper Hamilton LLP. Its important to
match the financial expertise of the investor with the operating expertise of the owneroperator with sensitivity, whether it involves the introduction of a new finance officer,
the addition of debt to the targets balance sheet or the creation of incentive-based
compensation plans where there were none.
The need for sensitivity comes into play because many of these companies are
used to wheeling-and-dealing on their own. Heres a typical case study: Bill Kirk,
president and CEO of Virginia-based Associated Asphalt, wanted to raise some capital
by attracting a private equity investor. The company has been in existence since
1948, and is one of the biggest asphalt suppliers in the Southeast. But, when it came
time to infuse the company with new capital, Kirk was uneasy. I was initially
reluctant to hire an investment bank because I had been approached by various
strategic purchasers. I felt that I knew what the value of our company was in the
marketplace, he said. He turned to middle market firm ICG Capital Partners in
Charlotte, North Carolina, for a recapitalization. The firm quickly found a match with
private equity firm Thayer Hidden Creek Capital Investors in a multimillion-dollar deal.
Increasingly sophisticated
Making an acquisition a decade ago might have been as simple as having an attorney
draw up papers, and sitting down with a loan officer at a local bank to put the
financing together. But, todays midsized company faces furious demands and a
whole new level of competition. The deals have also become much more
sophisticated. That local factory that needed to expand might have simply bought a
competitor a few counties away to take care of growing capacity needs. Now, it might
be looking to cement a deal in not only different states, but abroad. Those looking
for a job that entails scouting out businesses and putting deals together for a middle
market firm might want to make sure their passports are up to date. Theres a
growing indication that the next wave of investment banking deals might be coming
from overseas, where local currencies dwarf the U.S. dollar and make American
companies look cheap. Meanwhile, the tightening of the credit markets, and the
resulting sharp decline in highly leveraged megadeals, has shifted much of the M&A
activity toward smaller, easier-to-finance deals.
RAMPING UP, HERE AND ABROAD

Leland J. Lewis, a managing partner at Greenwich, Conn.-based Key Principal
Partners, expects the boom in middle market deals will only ramp up in the coming
years. He also agrees, with firsthand knowledge that the trend for overseas
10

transactions will only pick up speed in the years and months ahead. Going out on
the road and meeting with many owners, Lewis said he expects this will be a growing
part of the business. Manufacturing companies in particular have been feeling
pressure from their customers to be global. Many older owners are intimidated by the
idea of trying to implement such a strategy, and this may be the tipping point for them
to decide to sell the company. Sometimes they may have kids in the business but
they still sell because they dont want to put this burden on their kids either and think
that cash today may be a better thing to pass on.
Pennsylvania to China
The vast majority of M&A transactions that Lewis puts together are still domestic. But
there was one recent deal that not only might represent the future for middle market
investment banking, but sounds almost like the screenplay of a Hollywood movie. His
firm held a controlling interest in a small company located in Ridgeway, Pennsylvania,
that made metal components used in small engines such as lawnmowers or
transmissions.
Ridgeway is a small, somewhat isolated town with about 4,000 residents located in
the Northwest part of the state. Its a part of the country in which you wouldnt exactly
expect a company to be thinking globally. But, thats exactly what this metals
components maker did when the owners wanted to start up a plant7,200 miles
away in Yizheng, China. The company scouted out plants in the Chinese city to help
grow its business, install its technology and train workers there how to use it. That
created quite a culture clash, Lewis said, when it came time to dispatch workers from
Ridgeway clear across the world to meet their new colleagues from the East: Two of
the folks sent over there not only did not have passports prior to the trip, but actually
had never flown before. One of the workers was a mountain of a man with a tattoo,
beard and a penchant for wearing cutoff sleeve sweatshirts and black construction
boots. He requested the assignment. It was pretty entertaining watching him
interacting in Yizheng, China.
In 2008, there were 2,398 announced China M&A deals involving middle market
companies, an 11.8 percent increased compared to a year earlier, according to a
study by investment bank Robert W. Baird & Co. Dollar volume in 2008 totaled
$117.5 billion, up 42.3 percent from the prior-year period. That shows the intensity
of transactions in China, especially with a backdrop of declining deals throughout the
rest of the world.
On the domestic front

Domestically, companies are also faced with a number of regulatory, accounting and
governmental issues that might spur them into selling or buying a company. Financial
advisory firm PricewaterhouseCoopers transaction services group issued a report in
2008 outlining a number of factors that may drive a further increase in middle market
dealsand possibly all dealsin the months ahead. Among them:
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The possible increase in the capital gains tax under President Barack bama, a
move that will end the breaks that business owners have received in deciding to
cash out. More importantly, if passed by Congress, hiking capital gains could
prompt private equity firms to sell off some of their holdings and might even
discourage some midsized business owners from selling their businesses.
A large part of private equity earnings come from carried interest, in which a fund's
manager claims a percentage of the total profits earned of the fund when an
investment is sold. Management fees are taxed as high as 35 percent, the carried
interest is regarded as capital gains in the U.S. tax code. Instead of the average
capital gains tax of 15 percent, private equity fund managers could see their carried
interest taxed up to 35 percent. The opposition to the current tax treatment argues
that managing a fund is a service and should be taxed in the same way as other
service providers like, say, teachers or mechanics.
Theres also a host of new accounting rules that went into effect in 2009 that has
left the M&A community spinning. Midsized companies will turn increasingly to
investment banks to gain expertise in how to pursue acquisitions while navigating
through a number of new rules, known in the industry as Financial Accounting
Standards. Among them is FAS 141R, a rule on business combinations that
requires more up-front reporting about the nature of business deals, and the fair
value of the assets and liabilities that are changing hands. Business owners also
must grapple with FAS 157, which goes over the dos and donts of measuring how
the fair value of a company is calculated.
The U.S. Treasury Departments $700 billion bailout of the nations banking
industry allows financial institutions to tap the fund with the requirement that the
new capital be used for lending. With the extraordinary turmoil that has been
experienced in the nations capital markets and in the investment banking sector,
commercial banks have become more important than ever to the U.S. economy.
Since middle market deals rarely depend on using the bond or stock markets to
raise money for an acquisition, thats put even more significance on bank lending.
Midsized companies rely on commercial banks of all sizes to extend loans as a way
to finance deals, and that slowed in 2008 due to the credit crunch. The early
stages of the governments TARP program has indicated banks are still hesitant to
loan out money, even after obtaining capital from the government.
This must change if middle market deals are to flourish, and there are some
indications that bank chiefs realize this. As a strong regional bank with a major
focus on financing small and middle market businesses, we are pleased to have
this additional capital to better serve the lending needs of customers throughout the
Western United States, said Zions Bancorp Chairman and CEO Harris Simmons
after his company received $1.4 billion under the government program late last
year. We expect to deploy this new capital in the form of prudent lending in the
markets we serve.
12

IN DEMAND
There was a time when those looking to join the investment banking fields ranks
would have settled for nothing less than a top-notch Wall Street firm. All that changed
with the great tumult of 2008, and instead recruiters are placing candidates at
boutique and middle market investment firms that offer more job stability. The deals
youll work on will certainly be smaller in size, but the experience is similar in nature
to what youd find at the bigger firms that carry more cachet in the investment
banking world. Many first-time bankers are being advised to ride out the bear market
at middle market firms, where they can build an impressive resume with the ultimate
goal of landing that perfect job on Wall Street. Peter Kies, head of the investment
bank recruiting committee at Baird told The Wall Street Journal that there has been
a 50 percent increase in interest from MBA graduates over 2008. He said the firm
is appealing to students on a national level rather than just at business schools from
the Midwest and East Coast. "We're sort of like kids in a candy store right now in
terms of tracking high-quality folks," he told the newspaper. That also means that
middle market firms can be much more discerning about who they bring on board.
Big Wall Street banks, during the high-rolling bull market days, would hire a thousand
new recruits a year from Americas business schools. Their collapse has certainly left
a big void in the industry. But the good news is that there are hundreds of middle
market investment banks around the country, with the number of employees varying
from a few dozen to hundreds. These firms are hiring as more attention trends toward
middle market deals, the CEOs of these firms told Vault. The kind of jobs out there
vary, but still closely mirror the functions that youd find at a premier name like
Goldman Sachs. Here are some career paths in the middle market niche:
Mergers and acquisitions
The bread-and-butter of any middle market firm, those working in this area advise
clients, value transactions and hammer out deals. Your duties could involve
analyzing deals. So, expect to begin running lots of valuation models on
spreadsheets and gradually get more client focus as you progress. You might also
be asked to recommend to the management team whether or not they should
participate in a deal the firm is working on. Many middle market firms take
investments in the companies they advise, an area known in the business as
merchant banking.
Advisory
One subset of an investment banks M&A business is the advisory services
business. Positions on this team might provide areas like risk management to
clients. Other times, analysts on the team will be asked to determine a clients
value, options for creating value or tracking conditions in the clients industry.

13

Corporate finance
Positions in this group work to help companies raise the capital they need, whether
it be to finance new projects or operations. They look to identify the amount and
structure of the funds needed for the client, and that could take the form of loans,
equity investments or securing more sophisticated forms of debt like bridge
financings. Starting analysts in corporate finance work might be asked to prepare
the necessary paperwork for the capital financing, and even be asked to attend the
road shows used to pitch investors.
Trading
Some of the biggest middle market firms might just be a notch down in size from
the big Wall Street banks, and could be involved in businesses such as sales and
trading. After the investment banking side lands a deal that involves underwriting
equities or bonds that finance the transaction, their traders are asked to sell them.
Trading is one of the toughest jobs on Wall Street where one must have a thorough
knowledge of the markets, financial instruments and an almost sixth sense about
how to buy and sell. The bottom line is that any job on a trading desk demands
the ability to convince other traders why they should purchase your stock.
Institutional sales
Some of the bigger middle market outfits that deal with small publicly traded
companies might also have an institutional sales business. Those hired for these
jobs would be responsible for pitching securities to institutional investors, like
portfolio managers at mutual funds or pension funds.
14
Research Below the Radar

Chapter 3
The history of stock advice

For as long as stocks have traded on an exchange, investors have relied on the advice
of others to tell them what to buy and what to sell. The roots of The Wall Street
Journal, Americas leading publication covering all things business, stretch back to
1882 under the masthead Customers Afternoon Letter. That publication helped
investors obtain investment advice in the days when the New York Stock Exchange
first set up shop at the corner of Wall Street and Broad Street in lower Manhattan. A
few years later, reporters Charles Dow, Edward Jones and Charles Bergstresser
converted the letter into its current incarnation. They also added as a regular feature
the Dow Jones Industrial Average, the first of several indexes that tracks the biggest
U.S. companies. For more than a century, investors have been relying on anything
written about stocks to guide them in their investment decisions. In the Internet Age,
finding this kind of stock advice is just a click away. Investors with online brokerage
accounts can tap into resources from the biggest U.S. investment banks just as easily
as a wealthy investor leaning on the knowledge of his high-profile broker. While the
face of investment banking might be changing radically around the world, the one
constant will continue to be solid investment advice.
Driving the business
This has been one of the most lucrative businesses for Wall Streets elite banks. Stock
analysts, some making millions of dollars a year, are paid to pore over the balance
sheets of major companies and find out what is really driving revenue. They earn a
living trying to discover which companies might become the next Enron, shifting
around assets to hide the fact they are losing money. They try to identify the next big
company to become the darling of Wall Street, like a Google or an Apple. Most of the
big research houses track Americas biggest companies, those that fall under the
Dows 30 members or the Standard & Poors 500. But, that begs the question: What
about the other 10,000 companies that list some form of security on American stock
exchanges?
Listing shares
Many U.S. companies dont even trade on a major exchange, instead listing their
shares elsewhere. Until acquired by the New York Stock Exchange in 2008, the once
mighty American Stock Exchange was home to about 600 public companies.
Hundreds of others, labeled as small-cap, traded on regional exchanges in
Chicago, Boston, Philadelphia, Miami and dozens of long-defunct ones in cities like
New Orleans and Los Angeles. Then there are those tiny companies that dont even
trade on an exchange, and instead rely on electronic quotation systems that display
real-time quotes and information for many over-the-counter (or OTC) securities.
For instance, the Pink Sheets is an alternative exchange that got its start in 1913.
15

Pink OTC Markets to this day facilitates the exchange of securities electronically
between brokers for securities that dont trade on any brick-and-mortar exchange.
Research matters
There is a reason why major investment banks and brokerages dont push their
research departments to cover midsized, publicly traded companies. It is all about
demand. When putting merger and acquisition deals together, investment banks
typically cater to larger companies that can afford high-priced fees. They collect
more money advising a member of the Dow Jones Industrial Average rather than a
smaller company grouped into smaller indexes. So, when it comes to providing
research to clients, the big investment banks usually stick to companies that they
might do business with. And, with a limited number of analysts, these firms also want
to cover the most actively traded stocks. Their retail brokerage customers will most
likely want to buy shares of a big conglomerate like General Electric rather than a
small up-and-coming company that isnt widely known. But, that doesnt mean
covering midsized companies is not a lucrative field. In fact, it is very much in
demand.
Middle market investment banks have research departments specializing in
companies that arent covered by their bigger rivals. From covering small retail
chains to upstart biotechnology firms, the middle market investment banks have
carved out a very important niche. Stock pickers are coveted throughout the entire
financial industry, but even more so for those companies that fly under the radar.
And they are winning accolades for it, one example being Piper Jaffray, a
Minneapolis-based middle market investment bank and securities firm that was
recently given top honors in The Wall Street Journals 2008 Best on the Street
analysts survey. A number of its analysts were recognized with awards, resulting in
a 14th place ranking overall in 2008. The newspaper chose 220 award winners in
45 industry groups from more than 1,700 eligible analysts. Joel Denney, head of
investment research at Piper Jaffray, said the awards were a great example of how
our investment research team is fully dedicated to continually providing clients with
proprietary and unique research, as well as high-quality stock analysis across various
industries.
THE NICHE
Providing that high-quality analysis of midsized public companies is a hot commodity
on Wall Street these days. Not only are middle market firms hiring analysts, but there
are a number of privately run trading operations, such as hedge funds or private
equity firms, willing to pay top dollar for analysts that can focus on smaller
companies. This means that big investment houses like Morgan Stanley or JPMorgan
or Citigroups Smith Barney arent the only places to send your resume. There are
dozens of middle market firms like Piper Jaffray that are on the hunt for analysts
16

who can break down a Dow component as well as a member of the broader Wilshire
2000 index of smaller companies.
The small-cap universe

Investors are constantly in search of good stock picks for smaller companies. In fact,
indexes like the Wilshire 2000 are often the first group of stocks to move higher when
a bear market begins to wane. While these stocks might be a bit more volatile, they
often provide bigger gains for investors. Thats why a simple search of the internet
will turn up hundreds of different websites catering to investors who crave information
about small-cap stocks that are ready to take off. Reading some of these sites might
be a good way to familiarize yourself with what the industry calls the small-cap
universe. Smallcapinvestor.com or smallcapcenter.com are two places to start.
Youll quickly see why analysts covering these companies are in high demand.
To become a securities analyst at a middle market shop, you have to gain specific
knowledge about an industry or a region. This means not just the large companies,
or big-cap stocks, that are covered by the major research firms. Instead, middle
market investment banks tend to specialize in small-caps. But, dont let the labels
fool you. The growth of stock valuations over the years, despite the recent bear
market, has elevated small-cap stocks into some pretty big companies. Market
capitalization is calculated by multiplying the price of a stock by the number of shares
outstanding. This represents the markets value of a stock, without taking into
account assets, how much cash the company might have or the value of any publicly
traded bonds. And, these days, small-caps carry the same kind of value that the big
S&P 500 companies did just a few decades ago.
Big-cap vs. small-cap

The definition of big-cap and small-cap might differ between various investment
banks, though the differences are mostly minor. Big-cap generally refers to major
companies like General Electric or IBM, which are also called blue chip stocks in
market lingo. They are considered to carry less risk during market downturns, but
also have the least upside potential during a bull market. However, these represent
a minority of publicly traded stocks. Small-cap stocks are generally considered to be
more risky because of their size, but offer the most upside potential. They also attract
a distinct group of investors. While many people hold blue chips for years, those
sinking money into small-caps are often considered momentum investors. They pick
stocks of companies whose earnings are growing rapidly, and whose stock-price
charts indicate strong upward momentum. These investors rely on good research to
find stocks where they can ride the momentum for a short period of time, then cash
out at the first sign of trouble. Stocks like Allscripts Healthcare Solutions, which offers
hardware and software for the medical community, or personal products company
Smith & Wesson, have been cited as just a few small-cap names that are being
closely followed. Both trade on the NASDAQ Stock Markets small company
exchange, and are followed mostly by middle market analysts.
17

While stocks that fall below blue chip size might not attract the attention of analysts
at big research houses, theres still a real need to cover smaller companies. The
classifications between different classes of stocks are important because mutual
funds use these rankings to determine which stocks to buy. Heres a rough definition
of the various stock rankings:
Big-capMarket cap of $10 billion and greater
Mid-cap$2 billion to $10 billion
Small-cap$300 million to $2 billion
Micro-cap$50 million to $300 million
Nano-capUnder $50 million
THE JOB
Many job seekers applying to major research houses might start off as a junior
analyst, and get a limited amount of hands-on experience in how to cover stocks. At
a middle market firm, which doesnt have the staffing levels of bigger firms, be
prepared to hit the ground running. They are looking for analysts that are already well
versed in specific industries and sectors, and can immediately get on the telephone
and begin contacting institutional investors. Middle market shops also arent just
looking for recent MBAs or undergrads. Experience in the industry can be a big plus.
For instance, someone in the restaurant field might be able to use that as a
springboard to becoming a restaurant industry analyst. Knowing an industry inside
and out, and the ability to spot trends and provide accurate forecasts, is key to the
job. Analysts are often referred to as either quants or fundamentalists.
Fundamentalists make recommendations based on what's going on at a company
how's the CEO, what are the earnings, etc. Quants look at computer programs that
identify undervalued securities, markets or even whole countries. There are fewer
quant jobs, but they often pay more because the required skills are greater.
A bachelors degree is essential for analysts, who might also benefit from a specialty in
business administration, accounting, finance or statistics. In addition, an understanding
of administration and accounting are strongly suggested. Additional recommendations
include courses on bond valuation, risk management and options pricing.
Beyond trying to join an investment bank, those looking to become analysts also have
another option. One way to break into the business is to start as a ratings agency
analyst. The pay is relatively low and advancement opportunities aren't great, and
the investment banks know it and use the agencies as hunting grounds for new
analysts. Moody's Investors Service rates $5 trillion worth of securities and has 560
analysts. Standard & Poors rates $2 trillion worth of securities and has 800 analysts.
These agencies are highly profitable and grade the credit quality of companies
accessing the markets. They collect most of their revenue from issuer fees. "We are
not auditors and we don't use lie detectors, so it's up to our analysts to be smart
enough to ask the right questions," Edward Emmer, executive managing director and
head of S&P's corporate ratings department, said in a recent interview.
18

Chapter 4
The bulge bracket model that dominated Wall Street for generations has collapsed in
on itself. This has led to a total reshaping of the industry, and given rise to middle
market firms trying to solidify a niche in the world of investment banking. Some have
just a few departments being run by a dozen or so employees. Others count
hundreds on their payrolls. But this unexpected and sudden power shift brings
opportunity. For potential bankers, it opens up an entirely new segment thats looking
to hire. And, for the owners of these middle market firms, it is a golden opportunity
to forge an investment bank that serves the needs that beleaguered Wall Street banks
no longer can.
Want to get a job in this expanding sector? Better get to know their business models.
There are firms that focus only on mergers and acquisitions for a variety of industries,
and some of them offer research. Others combine M&A with private equity. Still
others toss in brokerage capabilities to their offerings. But there are also niche
models that focus on a specific sector in a move to own the industry they track,
known in the industry as boutique investment banks. Others not only put together
M&A deals for a specific sector, but also actively invest their own money through
private equity plays.
BOUTIQUE SHOPPING
Despite the economic downturn, one thing has remained a constant for Wall Streets
investment banking business: Boutique firms. These are small banks specializing in
mergers and acquisitions for a specific field, and they are often the first place the
industry turns to for advice. Theyve also carved out a very important niche over the
years, and, in many cases, the owners have sold their shops to bigger investment
banks and then have gone on to form new firms.
A decade ago, the financial world was abuzz about firms that zeroed in on the
technology industry and theres some evidence that there is about to be a major
resurgence in this field. Companies these days are discovering that smaller firms that
focus all of their attention on one field often help make the best merger matches, are
able to time the market right for an IPO and have the kind of institutional knowledge
to help provide better advice.
The tech sector

The most well-known boutique firms have come from the technology sector. And the
best way to show their influence on the industry might be through a little history
lesson. In the late 1990s emerged what bankers called the Four Horsemen firms:
Robertson Stephens, Hambrecht & Quist, Montgomery Securities and Alex. Brown.
They focused primarily on technology companies during the go-go internet days when
a small, unknown startup would routinely explode into a global player almost
19

overnight. None of them exist as independent firms today, with all four swallowed up
by bigger banks as the technology boom began to wane. However, they illustrate how
much influence boutique firms have over the entire industry. And they also indicate
how this sector sometimes rises from its own ashes, much like mythologys phoenix.
How it works
The best example might come from Sandy Robertson and Thomas Weisel. Both men
have been among the fiercest rivals in Silicon Valley investment banking circles, and
their moves have been among the industrys most tracked. Robertson, along with
Robert Coleman and Ken Siebel (who later went on to found Siebel Systems) formed
Robertson, Coleman & Siebel in 1969. That firm focused on middle market
investment banking, and in 1971 Weisel joined the firm, rebranded with his name in
its title. Seven years later, Weisel pulled off what was described later as a mutiny,
ousting Robertson and Coleman, and renaming the firm Montgomery Securities.
Robertson went on to form a new firm that was later named Robertson Stephens. The
two duked it out through the 1980s and 1990s, dispensing M&A advice to early
technology companies.
Middle market and boutique investment banks have always operated under the
careful eye of Wall Streets bulge bracket firms. Eventually, both Robertson and
Weisel found their firms swallowed by larger rivals. NationsBank acquired
Montgomery Securities and Bank of America snapped up Robertson Stephens. And
after NationsBank and BofA combined, Robertson Stephens was sold yet again.
After changing owners a few more times, the firm was eventually liquidated, and
Montgomery Securities was later rebranded Banc of America Securities. Their
founders didnt just vanish. Weisel opened up Weisel Partners, which remains one
of the middle markets biggest firms. Robertson helped form private equity shop
Francisco Partners, which owns technology companies like AdvancedMD and API
Software.
The tale of these two storied firms demonstrates that the middle market and boutique
M&A business plays a crucial role on Wall Street. And though some firms ultimately
dont remain independent, their leaders often go on to launch other financial
companies. This means that getting a job with a niche firm could lead to an entrance
into a bigger firm down the line. And, there is evidence that boutique firms are in the
midst of a reawakening.
THE NEW CROP

Theres a new breed of boutique investment banks making significant inroads these
days, and, ironically enough, in the technology industry. Sure, the tech-heavy
NASDAQ Stock Market finished 2008 down about 43 percent in 2008and has
slipped another 16 percent in the first quarter of 2009. But with the American
economy still ruled by companies like IBM, Apple and Google, technology continues
20

to be one of the nations biggest economic drivers. This industry also remains in
consolidation mode as it matures, and middle market investment banks have not lost
sight of this. Companies like Robertson Stephens and the other major boutique firms
focused in the 1990s on research, stock sales and initial public offerings in addition
to M&A. This new crop of boutique firms are focusing more narrowly on M&A advice,
and are also actively engaged in raising private equity money into the most lucrative
deals.
Addressing the IPO draught

Sticking with the example of technology companies and the firms that focus on them,
Silicon Valley produced just one initial public stock offering in 2008, the skimpiest
number in more than two decades and down from an average of 28 IPOs a year since
1985. Boutique firms once were able to bring companies public in splashy IPOs that
created legends on Wall Street. They did that with Netscape in 1995, Google in 2004
and VMware in 2007. ArcSight, a relatively obscure systems security firm, was the
only Silicon Valley IPO of 2008. In the first quarter of 2009, the IPO market remainef
frozen with only one major deal coming to market.
Thats decimated the world of venture capital firms, which identifies fledgling
companies and invests seed money in them. The VC firms bank on the fact that,
eventually, the companies they invest in will go public in multimillion-dollar IPOs.
Thats when the VC firms cash out and distribute the proceeds to their own investors.
The new wave of boutiques has become a welcome presence at a time when the IPO
drought has made it tough for anybody to make money. Getting the attention of the
big Wall Street firms for IPOs and other major deals has become almost impossible,
industry analysts say. "We can't get our companies out, and one reason is we can't
get the attention of the investment bankers," says Mark Heesen, president of the
National Venture Capital Association.
Thats opened the door to boutique firms that can arrange private equity dollars or
targeted M&A deals. "We're not trying to be everything to everybody," Brian Roberts,
a senior managing director at Evercore Partners, told BusinessWeek. His New Yorkbased firm is one of those offering M&A advice along with a $1.2 billion investment
fund that sinks private equity cash into companies. "We would much rather have a
dialogue with the CEO about what keeps him up at night."
That might be why Yahoo! Inc., one of the worlds leading search engines, hired
boutique middle market firm Moelis & Co. to provide advice to defend itself against a
hostile advance by Microsoft Corp. The firm was formed in 2007 by former UBS
investment banking head Ken Moelis. Emboldening the case for middle market
boutique banks was the man Google hiredFrank Quattrone another M&A luminary
who worked at Morgan Stanley, Deutsche Bank and Credit Suisse before forming his
own firm. He participated in some of the biggest deals in Silicon Valley, including the
initial public offerings of Netscape, Cisco and Amazon.com.

21

MORE FLEXIBILITY
Boutiques use longstanding industry relationships and small teams that assign senior
staff to deals. They offer flexibility to dart in and out of smaller buyouts to win
business. They're gaining prominence as some of the top banks have cut or
reassigned bankers due to the credit crisis.
Take a look at Allen & Co. Long known for its media expertise, the firm is making a
name for itself as a matchmaker between Silicon Valley web companies and East
Coast sources of capital. The New York-based company advised CNET Networks on
its $1.8 billion sale to CBS, and advised social networking website Bebo on its $850
million sale. Allen is also tied to brokering other high-profile tech industry financings,
helping widget software company Slide secure $50 million.
Evercore Partners is another firm that has also carved a niche in Silicon Valley. (?)
The firm advised Electronic Data Systems on how to structure its $13.9 billion sale to
Hewlett-Packard. Evercore has been among the top-25 banks based on M&A
transaction value for the past four years, after ranking 104th in 2003.
Here are a handful of others that are recognized in the industry for providing niche
services:
Leerink Swann - www.leerink.com
The company specializes in the health care field by offering institutional sales,
research, corporate finance and asset management services.
Caris & Company - www.cariscompany.com
The firm is a full service investment bank headquartered in Del Mar, Calif., that
focuses on technology, health care, consumer and energy companies.
Fox Pitt Kelton - www.fpk.com

The boutique investment bank specializes in the financial services sector.
JMP Securities - www.jmpsecurities.com
JMP was founded in 2000 by ex-Montgomery Securities (now part of Bank of
America) managers to fill a void left by acquired smaller, research-driven
investment banks.
Picking up volume
To be sure, the major investment banks are still the most powerful deal brokers on
Wall Street when it comes to acquisitions and investments, and the credit crisis and
recession in 2008 has certainly cut into business. A slowdown in M&A activity has
also put dents in some prominent boutiques. Companies worldwide completed 2,000
M&A deals in 2008, 11 percent fewer than 2007, according to Thomson Reuters.
22

But, M&A lawyers say volume could pick up again, particularly in the internet sector,
as the slower U.S. economy forces Web 2.0 startups to sell, and angel investors
look to liquidate their portfolios. Boutique banks have been able to thrive by
competing for the largest deals, while having the flexibility to reach down and scoop
up business on smaller deals sometimes bypassed by larger firms. But the little guys
are able to charge rates comparable to those of their larger competitors. "Their
premise is not that the fees are lower, it's that the service is better," says a law firm
partner who has advised tech companies on dozens of M&A deals. "This used to be
the guy who ran tech M&A at Goldman Sachs, Credit Suisse or Morgan Stanley, and
now they're focused on you."
PRIVATE EQUITY
The boom in mergers and acquisition helped more than just investment banks
flourish during the past few years. Private equity was a big contributor to the buyout
frenzy. These firms raise money through investors, which is known as a fund in the
industry. These funds vary in size from just a few hundred million to $10 billion or
more. Middle market firms, some that specialize only in private equity, have been an
active participant in this business. Bigger private equity firms used their funds to buy
distressed public companies, then take them private with the goal of turning them
around. They then bring them public in an average of five years later, hoping to reap
a big return in the process. Middle market firms invest in privately held midsized
companies.
Consider that leading buyout firms like The Blackstone Group and Kohlberg Kravis
Roberts & Co. have spent the past decade snapping up publicly traded companies,
aiming to quickly sell them at higher prices. Middle market private equity firms have
done just the opposite. Instead, these firms tend to look for growing private
businesses that need capital for further expansion. And, unlike the bigger private
equity firms, middle market buyout shops also tend to buy companies within their
area of expertise. For instance, one that specializes in health care companies wont
go outside the box and sink money into an auto supplies manufacturer.
The fortunes of this more modest segment of the private equity business are also not
entirely dependent on the credit markets. Certainly, free-flowing credit that financed
the M&A boom a few years ago has dried up. Both big and small private equity firms
are having more difficulty raising money to make investments. Major banks, for the
most part, have pulled back from lending the billions of dollars that firms like KKR
and Blackstone need to buy a company. But these lenders are much more open to
bankrolling less-expensive middle market transactions. In some cases, some
midsized companies are being acquired mostly or entirely without any debt at all.

23

A recent deal
And one recent deal highlights that investors are still willing to put money into private
equity funds. Babson Capital Management LLC, an investment management firm
based in Boston, Mass., announced late in 2008 that it closed a $1.58 billion
mezzanine and private equity fund. Investors include domestic and international
corporate and public pension plans, insurance companies, banks, high-net-worth
individuals and families, and funds of funds.
The fund will invest in companies in the small end of the middle market, or
companies with enterprise values of less than $200 million. "We are pleased that the
fund is now fully committed and able to take advantage of the growing investment
opportunities in this niche area of the market," said Mike Hermsen, managing
director of Babson Capital.
Targeted expertise
Once the M&A market begins to regain strength, analysts believe much of the
business might be thrown to smaller firms like Babson with more expertise in a
particular field. Their experience might help put smarter deals together, and that will
also bring middle market investment banks with private equity businesses to the
forefront. These firms have been able to keep investing throughout the downturn,
though at a slower pace, while the big investment banks have been pretty much
sidelined. The portfolio of companies that middle market private equity shops hold
are also less likely to contain companies acquired by excessive prices and debt.
Limited cash flow

Researcher GF Data Resources tracks 104 middle market firms throughout the U.S.,
and found that deals in 2008 were on par with the prior year. The firm reported that
merger and acquisition deals worth $10 million to $250 million were holding up at
2007's levels until the last two months, but plunged once the stock market began
sliding in September. Meanwhile, deal financing loans are getting scarcer, but are
still available for smaller deals.
"Cash flow lending is almost impossible to come by" from major banks, while regional
and community banks are stepping up to fill in part of the gap, said co-owner Andrew
T. Greenberg. Attractive deals for strong companies are still getting done, and sale
prices haven't yet fallen, but marginal deals with weaker companies are getting
"pulled back," and those banks still lending are charging more.
Transactions that pass the $5 billion mark sharply declined in 2008. There were 13
in the first half of 2007 and two in the second half, according to Thomson Reuters
data. However, there were none in 2008. This shows that middle market firms may
suffer less than their larger rivals from losses on the acquisitions they made during
the boom period. The big private equity firms bought public companies whose stock
24

prices soared during the last bull market, while middle market shops specialized in
more reasonably price buyouts.
Opportunities remain
Meanwhile, the latest twice-yearly survey of middle market merger professionals by
the Association for Corporate Growth and Thomson Reuters revealed that there are
opportunities for private equity that will come despite the downtrend. The sectors that
will experience the most M&A activity in the next six months, dealmakers are most
bullish on: financial services, health care/life sciences, energy, manufacturing and
distribution. The results of this years M&A survey were quite sobering with our local
ACG members (corporate and capital providers alike) not being exempt from these
difficult times, said Sonny Williams, ACG Raleigh Durham Chapter president and
managing partner of High Rock Partners, Inc. All are diligently reviewing business
models [that] evolved during the hyperactive M&A market preceding this downturn.
However, astute firms and business leaders are refusing to get caught up in the
malaise aggressively seeking ways and ideas to adjust their businesses to capture
opportunities allowing them to exit this difficult period stronger than when they went
in.
He said there are opportunities to improve the capital structure of companies in the
coming months. While more challenging, there are also transaction opportunities for
the healthier firms.

25
GETTING
HIRED
Education and Internships

Preparing for the Search
Acing the Interview
28

Chapter 5
It used to be that an Ivy League education at a prestigious business school was
enough to land a well-paying job at one of the worlds illustrious financial institutions.
That first banking job was transformative, giving new hires the fat salary, four-week
vacation and big year-end bonus for which Wall Street is known. Banks like Morgan
Stanley and Goldman Sachs would literally hire hundreds of junior bankers each year
during the Bull Run, expanding not just in the U.S. but abroad. As one investment
banker put it, the last four years or so was the age of wine and roses. But, the
financial crisis has essentially put a cork in that bottle and left more thorns than petals
on the flower. Getting in the door these days means candidates must not only be
aggressive, but also demonstrate they have the ability to master all facets of the
industry.
While middle market firms are hiring, not all candidates are right for the job. Some
Harvard graduates who spent years in school learning how to prepare sophisticated
business models for opaque investment strategies probably wont fare that well in the
interviewing process. But, a well-rounded candidate no matter the education is
going to catch the eye of any middle market player. These firms operate with leaner
staffs, where bankers must be able to juggle a variety of tasks. So, you can forget
about getting a personal assistant to fetch the coffee or a clerk to handle your
photocopying. Jobs at middle market firms require you to know all facets of the
business, from analyzing potential takeover targets to working on financing plans to
hammering out a deal in boardroom negotiations.
The CEOs of middle market firms say they are looking for candidates that are still
willing to learn no matter how many graduate degrees they have. Thats a big positive
for anybody who doesnt have a high finance background, yet instead possesses a
can-do attitude and an ability to pick up new things fast.
EDUCATIONAL REQUIREMENTS
Just like major investment banks, those in the middle market require that bankers
and analysts have a college degree. Thats pretty much a standard for the industry,
with very few exceptions. Candidates armed with a bachelors degree, usually linked
to finance, can get an entry-level job at an investment bank. Those that extend their
education with an MBA also have entry-level opportunities, though at a higher level
than recent college graduates.
Undergraduates
Most middle market investment banks are looking for some kind of an undergraduate
business or economics degree. That doesnt mean other bright candidates will be
turned down flat if they possess something outside the box. For instance, a middle
market firm that specializes in doing business with retail companies might find use
29

for an applicant with a related background. And, those that have a finance-oriented
background also should be sure to sprinkle their transcript with some liberal arts
classes to widen their appeal. So much of the investment banking world is based on
building relationships, and a candidate that spent four years of college just looking at
numbers might appear a bit wonkish. That said, recruiters will also be on the hunt
for applicants with a flush background outside of the classroom. A resume that
includes internships, extracurricular activities and any other evidence of selfmotivation will help out immensely. Service-oriented activities and philanthropic
projects can also be important.
Not having an MBA means you might start a bit farther down the ladder than for those
that hold an advanced degree. Having an MBA certainly wont hurt in snagging the
attention of a potential employer. But, it might not be that much of an issue when
applying at middle market firms. Bigger investment banks tend to have multiple
layers of bureaucracy and a rigorous path for advancement. Middle market players,
being smaller, are a bit more willing to bring people onboard with the expectation that
theyll be given intensive training and on-the-job exposure. And thats where having
a diverse amount of experience, solid course work, a strong GPA and a compelling
cover letter comes into play.
MBA graduates
Think of going to graduate school like enrolling in the ROTCwhen it comes time to
join the military, you get to bypass those that enlisted and become an officer.
Certainly, youre not likely to get a vice presidents job with your MBA. You will,
however, be able to jump to a higher entry-level job. Candidates with an advanced
degree on their resume will also get more attention from recruiters, and that cant hurt
during a period when the entire investment banking industry is contracting. Many
recent college graduates have even opted to pursue an MBA as a way to wait out the
financial crisis and then enter Wall Street when times are better.
Having an MBA will also help you capture a bigger salary, and a recent study by
Forbes magazine showed that more than pays for the degree. Those going to Bschool at Stanford will pay about $225,000 in tuition plus the salary you would have
made during the two years in school. Meanwhile, a state resident of Iowa who goes
to the local universitys business school will be out about $90,000. The survey of 85
schools concluded that the extra education paid back quite nicely for the class of
1998, a group that worked through the boom and bust period of Wall Street since
graduation. MBA grads tripled the salary they would have made without their degree
within just five years out of school (annual income growth during that time in the U.S.
was about 2.5 percent, while MBA graduates averaged 11 percent.) The growth also
varies depending on from which school the MBA is obtained. Top-ranked programs
include Northwestern, Stanford University of Chicago, University of Pennsylvania and
UCLAs Anderson School of Business, among others.
30

Further education
Though not needed for entry-level jobs, those aspiring bankers that continue to climb
the ladder at an investment bank might need to secure licenses from the National
Association of Securities Dealers (NASD). The most typical include Series 7, 24 and
63 licenses, which, for the most part, allow investment bank associates to evaluate
and analyze the financial performances of businesses. These licenses also permit
associates to build models of deal structures and prepare presentations for clients.
Most investment banks guide you through what licenses are needed, and often help
prepare you for the exams.
INTERNSHIPS
I opened the doors for you showed you how the system works the value of
information and how to get it! Fulham Oil, Brant Resources, Geodynamics. And
this is how you pay me back, you COCKROACH!
Gordon Gekko, Wall Street (1987)
Having someone like fictional Wall Street tycoon Gordon Gekko help you get into the
business would certainly open lots of doors. But after a few investigations by the
Securities and Exchange Commission, it probably wont pay off. Those looking to
break into investment banking better find other avenues. Internships offer aspiring
bankers an opportunity to get real-time experience and meet industry executives.
Many middle market firms already have an internship program in place, but dont be
discouraged if they dont. Some of the smaller middle market firms might just need
some convincing for an internship candidate who is hungry for experience. The
general rule is that youre either in school or have graduated but are not yet working
full time. Some firms will even consider internship applicants from people with other
backgrounds, such as those making a career switch from another field.
The best way to land an internship is through on-campus recruiters or by calling up
the human resources department at a middle market investment bank. Just like
finding a job, those seeking internships should also search the internet for middle
market firms located near them. For those just starting out, recruiters advise them
not be too picky about the assignment. An aspiring banker looking to wheel and deal
might be wise to work as an intern for an analyst, and an analyst might want to get a
taste of how deals are put together. Just like getting a full-time position, finding the
right internship requires a solid resume, school records and interviewing skills. The
internship programs vary from firm to firm. For instance, bigger middle market
investment banks might have highly structured programs where interns spend most
of their time in classroom-like settings or going from department to department. And,
during the end of the 12-week course, interns typically will work directly with a banker
or a team. Smaller middle market firms might skip the course work and have interns
work almost like an assistant for some real hands-on experience.

31

The biggest advantage to accepting an internship is that employers will take note of
successful interns, and often offer them jobs later down the line. Regardless, it
becomes an invaluable notch in your resume and makes getting an entry-level
position much easier. The experience gives undergrads a ground-level view of the
industry. And, this kind of exposure gives interns a key experience in whether they
want to go into investment banking.
Researching opportunities
Perhaps the biggest hurdle to finding a middle market job is just finding
opportunities. Up until a year ago, most applicants would target the Big Five
investment banks, send their resumes to them and meet recruiters. With Goldman
Sachs and Morgan Stanley as the last two Wall Street names standing, the application
process has become not only more narrow but much more difficult. Those seeking
a job in the industry are expected to increasingly turn to the middle market to get a
position and gain experience, but there are hundreds of these firms spread out across
the nation, meaning they arent all located in major financial centers like New York,
Los Angeles or Charlotte. Boenning & Scattergood, one of Pennsylvanias oldest
regional investment banks, calls the Philadelphia suburb of West Conshohocken
home. Or take Heritage Financial Capital Group in Jacksonville, Florida, or Dominion
Partners in Glen Allen, Virginia. All of these firms have carved out a niche in the
industry, serving not just the regions where they are located but the industries that
thrive there. That means job seekers need to do a bit of research to determine which
middle market players to target, and more importantly what they are looking for.
32

Chapter 6
COVER LETTER AND RESUME

The next and most crucial step to a career in middle market investment banking is
putting together a winning resume that will catch the attention of recruiters. The old
adage that first impressions last certainly applies here. Investment banks big and
small are inundated with resumes every year. So keeping yours tightly written and
professional could mean the difference between nailing an interview and ending up
in some dusty file cabinet for consideration at a later time.
15 seconds to make an impression
At bigger firms, analysts and associates will sift through the resumes that come in and
forward the stronger candidates to someone above a vice president level. Smaller
firms might use a human resources person to weed out the good resumes from the
bad ones. And dont expect these folks to spend hours reading over your experience
and pondering exactly how good of a fit you might be. The average amount of time
their eyes hit your resume is anywhere from 15 to 30 seconds. So your pitch better
be spot on. The first thing candidates need to do is highlight any business or finance
experience they might have, even if they worked as a bank teller one summer or
answered phones at a local brokerage office. If you have no practical experience,
then play up high any college studies done that relate to finance. This is especially
important if youve attended any of the nations major business schools. Investment
banks are looking for any candidates that have any kind of financial background, and
those are the resumes that typically make it past that 30-second glance.
Investment bankers are looking for resumes that popsomething that catches their
attention quickly. Of course, that doesnt mean you should sabotage your chances
by printing your resume on yellow paper or lead off by highlighting your experience
as a short-order cook at a fast-food joint. Be tactical. The first 10 lines or so of your
resume needs to show that you have the education, training or work experience to do
the job. That doesnt mean the rest of the resume can be filled with flowery prose
and superfluous words. Recruiters want to see these resumes tightly written, never
more than two pages (though some on Wall Street believe one page is better). The
rest of the resume needs to be packed with details that show you are motivated,
which means including experience in things like charity work, public service or
serving as a campus leader.
Cover letter caveats

Your cover letter should never be more than three paragraphs, and serves as an
introduction to your resume. Many times these letters arent even read, as recruiters
scan resumes first. But, the cover letter is still a way to summarize who you are and
what you are looking for. Think about why you want a job in middle market
investment banking, and how your skills will apply to such work. Since many of these
33

firms are regional or track a specific industry, it is a good idea to play up any pertinent
experience. For instance, highlight the fact that you grew up in Massachusetts and
are, therefore, familiar with the areas biotechnology industry if applying to a Bostonbased firm that specializes in that industry.
Remember that potential employers are looking for teamwork and an entrepreneurial
drive. If youre attending a job fair on campus, you might not necessarily have to
present a cover letter but its good to have one just in case.
Identifying your target
Before sending your package out, theres one last thing to remember. Try not to send
it blindly. Starting off your cover letter with Dear Human Resources Department is
a surefire way to get tossed into the dont hire bin. It demonstrates that you dont
do your homework and lack motivation. Jump on the internet, find the companys
website and identify who the right person is that handles recruiting. If you cant find
anything, pick up the phone. And, as a last resort, address your resume to the chief
executive or managing partner.
34

SAMPLE COVER LETTER

Mr. Herbert Hoover
Vice President of Recruiting
Eichacker & Smith LLC
100 Skyscraper Road, Suite 300
Indianapolis, IN 46201
Dear Mr. Hoover:
I am writing to apply for a position as a junior analyst at Eichacker & Smith, and
believe I have the qualifications and motivation youre looking for in a strong
candidate. The reason I want to join your team is, above everything else, to learn
everything I can about the middle market business. Ive worked hard at my academic
career, but believe there is more to me than just the degree on my wall and my GPA.
I want to point out my 12-week internship at Gemini Partners, leadership on Cal State
Economics Society, and obtaining a junior management position at Macys while
working my way through school. But Im most proud of my work as a volunteer at the
local Big Brothers Big Sisters program. I know this doesnt count as high finance, but
it certainly demonstrates dedication in the things that I believe in. Volunteering has
not only given me a strong sense of self, but developed interpersonal skills and drive
to help get a job done.
As a junior analyst, I want to direct that same kind of discipline and dedication to
serving clients. Ive been successful in my internship, work in retail, volunteering, and
education. Now I want to be successful working for Eichacker & Smith.
Thanks for your time and consideration. I look forward to your reply.
Sincerely,
Hayden Berg

35

SAMPLE RESUME
Hayden Berg
23 Revere Drive Los Angeles, CA 92714
213-555-1212 hberg@email.com
OBJECTIVE
To gain an analyst-level position, with the opportunity for advancement and growth at an
investment banking firm.
EDUCATION
California Sate University, Los Angeles, CA
Bachelor of Arts in economics, with a minor in accounting, May 2007
Current GPA: 3.2
Major GPA: 3.7
EXPERIENCE
Intern, Gemini Partners, Los Angeles, May to August 2008

Learned the inner workings of a private equity firm during a 12-week internship.
Assisted analysts and associates in creating research and meeting materials
for clients.
Researched areas including real estate investment trusts, real estate tax law,
fixed-income instruments and equities.
Member, California State Economics Society, September 2006 to present

Helped put together a quarterly journal of popular economics, which reports on
developments in the subject to a broad audience.
Managed all club meetings and activities, along with the clubs relationship with the
Chancellors office.
Assistant Manager, Macys, South Coast Plaza, Costa Mesa, CA., Summer 2006
and 2007
Served as the No. 2 manager in the mens department of one of the biggest Macys stores
in the West.
Managed employees, schedules and day-to-day operations of the department and assisted
with budgeting and purchasing.
Handled customer inquiries and complaints.
Mentor, Big Brothers Big Sisters program, Irvine, CA, 2004 to present
Served as a big sister to three teens from broken homes, helping with homework and
providing a positive role model.
Marketed the program to the greater Orange County and Los Angeles areas.
Aided in creating the program budget over the last two fiscal years.
SKILLS
Proficient in all Microsoft Office products and most major financial database software. Fluent
in Spanish, and can speak French acceptably.
36

Unlike cover letters for some other jobs, dont say youre going to call the
employer to follow up. Ask your recruiter about it, but frankly, if youre good
enough, theyll call you; never fear. They have enough going on without you
ringing the phone constantly. The recruiter will serve as a fine contact for that
sort of thing
HEADHUNTERS
Many investment banks hire recruiting firms to help identify candidates. These firms
have flourished in years past because jobs in the financial services field tend to be
higher paying. And recruiters collect their job finding fees based on the
compensation package of the person who they get hired. So, in addition to sending
your resume and cover letter to investment banks, you might want to identify
recruiters willing to consider you as a potential candidate for future jobs.
Heres a list of headhunters around the country that specialize in finding banking and
finance jobs:
Advanced Market Group Inc.
www.amgi.com
Geneva Financial Group
www.genevafinancial.com
National Bank & Finance Executive Search
www.nbfsearch.com
Sterling Staffing
www.sterlingstaffing.net
Cannellos-Smartt Associates
csa-search.com
Objective Paradigm
www.opexecutivesearch.com
CTPartners
www.ctnet.com
The EMAC Group
theemacgroup.com
Financial Recruiters
finrecruiters.com

37

Ramer Search Consultants

www.ramergroup.com
Allen And Associates
www.allenandassociates.com
Analytic Recruiting
www.analyticrecruiting.com
Employment Atlanta
www.employmentatlanta.com
BancForce
www.bancforce.com
BFL Associates
www.bflassociates.com
Brokerage Consultants
www.brokerageconsultants.com
Capital Search Group
www.capitalsearchgroup.com
Coffou-Kanzer & Associates
www.coffou.com
DM Stone
www.dmstone.com
Drum Corps
www.drum2000.com
Granite Solutions Group

www.granitesolutionsgroupe.com
HFC Executive Search
www.hfcsearch.com
Kunin Associates
www.kuninassociates.com
Michelangelo Recruitment
www.michelangelo.co.uk
MRI The Boston Group
www.boston-mri.com
Personnel Consulting Associates
www.pcasearch.com
38

Rainier Management Group

www.rainier-inc.com
Teeman, Perley, Gilmartin
www.tpgsearch.com
The Edgewater Group
www.edgewatergroup.com
Wall Street Services
www.wallstreetservices.com
Harris & Associates

www.harrisandassociates.com

39
Acing the Interview

Chapter 7
The cover letters been written. The resume has been polished and sent out to
dozens of middle market firms looking for a bright, young star. Now you play the
waiting game. Dont bother picking up the phone to make sure you have a dial tone
in case a call was missed. And checking your e-mail for some kind of reply every few
minutes isnt going to help either. Like applying for any new job, it is a game of
patience and persistence. Sure, you should follow up your application within a week
or so to make sure they got it. But after that, it is up to the recruiters or human
resource departments to put your resume into the right hands. Unless you know
someone on the inside of the firm thats willing to talk you up, just wait for them to
reach out. Even in a bad economy, a sharp resume and well-written cover letter will
get you the all-important invitation for an interview.
Your phone personality
When that phone call (or email) finally does come in, your first exposure to the middle
market firm will likely be quite informal. Consider the old saying that time is money
because your first contact will likely consist of a brief telephone interview. As part of
the process of hiring, they want to connect a voice to the resume before them. They
want to know if your personality over the phone especially in an industry where
theres lots of legwork done on the telephone is worth setting up a face-to-face
meeting. These will typically be more softball questions as the firm tries to determine
your experience. Be prepared to quickly give them a rundown of what youre looking
for. Offer a brief synopsis of your skills and track record.
And, above anything, try to sound motivated for a job in the middle market. Saying
Im only applying at this firm until I can bide my time and go work for Goldman
Sachs, probably isnt a good way to start things off. Yes, they know you want to work
in the big leagues, just like everyone else. Remember that these firms were started
by entrepreneurial bankers who found incredible earnings potential in focusing on
midsized companies instead of cobbling together deals for Fortune 500 members.
You want to explain that this is a niche that you would not only thrive in, but exceed.
The last bit of advice for these telephone interviews is to not gush too much about
yourself. Nobody wants to listen to a 10-minute answer that could have been
summed up in much less time. But dont be so brief that youre giving two word
answers. Theres a delicate balance between too much and not enough and it is your
job to find that happy medium. Your mission is to intrigue them enough with your
background to make them want to meet you in person. Keep these four things in
mind about what these firms are trying to glean out of the conversation:
Can the candidate get the job done?

Will the candidate make sound decisions?
Does the candidate know the demands of the firm and job?
Is this someone who the already existing team will get along with on a personal
level?
41

Acing the Interview
After these telephone interviews, the person in charge of setting up meetings will sift
through all the resumes to determine who gets an invitation to come into the office.
If thats you, congratulations you made it through the preliminary round of a very
long process. It might take up to six months to get a job offer if youre applying for a
junior analyst position, and thats pretty standard across the entire industry. Middle
market firms, which have fewer layers of bureaucracy, might be a bit faster than the
bigger firms. The interviewing process for a 12-month junior analyst slot typically
begins in February, with an offer coming by the summer. If hired, the job wont start
until September and will last through the same month a year later. If youre gunning
for an associate spot, the start date wont be as rigid. And the timeframe for all other
positions will simply depend on when the firm needs someone onboard.
STUDYING UP
Dont expect your first face-to-face interview to end with a job offer and application
for an American Express corporate card. Youll likely have about three rounds of
meetings, working your way from a senior analyst all the way up to the middle market
firms chief executive or managing director. This means that preparing for your
interview is crucial. Just because you have a fancy business degree in economics or
some other high finance curriculum doesnt put you in the pole position for a job. You
need to be ready to discuss the industry at length, and back up your answers with
real industry examples and supporting data. The same kind of industry knowledge is
demanded whether you are applying for a job as a research analyst or are on an
investment banking track.
That means you have to study up before an interview. And that doesnt mean going
over your curriculum from the last semester you took that focused on investment
banking. Middle market firms are a very unique breed on Wall Street. They demand
you to be thoroughly familiar with a particular region or industry, but also have a
broader grasp on the entire spectrum of companies that fuels commerce. Major
business newspapers often describe the market as a living, breathing entity. Youll
often see phrases like the market feels when the Dow Jones industrial average
jumps or plunges 200 points. Corporations and industries interact much like the
environment. Global warming might heat up a lake, kill off the algae, which cuts off
the bottom part of the food chain for fish, which hurts the fishing industry, which
makes salmon harder to find at your local market, etc. In the corporate world, a
recession causes less demand for automobiles, which in turn means the Big Three
Detroit carmakers cut back expenses, which results in hard times for everyone from
auto parts makers to the car insurance industry. Its all relative, and the ability to have
a broad knowledge base about all different kind of industries will make you an even
more valuable hire. Hard times for an auto parts maker might create an industry ripe
for consolidation, and that kind of insight during an interview is crucial.
42

Acing the Interview
Certainly, no potential employer expects you to have a photographic memory of all

things business. But, that shouldnt prevent you from being as well versed in the
current business climate as possible. Heres what you need to know to stay on top of
things:
The Wall Street Journal. Thats the nations business bible, and you should read it
or, at the very least, skim through it for stories of interest on a daily basis. Pay
specific attention to the Heard On The Street column that is run every day, which
is a Wall Street standard. And, while online, preuse the WSJs various blogs like
Marketbeat and Deal Journal.
www.wsj.com
The Financial Times is a London-based paper that covers U.S. business quite
intensively. Given that todays business environment is becoming increasingly
global, this is a good publication to get a more international glimpse into finance.
Pay attention to the Lex Column, which is well read by the investment banking
community.
www.ft.com
Yahoo! Finance is a good way to get a real-time view of business on not just a daily
basis, but by the hour. This site, which aggregates news stories from a variety of
media outlets, is well used by traders and bankers alike.
finance.yahoo.com
The Daily Deal is a trade publication followed closely by Wall Street. It covers M&A,
private equity, venture capital financings, bankruptcies and other topics of interest.
It was launched in 1999 and bankrolled by Bruce Wasserstein, a major force in the
investment banking world whose name anchored such M&A powerhouses as
Wasserstein, Perella & Co. and Dresdner Kleinwort Wasserstein.
www.thedeal.com
There are also dozens of news outlets that will give you a regional glimpse of
business if youre applying at a middle market firm. Each major city has a business
journal to record the comings and goings of finance in those areas. A quick search
of the internet should find the one you want. If not, check out popular sites like
American City Business Journals (www.bizjournals.com) or Crains Business
(www.crains.com).
More news about investment banking can be found on the blogosphere or from
business-oriented websites. An internet search might find you the site that will
apply for a specific job youre interested in. Others are more general. For example,
one popular Wall Street blog is Deal Breaker (www.dealbreaker.com).
If the middle market firm you are applying for specializes in a specific industry, poke
around for blogs or other websites that cater to those sectors. For instance, if youre
interviewing at a technology-based firm, check out sites like C-Net (www.cnet.com)
or Red Herring (www.redherring.com). Every sector has some little corner of the
internet where business turns for information and viewpoints.

43

Acing the Interview
As they say, information is power, and you want to have as much in your arsenal when
you sit across a desk from someone that might be in the position to offer that allimportant job. You certainly dont need to memorize every deal thats come through
the pipeline in the past year, but being able to cite some fresh examples of the
industry will go a long way demonstrating to any potential employer that youre ready
for the job. After all, the vice president leading the group you want to be hired into
is counting on his staff to be his eyes and ears for the latest industry trends or sectors
ripe for takeovers.
THE INTERVIEW
Studying up before your first and future interviews is an important first step. Being
well prepared is a key. Youll also need to be relaxed and get a good nights sleep
before the big day. But, there are some other ways you can prepare for the interview.
Anticipating some of the questions and formulating your own to ask the interviewer
are two ways to stay a step ahead. Certainly dont expect your interview to transpire
exactly verbatim to what is written here.
Theres a certain framework that will be true for all initial interviews, no matter what
kind of job youre pursuing. Bankers want details, starting with everything and
anything about their candidates that might help them make a smart decision. The
objective is to be as concise and to the point with your answers as you can without
leaving any gaps.
The breakdown
Here are some of the basics:
The routine
1.Provide your GPA, and be prepared to go through your course history and what
classes interested you the most.
2. Some firms will require that youve taken a Graduate Management Admission Test
(GMAT) before they will formally consider you as a hire. Be prepared to provide
your scores.
3. Many interviewers will want you to defend why you chose to follow your academic
course. So if you have a minor in art history, think about how you want to frame
your answer.
4. Be ready to explain any of your college-related activities, such as clubs or
organizations you belonged to.
44

Acing the Interview
The resume
1. Youll be asked to walk the interviewer through your resume. Make sure to
accentuate the parts that matter most.
2. The interviewer might want you to explain some of your choices. That summer job
at the fast-food restaurant might not seem like high finance, but turn it into an
asset and explain how it showed you the value of hard work.
3. Be prepared to explain any gaps.
The career path
1. Any middle market firm will want to know why this style of investment banking fits
into your goals?
2. Are you committed to sticking with this industry, and how would you grow into the
job and within the firm?
3. Show your knowledge of the industry.
Your choice
1. Youll be asked exactly why youve targeted this firm for a job.
2. The firm will also want you to provide knowledge of some of the recent business
theyve done, and an overview of what you know about them.
c) Get ready to answer how youll be a good fit. That might relate to the geography
the firm covers, or perhaps its specialization, etc.
Behavioral
1. What are your strengths? This gives you a chance to go back and explain a point
in your resume that might be seen as an asset.
2. What are your weaknesses? Dont be afraid of this question. Nobodys perfect.
Use this as an opportunity to reveal a mistake (make sure its not too much of a
doozey) and explain how you learned from it.
3. Theyll want you to talk about teamwork and your leadership abilities.
4. Then there are questions about who you are as a person, how outgoing you are,
and perhaps even what your hobbies are. Certainly, show that you are moneyoriented but not a complete stiff. Remember that investment banking, at all levels,
is personality-driven.
Technical
1. Research questions
2. Investment banking questions

45

Acing the Interview
Your turn to ask questions

1.
2.
3.
4.
Show youre interested by asking questions about the job and the firm.
Find out what the interviewer likes and dislikes about your application.
Find out what kind of experience would be beneficial for the job.
Use this opportunity to talk about an industry, story or topic you feel most well
versed in.
SAMPLE QUESTIONS
Think of the interview as a chess game (or even a game of checkers if thats more
your style). The interviewer has tossed these very same questions out to dozens of
candidates in just the past few weeks, hundreds over the years. Theyve heard all the
answers, and both the good and bad probably stick out in their minds. In many
cases, even the most detailed and well-thought-out answers can fall flat. Were not
looking for the candidates that think they know it all, were looking for the ones willing
to learn it all, said one executive at a middle market firm.
Universally, on Wall Street, the interview process includes some fairly broad questions
to gauge your knowledge of the financial sector. Theyll also throw some specific
questions your way, most likely on a specific industry or maybe a recently completed
acquisition that made headlines. They want to test your financial acumen. Youll also
be given some situational questions to see what you might do when working on a
potential deal. Here are 10 questions you most likely will encounter during that first
interview:
1. Why are you interested in working at a regional middle market firm instead of going
to one of the big New York players?
As discussed previously, this is a chance for you to explain why middle market
firms offer expertise that cant be found at a bigger investment bank. Youll most
likely want to explain how a smaller firm will offer more varied experience and more
hands-on opportunities.
2. This firm isnt going to hand you a big expense account and the fast Wall Street
lifestyle, what can you learn from it? How will you fit in?
Dont even think about explaining how youre willing to give up your two-martini
client lunches. You want to highlight that this first job is about learning as much
as you can from those farther along in the industry. This is your ground-floor
opportunity, and that youll fit in through a hard work ethic, verve, panache and
lan.
3. Give me some examples of why your background will make a good fit with a firm
focused on regional companies/specific sectors?
The interviewer obviously has a copy of your resume and cover letter in front of
him. So this is an opportunity to highlight some of the areas in your experience
that make you the perfect choice for a middle market job. For instance, here is
46

Acing the Interview
where you want to explain how your years of working retail jobs makes you a good
fit to analyze potential acquisitions in that industry. Or that growing up and
attending school in Texas has given you an institutional knowledge of the oil
industry without ever stepping foot on an oilfield.
4. Why did you pick your specific university or educational program?
Be prepared to explain your reasons, but this isnt the kind of question that will
merit a long and detailed answer.
5. Explain how your education has prepared you for a career in investment banking?
List classes youve taken that jibes with finance?
This is a pretty self-explanatory question that begs a very straightforward answer.
Be prepared to go through those classes you took that are relevant to finance. But
also dont feel intimidated to bring up something unique that might capture the
interviewers attention.
6. What would make you a better investment banker rather than a corporate analyst?
Or vice versa.
You want to be as well rounded as possible. So answer this question as honestly
as possible. Theres no need to bend your skills one way or another because the
interviewer will soon catch on to what youre cut out for. But one thing is common
on Wall Street and Main Street, be aggressive in explaining your case if you feel
passionately about one job or another.
7. Are you ready to work long hours?
The secret to this question is to be enthusiastic without making yourself sound like
a martyr. Managing directors, in general, require really three basic things from
their first-year employees: that youre at your desk before they come in, that you
work your heart out but do not outshine them, and that youre at your desk when
they leave at night. Assure them of those basic principles, and you wont go wrong.
Long hours are just part of the job.
8. Sell yourself to me in two minutes. Why should we hire you? What distinguishes
you from your peers interviewing here?
Just as if youre in a pitch meeting with a client, youve only got so much time to
nail the deal. This is the same thing. As discussed earlier in the book, these
interviewers are looking for personality and aptitude ahead of even the fanciest of
resumes. Many of these middle markets are small, so the goal is to find someone
with the right fit the right mix of education, experience and personality. This is
your chance to show them you are that someone. This is where you might bring
up any personal experiences that demonstrate your dedication and ability for
leadership. They want to see drive.

47

Acing the Interview
9. What is your greatest strength? Your greatest weakness?

This is a fairly standard question for any interview. The key to this one is to spin
a weakness in a positive way. Perhaps it is some mistake youve made in life or in
business that taught you a lesson. Show that that youre willing to learn. As for
your biggest strength, modestly is the key.
10. Detail your path through investment banking. Where do you see yourself in five
years? Ten years?
Youve probably gone over this question in your head before you typed your name
on top of your resume or finished your first finance class. The world of finance
offers a million different roads to travel. Investment bankers at middle market
firms might go on to become entrepreneurs themselves, or move on to a bigger
international firm. You might want to start your own firm, or go work for a private
equity firm. You might have a sense already about what you want to do. But
there really is no right or wrong answer here. Just keep in mind that first jobs in
any industry are really an opportunity to get your feet wet. Its a chance to
understand more about a career in the field, and learn the ropes. Explain that you
want to voraciously learn every inch of investment banking, from dealing with
clients to modeling acquisition targets, and see what comes naturally.
EXPERTISE QUESTIONS
Any middle market interviewer will assume that youre already a student of the
industry. Youve studied the league tables that rank the worlds biggest investment
banks. You know in which regions of the world that deals are flourishing, and what
sectors are hot. Your finger is on the pulse of not just one industry, but on all of them
and how they relate to one another. They are also going to assume that youve paid
attention in class, know your way around a corporate balance sheet, and have the
skills it takes to analyze what company is ripe for a takeover as opposed to the ones
that arent.
This is where all of your internship experience and classroom hours will come into
play. Most interviewers are going to throw you an expertise question that will not only
show them if youre up on the industry, but also if you know some of the basic skills
for the job. The kinds of questions will depend on the type of firm to which youre
applying. It might be a private equity question, or one that focuses on a companys
earnings. The answers will be used to determine how honed your skills are at such
an early stage in your career.
Here are a few examples:
What industry areas do you find interesting?
Do some research: first off, identify the niche in which the middle market firm you are
interviewing at does business. Then study up. If the firm focuses mostly on
technology companies in the Boston area, be ready to name the biggest public and
48

Acing the Interview
private firms operating there. Do some digging on the local business journals website
and brush up on some of the biggest deals that have come through the pipeline. If
a particular company interests you, bone up on the CEO and what some of his best
(or worst) moves have been. Any middle market executive wants to see if you know
where the opportunities are. And further, they want to make sure youve done your
homework. All the answers you need are just a mouse click away.
One of my clients wants to buy a rival to expand distribution and cut costs. Would
this companys balance sheet indicate a good fit or a bad one?
Paying attention during classes and listening to mentors whove guided you during
internships will pay off at this point. You should already know how to read a balance
sheet and be able to breeze through any earnings statement. Be ready to figure out
the companys sales volume, their price-to-earnings ratio, and be ready to provide the
multiples. Use a model to project the company's free cash flows provided by
operations for about 10 years. Be ready to discuss the liquidation value of all assets
and liabilities. Explain how youd look for transactions involving peer companies, and
use them to model how much a buyer might end up paying. This is where all of your
skills come into play.
When you evaluate a potential deal, beyond just the numbers, whats the most critical
element you look for?
Obviously, you want to have a good grip on how the target company is currently being
managed, and what improvements could be made by bringing in new leadership.
Youll also want to be able to analyze market opportunity, and how well the companys
products are doing in the marketplace. Companies with a strong-minded and
independent management might be a bit unwilling to do a deal, so youll need to really
get to know who runs the company even if youve never meet them in person. Things
like market opportunity must also exist since, at the end of the day, sales drive profits.
And, youd better know the products they sell or the technology they build. Knowing
a deal inside and out is the impression you want to leave upon the interviewer, and
be able to provide some real examples.

49
ON THE
JOB
Career Paths, Compensation and Lifestyle

Days in the Life
52
Career Paths, Compensation and

Lifestyle
Chapter 8
THE JOBS
The dictionary defines investment as laying out money or capital in an enterprise
with the expectation of profit. And, the bankers are the ones that get the job done,
whether its for an individual investor looking to save for retirement or a multinational
company looking to put money to good use through a big M&A deal. The concept is
still the same. It is the investment bankers job to understand market forces and the
economy in advising clients on a variety of financial matters. Thats not any different
from the wide range of middle market firms that advise their clients on every facet of
their business strategy. It might mean convincing companies on the issuance of stock
or overseeing a potential initial public offering. Investment bankers also analyze the
potential execution of a takeover or a private equity deal.
A career in investment banking pulls together a variety of skills, with communication,
creativity, analysis, initiative and people skills among the biggest demands. That kind
of versatility and broad knowledge can provide the extra edge for getting hired. The
career path at investment banks big and small tend not to differ (though, middle
market firms typically offer advancement at a faster pace with more hands-on
experience). During the course of a career, an investment banker might start off
crunching numbers as a junior analyst to one day supervising an entire team of
dealmakers as a managing director. The key is that the more a banker knows about
the field or the company they are hired by, the higher the chances of success.
Analyst
If youre just starting out in the investment banking world, get ready for the fun-filled
lifestyle of a Wall Street analyst. These are the grunt jobs typically given to recent
undergraduates. Be prepared to work long hours, master the art of Excel
spreadsheets, keep schedules, generate prospectuses, be a business newshound
and spend lots of time on the phone with clients. These jobs tend to run from firstyear analysts to third-year analysts, at which point youre able to be promoted to the
associate level. After two years, most analysts leave to get their MBA or pursue other
positions. It all depends on the firm. Some places have a pretty strict policy of getting
rid of you, while others are more relaxed about it.
The duties of an analyst depend on what track youre on. For those looking to be
dealmakers, analysts serve as the support staff. They provide analysis for investment
bankers looking to put deals together, like helping to write pitch books. Many banks
offer one-year training programs in which first-year analysts attend courses covering
topics such as accounting, financial analysis, deal structuring, product knowledge
and professional development. If you get one of these jobs, youll cycle through
different aspects of the job in a rotation that might include corporate banking, capital
53

markets or working on product-focused groups. This provides an opportunity to hone

your financial analysis skills, gain an understanding of the markets and client needs,
and build expertise in areas like corporate finance or M&A. Dont expect much
money in this first stage of your career. Starting salaries range from around $50,000
to $70,000 annually, and bonuses are lighter than those given to investment bankers.
But, it also gives you an opportunity to network, observe and participate.
For research analysts, the title might stick for your entire career but the pay can only
go higher. These positions do nothing but analyze companies, picking apart
everything from corporate earnings reports to new product rollouts. They put together
research reports that help advise everyone from individual investors to institutions,
stating whether these companies are worth investing money into them. For middle
market firms, most of their research capabilities are focused on small-cap to midsized
companies. These analysts might start out with salaries of about $75,000. But as
these analysts get promotions to titles like associate, vice president or managing
director, the compensation will skyrocket.
Associate
The next rank up is the associate, or investment banker title for most firms. These
are the folks who work with clients and identify new business. This is considered a
very entrepreneurial job, the area of an investment banks business that helps to
generate the most fees. Like analyst jobs, these positions run from first-year
associates to third-year associates at most of the bigger middle market firms. At
smaller ones, expect this class of job to run about a year. These also tend to be the
entry-level positions for those possessing MBAs, bypassing the title of analyst. But
no matter how you get into the job, the experience is pretty much the same. This is
the real launching point of an investment banking career where associates get a
chance to prove their negotiating skills.
At a middle market firm, youd be assigned to work closely with corporate clients in
developing their business strategy. These companies might want a big private equity
investment, or they decide the time is right to make a transformative acquisition.
Either way, youll be on a team that comes up with the advice and the plan. Youll
use the analysts ranked below you to come up with the data, but the real
responsibility falls upon the associates who are trying to make a name for themselves.
The final decision is certainly not yours, and your input stays internal. An associate,
in many ways, is really considered to be an expert analyst. The job is high stress
for those just starting out, and provides a chance to prove your worth crucial for
advancement.
The next stop is assistant vice president, or even vice president. Until then, you have
to demonstrate an expert ability to make valuations, push spreadsheets through,
connect with clients and deal with corporate egos. At this point, the associate also
needs to be a master at networking both within the middle market firm and with key
clients. Youve really made it if you become an associate. It provides the chance to
prove you have what it takes to succeed in investment banking. This job means you
54

are only a few years away from getting your own clients, initiating your own deals and
making some good money. The salary that middle market firms are willing to pay is
between $70,000 and $120,000.
Vice president
Getting this title at a major bulge-bracket firm is actually easy. Each year, thousands
of bankers across Wall Street get VP printed on their business cards because it is
mostly a ceremonial title. Theyve put in the time and have the experience to
graduate from the associate level. This is a much tougher feat at middle market firms,
which might count 100 or so employees among its ranks. After about five years or
less as an analyst and associate, a smaller investment bank is likely to offer you this
promotion. That means youve been rewarded for your motivation, skills, and have
been deemed one of the firms most-trusted associates. It also means youve been
placed in a position with more direct client contact, and often oversee a number of
associates and analysts below you.
The upshot is that you might be put in charge of a regional office, or will be overseeing
a large number of clients. Youll be their eyes and ears, dispatching M&A advice and
relying on those who work below you. For that, compensation gets much better.
Middle market firms will pay between $75,000 for an assistant vice president to
$200,000 for a senior vice president. Bonuses also grow depending on how much
business is brought in.
Director/managing director
Finally, after years of service, a successful, entrepreneurial, client-driven VP can be
named a managing director. In these positions, an MD can expect to be in charge of
associates in a major branch office, or even in the firms headquarters. Theyre given
the most high-profile clients, or the problem clients whose money is just too valuable
for the firm to lose. If youve made it this far, then expect a salary of $300,000 and
up. Thats the good news. The bad news is it might take a decade or more to reach
this kind of a gig at a middle market firm. As one investment banker put it, Youve
gotta work if you want to get paid. Indeed.
Heres an example of the skill set one Chicago-based middle market firm recently
advertised for a managing director position. This ad actually serves as the perfect
example of why working from the ground up will provide the best experience for those
looking to make a name for themselves in investment banking. It also demonstrates
that middle market firms zero in on a specific industry, which is a crucial point when
applying for a job. The ad reads: Premier corporate finance and advisory services
firm is seeking an experienced investment banking professional for sector leadership
role. The successful candidate will possess strong marketing and lead origination
skills, while also exhibiting experience in executing M&A and capital-raising
transactions. We are seeking individuals with in-depth expertise in health care or
industrial markets. The candidate should possess: 10+ years investment banking
55

experience; proven ability to originate new business and build referral relationships;
ability to independently manage and execute corporate finance transactions; be
externally aggressive with a sales mentality and a self-starter; internally collegial,
sharing and inclusive; have proven leadership-by-example skills; be entrepreneurial
and have an outside-the-box mentality.
LIFESTYLE
The lifestyle of the investment banking world is legendary.
Take Stephen Schwarzman, a former Lehman Brothers executive who founded
private-equity powerhouse The Blackstone Group. He spent millions of dollars to
celebrate his 60th birthday in style. He hired Rod Stewart as the main attraction, and
Patti LaBelle was on hand to sing Happy Birthday to the banker. The guest list was
a whos who of Hollywood stars, politicians and Wall Street celebrity. John Thain,
former CEO of Merrill Lynch and the New York Stock Exchange, was there. Donald
and Melania Trump, CNBC anchor Maria Bartiromo, televisions Barbara Walters,
medias Tina Brown, former New York Governor George Pataki, and even New York
Cardinal Edward Egan turned out. The birthday party went down as the biggest New
York social event of 2007.
That same year, even those starting out at the bottom rung of the investment banking
ladder appeared to be enjoying the fruits of their labor. A 23-year-old investment
banker named AJ became an internet sensation for a video known as Models and
Bottles. A local New York City television station followed him on a booze-filled night
on the citys party scene. A Thursday night, which he says his fellow financial
analysts call the night we bowl we go top down. This is the work hard, play hard
mentality, and AJ explains in the video that it doesnt hurt to show up with gorgeous
eye candy.
Cutting back
Fast-forward to 2009, and its easy to see that this is Wall Streets past. Investment
banks have not only slashed staff, but have cut the perks. Expense accounts are
scrutinized, and fancy conferences in exotic locales have been scrubbed. The broad
realignment of Wall Street has made the big city banker an endangered species. And
those lucky enough to still have jobs are learning not just to be frugal, but to be much
more humble. The days of wine and roses might be over at least for now. In fact,
many of the Streets biggest bankers arent waiting for a return. There has been a
flood of bankers leaving bigger firms and moving to smaller, niche firms that serve the
middle market.
Were not sure where AJ is today. But, if he took a job at a middle market firm, it can
be assured the lifestyle he hoped to live has been scaled back. Instead of New York
City, he might be living elsewhere: Boston, St. Louis, Dallas and other big American
cities. Hell be focusing more on work than heading to the clubs. His salary is
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probably cut in half but, he is most likely living in a city with a less expensive
standard of living. And still better than being out of work in such in a tight job market.
Extensive travel
Most likely the first job you take at a middle market investment bank will be working
somewhere outside of New York City. But dont think youll be able to avert the kind
of high-paced, hectic lifestyle that comes with working in a big city. The hours wont
be anywhere near 9-to-5. One advantage of working In the Big Apple is that most of
your clients regularly will visit the city, or are located there. The life of a middle market
banker involves extensive travel. It might be spending hours in a car to visit a few
clients in the Midwest, or taking to the skies and hopping from one small airport to
another. Middle market investment banks cater to business spread out around the
country, and specifically ones that arent located near a major metropolitan area.
Being able to respond at a moments notice is also a key to the job. Business isnt
done on a set schedule, but by opportunity. One client located in Indiana might
suddenly find out about a factory up for sale in Arizona, and, on 24-hours notice,
needs a banker to fly out and make a deal happen. Those working at middle market
firms might also manage a portfolio of companies, and that involves plenty of road
trips to meet with management to discuss potential acquisitions or sales. Travel is still
a key to this business despite how much technology makes it easier to network by
using things like video conferencing. But theres something to be said for pressing
the flesh. And, remember, these trips might not all be glamorous. These days, all
companies are clamping down on expenses, so youll probably not be checking into
the Ritz Carlton for a business meeting, though, you certainly wont be staying at a
small, one-star hotel, either.
There are some advantages to traveling for work. Of course, youll have an expense
account and be expected to use it. Taking a client to the best restaurant in town is a
great way to curry favor, get a transaction completed, and win their confidence. One
middle market investment banker joked that he gained 10 pounds on a business trip
to Puerto Rico. He works for a regional firm that specializes in financial services
companies, and flew to San Juan to meet with the CEOs of the islands four biggest
banking companies. Its a pretty small city, and I basically spent two days being
driven to their homes. Well, mansions really. At each stop they had a full meal
prepared, and you just have to eat, he said. It was hard explaining that to my boss,
who at first thought I spent the entire time in my room because there was nothing on
my expense account.
Deadlines and pressure

Traveling for client visits, no matter the mode of transportation, also carries with it
varying levels of stress. Thats a given in the financial world, whether youre stock
broker, portfolio manager or investment banker. With these jobs comes a great
responsibility to safeguard other peoples money, and their livelihoods. For the
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investment banker, there might even be higher levels of stress to orchestrate

multimillion-dollar deals. Many people in the business say this is exactly why they are
in the businessthe rush of getting a transaction done.
Theres also the deadline pressure that comes with a job in high finance. For
instance, be prepared to stay up all night cranking out a proposal. Get used to
pressure from managing directors and others who need models pulled together
because they began negotiations on a deal. There are equal amounts of stress on
the road and in the office. Working on the weekend might also be required. But
many middle market bankers tend to enjoy a bit more quality of life that leaves time
for friends and family.
DIVERSITY
Studies have been completed throughout the years that show Wall Street is shedding
its image as being a mostly white male establishment. For the most part, that
continues to be the casethough great strides have been made to broaden diversify
in staffs. All the major investment banking houses have diversity programs to attract
women and minorities. Anecdotally, that appears to have paid off. Women are
excelling, such as Zoe Cruz, who climbed to become co-president of Morgan Stanley,
and eventually moved on from that firm. Erin Callan was the chief financial officer at
Lehman Brothers before the firm was sold to Barclays Capital. And, Vikram Pandit
rose to the level of CEO at Citigroup.
Middle market firms tend to be leaner, and typically dont have such programs to
attract minority hires. However, considering these firms are smaller, they tend to hire
whoever comes in with the best qualifications. Theres also been a movement by
investment banks big and small to make sure a diverse group of bankers is on hand
for strategic purposes. Business is becoming increasingly more global, with
American companies looking overseas to strike partnerships or make acquisitions.
Having an investment banker familiar with the Chinese culture could open up new
doors in the East. And, even at home, having a diverse staff also helps to attract
minority clients.
COMPENSATION
Anybody seeking a junior analyst position should be looking at a base salary in the
range of S60,000 to $100,000. These salaries vary between firms and the region of
the country in which youre working. Bonuses typically would be 10 percent to 60
percent of salary to start, and can move up to one to three times your salary as you
progress.
As you climb through the company, expect your compensation levels to grow as well
at a high rate. Base pay will typically hover around $100,000 to $150,000 each year.
But seasoned investment bankers consider their base pay to be chump change
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compared to the real payday: the bonus. After about five years on the job, hitting the
level of associate, youll begin to see compensation packages that stretch to nearly
$500,000 or more. Each deal youre instrumental in making will be rewarded with a
higher bonus. Top performing investment bankers can take home more than $1
million a year.
After gaining experience in the middle market, some bankers might begin to consider
taking a leap to a larger investment bank where compensation packages can balloon.
Consider that the average Wall Street CEO, during the boom years earlier this decade,
pulled in $20 million or more a year. Many CEOs like Morgan Stanleys John Mack
have pointed out that they are being paid less than some of their top bankers. Life
on Wall Street can be brutal, causing many bankers to make as much money as
possible at the start of their career and opting to retire before the age of 50.
UPPERS AND DOWNERS

Like any job, there are pros and cons to a career in middle market investment
banking. Here are a few of the most notable uppers and downers for anybody
considering entering the field.
Uppers
Compensation
Admit it. One of the biggest reasons anybody looks into a career in investment
banking, no matter the size of the firm, is for the paycheck. The industry remains
among the most lucrative in the world for compensation, especially when you reach
the managing director level. Considering that middle market firms are scattered
around the country, the salaries can be stretched much farther than they would
living in Manhattan.
Challenge
This is a career that rewards those with a healthy entrepreneurial spirit, the ability
to work without much direction, and anybody that can think outside the box.
Theres no set pattern about how deals are put together, and finding the best way
to please a client and get a deal done can be incredibly gratifying.
The rush
There are two kinds of bankers out there. First, there are the bankers who are just
in it for the money with the realization that every new deal will mean a lucrative
bonus at the end of the year. As Donald Trump says, it is the art of the deal. Then
there are the bankers that get a rush from helping midsized companies achieve
their goals, either through a sale or an acquisition. Those really happy in the
business are the ones that are excited by both.

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Knowledge
Each day is different, just like each client. Taking a job as a junior analyst will
immediately give you exposure to a wealth of knowledge from more senior partners
at the firm. Youll learn a variety of skills, from how to deal with clients to how to
structure a deal. The interpersonal skills will be invaluable, regardless of if you stay
in the field or not.
Lifestyle
The amount of money you make will certainly be a boost to your lifestyle. The big
paychecks mean you can buy a nice house, take nice vacations and put money
away for retirement. If you live within your means, the kind of compensation levels
that investment bankers get will erase fears about paying rent and bills.
Downers
Hours
There will be plenty of them. Dont even think about having any kind of set
schedule. Youll likely have to cancel plans or vacations when a last-minute
business trip comes up. And dont even think about turning off your BlackBerry.
Youre on the job 24/7.
Demands
Investment bankers lead extremely stressful lives, full of demands from
management and clients alike. If youre looking for something low stress or cant
handle intense pressure, then this is not the career for you. There are always a lot
of balls in the air, and it is your job to keep them in the air.
Security
The success of investment banks is tied to the overall economy. During boom
times, clients are plentiful and so are bonuses. That all ends when the economy
contracts. Your base pay might remain the same, but dont count on the bonus
check at the end of the year. Businesses tend to scale back on making
acquisitions, and instead save money. Investment banks also tend to let staff go
during periods when business is slow.
Burn out
One investment banker described going into work each morning like a warrior going
into battle. Careers in the financial world are for the strong, and suited for people
adept at burning both ends of the candle. Most bankers tend to be under 40, and
hope to make enough money to get out of the business and try something new.
The hours are long, the clients demanding, and there comes a point when many
people look for the exits.
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Location
This can be both an upper and a downer. If you were looking to live the glamorous
lifestyle of a Wall Street banker with a stunning SoHo apartment, then working at a
middle market firm probably wont get you there. Youll most likely be looking at
jobs in smaller cities. But that might not be a bad idea. Take a look at real estate
prices these days. A four-bedroom house with a pool in the backyard in a tony
suburb outside of Wilmington, North Carolina, will run you about $220,000. That
amount of money will get you an efficiency apartment, most likely without any direct
sunlight, in one of the less prestigious neighborhoods in Manhattan.

61
Days in the Life

Chapter 9
No matter what kind of investment bank at which you take a first-year position, the
job requirements are pretty much the same. Any managing director will tell you it
takes lots of dedication, and lots of time in the office working and out of the office
thinking about work. If youre looking for a 9-to-5 job, this life aint for you. Weve
asked insiders at middle market firms what their day is like. Heres a compilation of
what one typical day might be for those analysts looking to put together deals and
those put in charge of analyzing companies and industries.
ANALYST
6:00 a.m.: Just because your firm might not have a poncy Wall Street address doesnt
mean the day doesnt begin early. The regional clients catered to by middle market
firms need the same kind of intense service. Your day doesnt begin with the alarm
clock screaming out. Many first-year analysts say their biological clock, perhaps
because of routine, wakes them up. The first thing they do is reach for their
BlackBerry and not the snooze button. The first 15 minutes of the day is spent sifting
through the subject lines in your email box for anything that might need immediate
attention.
6:15 a.m.: Given that todays market runs 24/7, youve responded to any emails on
your BlackBerry that needed immediate attention. The next portion of your wake-up
regimen is to sit on the sofa and enjoy your most peaceful moment of the day
watching CNBC, most likely in the morning darkness. Youve tuned in to hear the
latest commodity report that might influence the oil services account youre working
on, any interesting earnings news that could help out a tech company youre
representing, or a big market swing overseas that could slam the client who wants to
open up shop in China. This would also be a good time to cruise through the major
internet news sites, like WSJ.com, that might give you a jump on the news everyone
will be talking about when you get into the office.
7:30 a.m.: This is a good time to get into the office, considering most everyone else
will arrive within the next hour. This is when you check your voicemail, email and
anything that might have landed on your desk since you left the night before (or
earlier that morning). Responding this early in the morning to client requests is
impressive, and shows management youre on the ball. It also gives you a jump on
things before the rest of your colleagues roll into work. And this is also a good time
to pass on information to superiors, any important information like case studies or
news events.
8:30 a.m.: This is when the rest of the analysts, managing directors and others
typically will arrive into the office (assuming they have no early appointments). Your
task: try to look relaxed. Youve already sent the emails needed to inform others that
youve been on the case for hours. Make sure to greet everyone that might come your
way, but dont suck up too much. The key is to be calm, confident and on top of
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Days in the Life
your game. Dont be afraid to stop a superior at the door if theres an emergency,
though, most appreciate a chance to get in and get settled into the morning before
being approached.
9:00 a.m.: The workday for most of the world beings. The hour ahead of you is
crucial because this is when youll get most of the direction for the day. Your boss
might ask you to follow up on some client questions, or look into any developments
that might have emerged overnight. It is an hour that is focused on getting as much
information as possible, giving your team an edge in the investment banking world.
This most critical period is probably when the largest amount of emails and telephone
calls will be made. Its all about preparing for the meetings ahead.
10:00 a.m.: The first meeting is typically a conference call from the middle market
firms various offices and executives. This is when the entire company will run down
what is expected from the day. The managing director is likely to lead the meeting,
going from industry to industry to get a handle on what the firm faces. Dont even
think about tuning out until they talk about your industry. You might not be expected
to talk during this conference call, but its a good idea to know what the key items are
for each sector. As discussed, most industries cross over each other these days and
its a good idea to have at least some knowledge about the ones you dont directly
cover. Take notes.
10:30 a.m.: The call is over and you have about 30 minutes to follow up on anything
that came out of it. Its perhaps the most fast and furious period of the day. The
managing director might have asked your superior to get that pitch book polished off
for a lunch meeting, or gather some more research on why a glut in processors might
influence the small chip-making plant your firm is advising. Answers are needed,
and quick.
11:00 a.m.: This is about the time that your superior will want a one-on-one meeting
to see what youve accomplished. You might be meeting with the managing director
at smaller middle market firms or a senior analyst at bigger ones. This is where youll
get the direction needed to set the pace for the rest of the day. This gives them a
chance to prioritize what is expected of you, and for you to update them on what
youve learned since the day began at 6 a.m.
11:30 a.m.: The meetings are over. And, youve got your marching orders. Workers
outside of the investment banking world might be thinking about lunch. But this is a
brief window to reach out to those who actually take a lunch at noon. If youre on the
research side, youve got calls out to the investor relations departments at the
companies you follow. Working on the deal side? Theres research to be done,
maybe by reaching out to clients, to complete the models for which youve been
asked. Not getting these calls in before noon could set you back hours, considering
the people youre calling are heading off to lunch. And, most of the business world
doesnt eat at their desks like you do.
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Days in the Life
12:15 p.m.: This is what one investment banker calls the dead zone. Responses
to emails slow to a trickle. The phone doesnt ring. The information your day hinges
on isnt going to get done for the next hour. If youre smart, all the calls you need to
make the day a success have already been placed. And that makes your calls high
on the list of callbacks. This is the time to run across the street, BlackBerry at the
ready just in case, and quickly get a lunch you can bring back to your desk.
12:30 p.m.: After returning to your desk, this is the moment where you can catch up
on the days news. Check out how the Dow is doing. See what the trades are saying.
And, most importantly, take a look at some nonbusiness news sites. Dont ever lose
sight of the fact theres actually news beyond just the business section, one middle
market investment banker said. The reason? Knowing about the sports score from
the night before is just as important as knowing their balance sheet backwards and
forwards. Its all about relationship-building.
1:00 p.m.: If youve got all your calls out, from clients to investor relations
departments, now is the time where youll get the response youre waiting for. The
next hour will be about getting the answers to the questions youve been pondering
since the day first began.
2:00 p.m.: Remember the workers mantra of working 9-to-5? Well, youve already
done it, only its 2 p.m. and youve got hours to go. Try not to fall asleep. Get some
afternoon coffee and prepare for the last leg of the day. Senior analysts, managing
directors and everyone else at the middle market firm youve joined are now looking
for updates. Your boss might want to talk about that research he asked for, and be
ready for the client calls that will come and come and come.
4:00 p.m.: The late afternoon, assuming things get slow, is when new business begins
to come through. It might be calls from clients or directions from your managing
director. You might be asked to put together a company overview for a new client, or
maybe weigh some M&A potentials in the manufacturing sector. A corporate board
might be looking for a quick turnaround on a model for the takeover of a rival that
some consider risky. Pore over a bunch of regulatory reports or earnings releases.
You might even be asked for a 50-page memo to be turned in before the next day
begins. And thats when the unexpected midnight oil burns for the life of an
investment banker working at firm big or small. A few funding questions might get
thrown at you, and be prepared to call up other bankers to learn how to raise funds
for an acquisition. The last part of the day is sure to throw you the kind of curveballs
that make you reach for your BlackBerry before the alarm sounds off.
5:00 p.m.: Just like earlier in the day, this is your last chance to get your questions
asked at least before the morning. With most folks leaving to go home, you squeeze
whatever you can into the last hour of the day. It might be working on current
business that your managing director has asked about. It might very well be the new
business your boss asked you to look into. Either way, your questions need to be
answered before the next morning, and this is your last chance to get calls in. You
might need to compile some industry reports, scour the internet for information, make
copies of reports, or put together working group lists for deal teams on a transaction.
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Days in the Life
6:30 p.m.: Want to get ahead? Its dinner time. If you have thoughts of a quiet night
alone at home with a pizza, forget about it. For first-year analysts who want to get
ahead, this is networking time. Three or four times a week, this period of the night is
spent meeting with counterparts working in investor relations, or clients, colleagues
or more senior partners at the firm. Its all about networking in investment banking,
and this is the time to do it. Dont rely on a corporate Amex card. You probably wont
get one at a middle market firm, but they will likely give you a decent expense
account. Make sure to have enough money on your credit card to pay for the entire
meal, or face an embarrassing rejection from the waiter. And, given youre not getting
the exorbitant amount of money the rest of Wall Street is getting, the first-year analyst
better be prepared to wait for reimbursement for a month. Maybe two.
8:30 p.m.: Back in the old days youd probably have to go back to work, take what
youve learned and prepare for the next day. Welcome the home office. Thats where
youll spend the next few hours thinking about what you learned at dinner, reading
over the news since you left the office, taking into consideration the direction you got
from your boss, and putting all of that into action. Emails are sent, calls are made,
and you get a jump on the next day.
9:30 p.m.: If your boss asked for that discounted cash flow model to get done before
the morning, this is when you polish off your work. Hopefully you got most of it done
earlier in the day. Youre still checking your BlackBerry for anything else that might
have come in, and responding promptly to demonstrate youre still on the job.
11:00 p.m.: Your BlackBerry goes off. Its the managing director who got that late
report you filed hours ahead of time. Thanks, he writes. Not especially verbose,
but at least a recognition of the hours youre putting in. It gives you the inspiration to
put a few more emails out. Obviously youre not expecting a response. Its almost
midnight. Youve got another hour of reading to do about a perspective company, and
its bulky balance sheet to look over. A little light reading before bed, you think to
yourself.
1:00 a.m.: One last check on your BlackBerry, and then dial into your voicemail.
Seems things are quiet. Until you wake up, at least. At this point of the night, with
only five hours of sleep ahead, you think about the paycheck. The bonus. And the
lifestyle youll live once the big promotion comes.
MANAGING DIRECTOR
6:00 a.m.: It seems early, but even as the boss you have to wake up early. By habit,
you log on to your BlackBerry to sift through whatever emails have come in overnight.
While doing so, you multitask between getting yourself ready for a day of work and
switching on your computer to scan through the business headlines on everything
from blogs to major newspapers. Youre looking for any stories or articles on mergers
and acquisitions, potential target companies or clients.
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Days in the Life
7:00 a.m.: As the managing director of a middle market firm, your next part of the
day involves reading any email or listening to voicemail from those that work for you.
The doorbell rings. Its a courier dropping off an M&A pitch about which a decision
needs to be made. The analysts that work at the firm have prepared the documents
overnight under a tight deadline to get them finished before the big meeting later that
day. You, as managing director, are flying to the Silicon Valley at the end of the day
to go over options with the client. This is the third meeting with the chief executive
of the medium-sized company that is looking to sell itself, and this could help seal the
deal.
8:00 a.m.: On the way into work, you make telephone calls to various angel clients
that are looking to buy or sell part or all of their companies. These are pretty normal
phone calls, mostly just status updates or opportunities to give personal attention to
clients that might make you money in the future. Some might pan out, others not.
But thats good business.
9:00 a.m.: You get to work and begin responding to voicemails as you dial into
another conference call, which you quickly put on speaker phone so that it gives you
a bit more mobility in the office. The CEO of one company wants to discuss some
details that you need to put into a final pitchbook. A note pops into your inbox from
the CEO of another company you talked to on your way into work. He wants some
legal work done before he moves ahead on an acquisition, and you add that to the
list of things that need to be finished before you fly out to California later that day.
10:00 a.m.: You attend a meeting with your staff to go over what was discussed in
meetings held earlier in the morning with analysts. There are reports about new
companies that might be good to take meetings with. Another banker talks about the
next big thing that will sweep middle market activity, chip manufacturing suppliers.
You dont really pay that much attention. Its a hunch, and your job is to worry about
whats in front of you right now. But the concept was interesting nonetheless, and
you ask for a full report. Maybe it is a way to cash in, you ask yourself. Your strong
suit has always been those last-minute negotiations that get the big fee your firm
depends on, so a long session of crunching numbers isn't exactly the way you want
to spend your morning.
11:00 a.m.: An analyst pins you down in the hallway to discuss a pitchbook for a
struggling company that has been a client for years. While he shows some promising
work, you simply dont have time to go over the details. You make an appointment
for later in the week, while at the same time trying to keep the analysts morale up
and not sound discouraging. You realize your job is part dealmaker, part cheerleader.
You drop into a quick meeting with your senior staff, each of them ready to report
what their analysts are working on for the day. Its a rapid-fire meeting where only the
essential information is given, a status report that filters all the nonessential stuff out.
You've got a working lunch set up for noon, and, crunched for time, you exit the
meeting early.

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Days in the Life
11:30 a.m.: You drop back into your office for the first opportunity to respond to
phone calls and emails that werent deemed all that important when you first saw
them on your BlackBerry. Like all good executives, that BlackBerry is on and active
throughout the day. You learn to only respond when its a priority, but that doesnt
dismiss all the other email that comes in that isnt capturing your attention. Being
accessible is important. You spend 15 minutes taking care of whatever you can, and
then head out for your lunch meeting.
11:50 a.m.: Youve printed out whatever information needed to prep for your lunch
meeting. You read it while in the car. One of the perks of the job, a driver at least
during the day.
12:00 p.m.: Two CEOs from companies that are among your clients are interested in
a deal, and agree to meet with you for lunch. You've had an idea for a while that both
companies might want to share technology, maybe even team up on new products
together. The companies have very similar cultures, and could make a blockbuster
team if their executives sign off on the idea. The CEOs are interested in a deal. They
agree to explore some opportunities, and you give them some direction about how to
go about it. Your people will get in touch with their people. With work out of the way,
you spend the balance of the lunch talking about current events, films and updates
about your personal lives.
2:00 p.m.: Rushing back into the office after lunch, you do the all-too-familiar check
of email and voicemail. The CEO of the company youre meeting with in the Silicon
Valley has a whole host of questions. Its a curveball. And you immediately call the
analysts on the deal to get to work. It could be another long night for them, and that
would make two in a row. The next call isnt so good. The owner of another company
that was looking to make a deal has turned the prospect down. The deal would have
been a perfect fit, you think. Now theres even more incentive to put your staff to
work, coming up with even more ways to convince the two parties to come together.
3:00 p.m.: You meet with a candidate to become CFO of one of the portfolio
companies that you manage. This is among the best parts of the job because you
get to meet new people, and hear their ideas about how to make one of your
companies great. During some interviews, you use the lulls to map out strategy for
other ideas you have. But, this one in particular is interesting and the candidate
seems to be simply perfect for the job. He's also turning out to be an expert in an
area where you see some opportunity to make more deals, and could even be a
potential CEO sometime down the line.
4:00 p.m.: The chief counsel from an oilfield services company calls to go over a
proposed term sheet. The phone call was last minute, and mostly informational, as
you haven't lined up all the specifics yet about a potential deal. You assure the lawyer
that you understand all the terms. In fact, youre not exactly sure what all the terms
are. But you do your best to keep the call quick and pledge to get back to him with
all the information he requested. Another example during the day of how you need
to delegate.
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Days in the Life
4:30 p.m.: With some downtime before the next meeting, you again scan the financial
headlines, sift through some emails and make a few personal calls. You check in with
your senior staff, and then turn your attention to a stack of due diligence reports about
potential deals that seems to be piled high in the corner of your office. You decide to
put it off after a day packed full of meetings. Perhaps some light reading on the
weekend.
5:00 p.m.: The last meeting of the day could hold the most potential. The CEO of a
tech company protests that hell only sign off on a deal so long as it can guarantee
that none of his employees will be laid off. Thats an almost impossible term to
promise. But you happen to know about another company looking to expand a
company that can use all the help it can get. You assure to the client, without
providing any specific details, that you have just the company in mind. A few things
for you to think over on the way to the airport
6:00 p.m.: On the way to the airport, your BlackBerry beeps. It is from the hotel in
California where youre staying. You asked for a regular room but they ran out. But,
because you stay there each and every time you fly to the Sunshine State, they let you
know that youve been upgraded. A suite. Sometimes, you think, it is nice to be in
charge.
7:00 p.m.: While at the airport, you gaze around the room. Most people are making
last-minute phone calls to loved ones, letting them know if their flight is on time, what
time theyll be in, and asking what the weather is like. Youre buried in paperwork
and emails to look over. But, at the same time, youre looking forward to being in the
air for six hours and not having your BlackBerry go off. Finally, some time for you.

69
Final Analysis
Not surprisingly, the start of 2009 doesnt bode well for anybody making a living that
depends on financial deals. Big, multibillion-dollar transactions have ground to a
halt, with the major investment banks left on Wall Street reporting very little activity.
For middle market firms, the picture isnt exactly encouraging. Deals have declined,
but havent entirely dried up.
Global M&A deal activity in during the first month of 2009 was off to an inauspicious
start, according to Robert W. Baird & Co. Deals were down 38.7 percent in January,
which is the largest monthly decline since 2001. And, despite the low numbers, the
middle market experienced even larger declines in the number of deals and dollar
volume than the overall market. The number of global announced middle market
transactions was 555, a decrease of 47.6 percent, and middle market dollar volume
decreased by a staggering 61.2 percent to $24.8 billion. In the U.S., there were just
157 announced middle market transactions in January 2009, a 45.1 percent decline
over the same period the previous year. Dollar volume for January was just $9.4
billion, a 66.8 percent decline compared to the same period the prior year.
Keep in mind that was coming off some pretty depressing numbers in 2008. Baird
reported that the average M&A deal size in the U.S. was down considerably in 2008
$274 million versus $342.7 million in 2007. With a 25.4 percent decline from 2007,
U.S. middle market activity hit a record 14-year low, with only 3,076 registered deals
in 2008.
Not throwing in the towel yet

The investment firm summarized that the current outlook for 2009 is uncertain at
best in its prognosis of 2009. But it did state assuredly that an expected increase
in the availability of credit and any improvement in the economy would boost this
years outlook. And others claim that despite the gut-wrenching 2008 numbers and
2009 projections, it is not time to throw in the towel. Both Baird and William Blair &
Co., another middle market investment bank, predicted companies looking to buy a
competitor or expand into new markets through an acquisition for strategic reasons
likely will dominate the M&A landscape in 2009.
M&A is sure to fall in 2009 compared with the year before, but the lower end of the
middle market should hold up relatively well since smaller deals require less
financing, experts say. Some firms are waiting on the sidelines for things to balance
out. We are kissing a lot of frogs right now, Brad Woloson, a general partner with
JMI Equity, said at a conference on private equity deals. We are sitting here waiting
for the dislocation to happen in our markets waiting for rational sellers.
Meanwhile, banks that specialize in lending money for middle market deals remain
encouraged. Ellen Marshall, a managing director with New Yorks CIT Bank, said,
we have every intent to be active in the current market. And Wells Fargo Chief
Executive John Stumpf said on a recent conference call at the start of the year that
his bank never stopped lending for middle market deals during the big downturn.
71

Final Analysis
This segment of his business rose 14 percent in 2008, and he expects that those
commercial loans will continue once the market regains some balance.
Looking to technology
One area on everybodys list in 2009 is technology. With the economy not likely to
recover quickly, many companies in the tech space are running tight operations bent
on producing decent earnings and wrangling with a curbed appetite from their costminded customers. But that also means tech companies will be more cautious when
shopping for an acquisition. That means they will prefer to complete deals that dont
use up all their cash, and where the target company is healthy and able to weather
the economic storm. That means 2009 could well be the year of small- and mediumsized deals, bankers say. Dont rule out another run by Microsoft Corp. to snap up
rival Yahoo! Inc., or a sprinkling of other multibillion-dollar acquisitions. It is expected
that supersized deals will make up a smaller percentage of the volume for tech, and
middle market acquisitions will fill in the gap.
"Large, cash-rich strategic companies are unlikely to make large, transformative
acquisitions," said Jeff Bistrong, who heads the technology group at investment
banking firm Harris Williams. Rather, he told BusinessWeek, he expects more "bitesized" acquisitions. "Most will keep as much dry powder and liquidity as they can,
because of the indeterminate duration of this downturn. Thats backed up by a
PricewaterhouseCoopers report on the 2009 M&A Outlook. The business advisory
firm predicts that there will be aggressive acquisition activity from industry leaders
... as they take advantage of once-in-a-decade low prices to pursue strategic portfolio
fill-ins as well as cross-sector transformative deals."
Fighting against the big guns

That means that the surviving Wall Street banks, like JPMorgan Chase & Co. or
Morgan Stanley, will be fighting against smaller middle market banks for deals. And,
with a natural edge due to their roots in the middle market industry, the smaller firms
will find themselves in a more advantageous position against their bigger rivals. And
for those looking for a job in investment banking, get ready for a scrappy way of
business as the markets heal during 2009. Middle market executives say they are
going all out in not only attracting new business, but making sure deals get done.
Anybody looking for a job as an analyst, and pushing themselves from promotion to
promotion until they get that long sought-after gig as managing director, might be
wise to take on that same kind of spirit.
What was agreed to, what wasnt agreed to, was open to additional negotiation, said
Glenn Gurtcheff, managing director of the Harris Williams & Co. office in Minneapolis.
Duct tape, shoe spit We did everything we could to keep deals from falling apart.
72
FIRM
PROFILES
74
ALLEGIANCE CAPITAL
5429 LBJ Freeway, Suite 750
Dallas, Texas 75240
Phone: (214) 217-7750
www.allcapcorp.com
Divestitures
Joint Ventures
Mergers & Acquisitions
Sales
SPECIALTIES
EMPLOYMENT CONTACT
Alliances
Buyouts
Corporate Finance
Cross-Border Transactions
jobs@allcapcorp.com
Founder & Chairman: David Mahmood
Firm Type: Private Company
No. of Offices: 6
The Scoop
Full service shop

Allegiance Capital Corporation is a full-service investment banking firm specializing in
the middle market (companies with revenue from $20 million to $500 million), with
offices in Dallas, New York, Minneapolis/St. Paul, Vancouver, Shanghai and Tel Aviv.
Founded in 1998 after a spin-off from Northstar International, Allegiance Capital
specializes in the sale and divestiture of middle market companies. Through its
worldwide network, Allegiance Capital assists companies in every aspect of selling
and financing a business, including debt restructuring, mezzanine financing, buyout
management, strategic partnering, consulting and other related services. The firm
says it differentiates itself by having deep industry knowledge, vast contacts with
potential buyers, heavy investment in educating sellers and by obtaining premium
pricing for clients. Today, the company serves a wide range of industries, including
service, manufacturing, health care, retail, technology, natural resources, energy,
aviation and wholesale distribution.
A safe haven
Allegiance Capital's management targeted a large and robust sector in the U.S.
economythe lower middle market. Representing approximately 30,000 companies
with earnings ranging from $5 million to $40 million, given an enterprise value of
approximately $1.5 trillion, this market is huge. "Despite tightening within the
financial markets, the lower middle market is a safe haven," notes David Lonsdale,
president of Allegiance Capital. "Transactions in the business sector use less leverage
than larger transactions, which helps obtain financing in the current credit market."

75

Allegiance Capital
Allegiance Capital has a client base of 50 companies, and has a sign-up rate
averaging one new client per week.
Recent deals
Allegiance recently announced the sale of Precision Motors Transport Group, a
Michigan company specializing in the transport of European luxury cars throughout
the United States. The purchaser is Corinthian Capital Group, LLC, a private equity
firm that specializes in investing in small and middle market companies. Allegiance
Capital, acting on behalf of the seller, was the investment bank on the transaction.
Getting Hired
Point of contact
If youre interested in working for Allegiance Capital, your best bet is to email them
directly at jobs@allcapcorp.com.
76
ALPHA OMEGA CAPITAL PARTNERS

7202 Glen Forest Drive, Suite 300
Richmond, VA 23226
Phone: (804) 282-7680
www.aocp.com
SPECIALTIES
EMPLOYMENT CONTACT
www.aocp.com/contactus.shtml
Managing Partner & Founder: Tony
Vincent
No. of Offices: 3
Business Valuations
Buying Businesses
Capital Raising
Owner Exit Strategies
Selling Businesses
The Scoop
100 under 100
Since 1999, Alpha Omega Capital Partners has been providing in-depth advisory
services to privately owned, entrepreneurial firms in the mid-Atlantic region with
annual revenue under $100 million. The firm provides a full range of investment
banking services, including seller representation, valuation services, financial
advisory services and management consulting. Having sold over 100 companies, the
firm is currently representing over 30 sell-side, buy-side, capital raise, valuation and
consulting clients in Virginia, West Virginia, North Carolina, South Carolina, Georgia,
Florida, Kentucky, Pennsylvania, New Jersey, Maryland, Ohio, Michigan and Utah.
A diversity of experience
The principals of Alpha Omega have extensive operational and financial experience
with numerous industries including plastics processing, printing, job shop
manufacturing, retail (including auto dealerships), internet-based companies,
distribution, and business-to-business services. They have run companies, provided
financing for growth or acquisitions, and provided M&A investment banking advisory
services. The firm also controls subsidiary Alpha Omega Capital Securities, based in
Richmond, Virginia. The unit is a licensed broker-dealer that raises capital for
investment banking opportunities. Alpha Omega Capital Securities employs a team
of principals and registered representatives who specialize in providing their clients
with funding choices, including traditional debt instruments, mezzanine financing
and private equity.

77

Alpha Omega Capital Partners
Merging for success

In 2004, Alpha Omega merged with investment banking and venture capital firm
Story Point Capital. Tony Vincent, president of the firm, said that "this merger will
assist smaller middle market companies by bringing together the investment
experience of Stony Point Capital with the M&A experience of Alpha Omega." The
firms services also include mergers and acquisitions, financial restructuring, and
debt placement advice, financing arrangement, and strategic consolidation and
equity removal strategies. Aside from manufacturing, retail and financial services, the
firm serves the health care, media, telecommunications and transportation sectors.
Getting Hired
Point of contact
If youre interested in working for Alpha Omega, your best bet is to check our its
website, which has information on how to email the firm (without actually providing a
direct email address!)
78
R. W. BAIRD & CO. INCORPORATED

777 East Wisconsin Avenue
Milwaukee, WI 53202
Phone: (414) 765-3500
Fax: (414) 765-3633
www.rwbaird.com
SPECIALTIES
Asset Management
Equity Capital Markets
Fixed Income Capital Markets
Private Equity
Private Wealth Management
EMPLOYMENT CONTACT
www.rwbaird.com/aboutbaird/careers/careers.aspx
Chairman, President & CEO: Paul E.
Purcell
No. of Offices: 78
The Scoop
What slowdown?
While other banks handed out pink slips in 2008, Milwaukees R.W. Baird & Co.
(better known as Baird) handed out job offers. The firm added more than 200
employees to its payroll, bringing global headcount to nearly 2,300. Of these, the
majority are in the United States; Bairds overseas business remains modest, with just
about 100 professionals, but according to the firm, European and cross-border
assignments have accounted for one-third of its mergers and acquisitions work in
recent years.
In January 2009 the firm ranked No. 14 overall on Fortunes 2009 list of the 100 Best
Companies to Work For. It also came in No. 3 among small companies (those with
2,500 employees or fewer). This was the sixth consecutive year in which Baird made
the prestigious national listing. Baird was also named the 2008 Middle Market
Investment Bank of the Year by Buyouts magazine. Since the late 1990s Baird has
advised on over 615 M&A and financing deals with a total value of over $94 billion.
A storied founder
Robert Wilson Baird wasnt just the founder of the firm that bears his name: he was
also one of the funders of the National Association of Securities Dealers, and served
as the NASDs third chairman. Baird the bank traces its roots to 1919, when Robert
Wilson was named lead partner of the First Wisconsin National Banks securities
division. He rose to become president of the division, called First Wisconsin
Company, which was later spun off and renamed the Securities Company of

79

R.W. Baird & Co. Incorporated
Milwaukee. By 1948 the firm had obtained a seat on the New York Stock Exchange
and assumed its current name.
Baird gathered its strength in Wisconsin in the 1980s, becoming the states top
investment bank before embarking on a strategic expansion in the 1990s. This led
to the opening of dozens of new offices in the United States and in Europe. Wholly
owned by its employees, Baird has also stayed true to its hometown and maintained
its headquarters in Milwaukee.
Bairds business mix

Bairds asset management division includes Baird Investment Management (which
manages equity mutual funds) and Baird Advisors (a fixed-income investment
manager). Its a small group, with just three offices: San Francisco, Milwaukee and
Cincinnati. Investment banking, research and equity sales and trading comprise the
equity capital markets business, which includes an institutional sales team in London
and i-banking teams in Germany and the U.K. The fixed income capital markets unit,
with about 25 offices in the U.S., consists of fixed income sales and trading and
public finance.
The private wealth management division, which serves high-net-worth individuals,
corporate clients and business owners, has 58 offices nationwide. Finally, the private
equity business is carried out by several partners around the globe: Baird Capital
Partners, Baird Capital Partners Europe, Baird Venture Partners and Granville Baird,
a German affiliate.
Target: Asia
For the latest proof that Bairds gone global, look no further than Shanghai. In
September 2008 the firm announced that it had expanded its international platform
to include investment banking capabilities in Asia, thanks to the hire of Anthony YanHong Siu, a veteran Hong Kong investment banker who joined from Standard
Chartered Bank. In his new role, Siu will focus on cross-border M&A deals, working
in partnership with Bairds M&A teams in the U.S. and Europe. Siu joined Bairds
150 investment banking professionals in the United States, United Kingdom and
Germany.
Steve Booth, the firms director of investment banking, said Baird is poised to make
more inroads in the international market, a move that may mean more work for its
domestic teams. In the late 1990s, our clients valued us for our deep sector
expertise, but we were in danger of becoming less relevant due to our strictly U.S.
focus, he said. As we expanded into Europe and gave our U.S. clients the access
they were interested in, we formed relationships with European clients who were
similarly interested in our U.S. connections.
80

More pros on board

In October 2008 Richard P. Conklin joined Bairds equity capital markets team in the
Chicago office. His new assignment: building Bairds equity capital markets business
in the industrial and real estate sectors, and overseeing private placement activity for
both public and private companies. The equity capital markets division is clearly on
a path of expansion; earlier in 2008 it opened equity sales and trading offices in San
Francisco, Boston and Stamford, Conn. Conklin joined Baird from ProLogis, the
worlds largest real estate investment trust (REIT). Previously, he held a senior
position in William Blair & Co.s investment banking group.
Two more senior investment banking professionals joined the Baird ranks that month,
as the firm opened a new office in Charlotte, N.C. Brian McDonagh, former head of
the industrial growth M&A group at Wachovia Securities, signed on as managing
director and co-head of mergers and acquisitions. Joe Pellegrini, who led the retail
and soft goods investment banking group at Wachovia, joined as a managing director.
(Pellegrini tackles advisory assignments these days, but before going into banking he
spent seven years in the NFL, playing with the Atlanta Falcons and the New York
Jets.) To further flesh out the Charlotte team, managing director Frank Stokes left the
Chicago office and headed south.
The senior hires kept coming in December 2008 with the addition of Gregory J.
Ingram, who was named managing director and co-head of equity capital markets.
He joined Bairds San Francisco office from the equity and capital markets division of
Pacific Growth Equities; before that he was co-head of J.P. Morgans Americas ECM
division.
Nice deals
For the second year in a row Baird won top honors for its M&A prowess in the
Acquisitions Monthly annual roundup of investment banks. Baird was named the
2008 Manufacturing Sector Adviser of the Year for its work on deals like the sale of
Avery Weigh-Tronix Holdings Ltd. to Illinois Tool Works and the sale of Driessen
Aerospace Group to Zodiac S.A.
Baird also nabbed the Consumer and Retail Products Deal of the Year award from
The M&A Advisor for its role in advising Technical Concepts on its $445 million sale
to Newell Rubbermaid Inc., one of the largest, middle -market consumer products
transactions of 2008.

81

Getting Hired
Careers at Baird
With more than 100 locations globally, Baird has openings in a wide range of financial
fields, according to its website. Go to www.rwbaird.com/about-baird/careers for more
information on opportunities in the U. S. and abroad as well as campus visits and
career fairs.
82
BCC CAPITAL PARTNERS

5000 Birch Street, Suite 7500
Newport Beach, CA 92660
Phone: (949) 833-3767
www.bcccapital.com
SPECIALTIES
EMPLOYMENT CONTACT
careers@bcccapital.com
Founder & Managing Partner: Edward
M. Bixler
No. of Offices: 1
Business Valuations
Debt & Equity Financings
Employee Stock Ownership Buyouts
The Scoop
Services and clientele
BCC Capital Partners LLC is a boutique investment banking firm offering financial
advisory services to middle market companies. The firm provides corporate
transitions, merger and acquisitions, corporate finance, negotiation, divestiture,
strategic consulting, management buyout and valuation advisory services. Its
clientele includes Aerospace Optics, Clark Metals, Inc., Edwards and Kelsey, Inc.,
Fitness Systems, Inc., Lambco Engineering, Inc., Prime Line Products, Inc.,
Typecraft, Inc. and United Syatt America. BCC was founded in 1987.
Specialties on offer
BCC Capital offers a number of specialties for its customers. BCC Partners, LLC is
nationally known for properly structuring and implementing the sale of a business
owner's stock to employees. BCC Valuation Services, LLC provides a full range of
valuation and financial opinion services to private and public companies of all sizes
and in virtually all industries. BCC Advisory Services, LLC specializes in advising
business owners in sale transactions where the target company is privately owned
with $10 million to $200 million in annual revenue. BCC Advisory Services, LLC
advises business owners in raising debt and equity capital for growth,
recapitalizations, acquisitions and liquidity.

83

BCC Capital Partners
ESOP experience
BCC is nationally known for properly structuring and implementing the sale of a
business owner's stock to its employees using an ESOP, a popular employee plan that
encourages employee ownership and allows employees to become actually involved
in their companys success. Founder Edward Bixler speaks nationally at ESOP
conferences and sits on National ESOP Association committees including the
valuation, finance, and legal and regulatory advisory committee, as well as the board
of advisors of ESCA (Employee S-Corporations of America). The companies he looks
for are: privately-owned$ 10 to $150 million in annual revenuewith owners
seeking to cash out, either partially or completely, and who desire to reward loyal
employees. The company boasts one of the highest transaction completion rates in
the industry.
Getting Hired
Seeking talent
According to its website, BCC Partners is continually seeking talented professionals

to join its advisory team. To learn more, email careers@bcccapital.com.
84
BENGUR BRYAN & CO.

509 S. Exeter Street, Suite 210
Baltimore, MD 21202
Phone: (443) 573-3030
www.bengurbryan.com
SPECIALTIES
Fairness Opinions
Financial Advisory Services
Private Placements
Strategic Planning
Valuations
EMPLOYMENT CONTACT
info@bengurbryan.com
Co-Founder: Charles A. Bryan
No. of Offices: 1
The Scoop
Full service shop
Bengur Bryan & Co. is an investment bank focusing on private placements, mergers
and acquisitions, and other financial advisory services (fairness opinions, valuations
and strategic planning) for middle market companies. The company serves
industries that include communications and technology, transportation, financial and
business, consumer products and services, manufacturing and distribution, and
health care services. Bengur Bryan was founded in 1991 and is based in Baltimore,
Maryland. The companies the firm represents typically have enterprise values
ranging between $10 and $100 million. Bengur Bryan has completed more than 100
financings and merger and acquisition transactions, which have totaled in excess of
$3 billion.
Efforts in merchant banking

The company also has a merchant banking unit, Patriot Capital. The unit makes
subordinated debt and preferred equity investments in acquisitions, management
buyouts and recapitalizations that range between $15 and $100 million in enterprise
value. The merchant bank focuses its efforts principally in the mid-Atlantic, Midwest
and southern United States.

85

Bengur Bryan & Co.
Bryan leads the way

Charles A. Bryan, who co-founded the firm, specializes in and manages Bengur
Bryans investment banking services in mergers and acquisitions and private
placements for companies in the consumer, transportation and business services
industries, and related e-commerce businesses. Bryan has advised clients ranging
from a multibillion-dollar transportation company, Yellow Corporation, to industry
consolidators like Railworks, Inc., to early stage e-business services companies.
Hands-on
David Schwaber, chief executive of Monarch Rubber Company, explained that the
sale of his family business was made easier by Bengur Bryans hands-on approach.
When we began to consider the sale of our family business, our attorneys suggested
that we interview various investment banking firms to represent us, he said. When
we met with Bengur Bryan we immediately felt as though their firm was the right
combination of expertise and personality for our company. Monarch, a 75 year-old
family-owned business, was sold to Germanys Armacell international. We are very
pleased to welcome Monarch, their employees and their customers into the Armacell
family, said Armacell President Ulrich Weimer after the transaction closed.
Getting Hired
Point of contact
Bengur Bryans website doesnt directly refer to employment opportunities, but does
list an email address, info@bengurbryan.com, thats worth trying if youre interested
in learning more about possible opportunities at the firm.
86
BOENNING & SCATTERGOOD

4 Tower Bridge
West Conshohocken, PA 19428
Phone: (610) 832-1212
www.boenninginc.com
Investment Banking
Private Client Services
Public Finance
EMPLOYMENT CONTACT
SPECIALTIES
Derivative Strategy
Equity Research
Fixed Income
www.boenninginc.com
Chairman & CEO: Harold F.
Scattergood Jr.
No. of Offices: 5
The Scoop
Almost a century of service
Boenning & Scattergood, Inc. is one of the oldest independent securities, asset
management and investment banking firms in the region, providing individual,
institutional, corporate and municipal clients a full complement of financial services,
including equity research, investment banking, public finance and asset
management, as well as equity and fixed income, and sales and trading. Today,
Boenning & Scattergood upholds over nine decades of tradition that is rarely found
among its competitors.
History and activity

In 1914, Philadelphia financier and banker, Henry Dorr Boenning, established the
investment banking firm of Boenning & Company. The Scattergood name was added
in 1970; the firm is now led by Harold F. Scattergood. The firm's investment banking
practice was further delineated in 2001 when it acquired bankers from the Berwin
Group of Philadelphia, and focused primarily in the financial services and middle
market sectors. Boenning & Scattergood broadened to include life sciences
investment banking in 2004, and offers services for family businesses, public and
private companies looking to divest or buy units, private placements and other
capital-raising activities. Over the past five years, the investment banking practice of
Boenning & Scattergood has closed over 60 transactions with total deal volume of $3
billion, making the practice one of the most active in the mid-Atlantic region. Over
the past 20 years, principals of Boenning & Scattergood's investment banking
practice have closed transactions with a $6.9 billion total deal volume. Boenning &

87

Boenning & Scattergood
Scattergood has advised companies such as Ronco, Yardville National Bank, and
Dave and Busters.
Scatter the wealth

Harold F. Scattergood Jr. says hes happy keeping the company decidedly middle
market. The goal, he said, is to keep things local instead of growing too fasta sage
plan given all the upheaval on Wall Street these days. "My father always told me that
you do the things you know best, you stick with them and try to do them well," he
said. "It's a philosophy I have grown up with, at the dinner table with him as a boy,
and later when I was learning the business under his wing."
Getting Hired
Contact information
If youre interested in learning more about Boenning & Scattergood, check out its
website, which lists a toll-free contact number, 800-883-1212. The site also provides
a way to contact the firm electronically by submitting an online request.
88
BRECKENRIDGE GROUP
Resurgens Plaza - Suite 1250
945 East Paces Ferry Road
Atlanta, GA 30326
Phone: (404) 965-1600
www.breckenridgegroup.com
EMPLOYMENT CONTACT
info@breckenridgegroup.com
Co-Founder: Larry C. Williams
No. of Offices: 1
SPECIALTIES
Credit Facilities
Leveraged Transactions
Private Placements
The Scoop
An experienced group
With over 125 years of cumulative investment banking experience, Breckenridges
team of professionals has completed over 400 financial advisory assignments,
representing over $30 billion in transaction value. Based in Atlanta, Georgia,
Breckenridge provides a wide range of investment banking services to middle market
businesses. The firm focuses on divestitures, and mergers and acquisitions, as well
as private placements of debt and equity.
Many services for many industries

The boutique investment banking firm offers corporate finance advisory services to
middle market companies. The firm offers mergers and acquisitions, raising capital,
financing, management buyouts, going-private, recapitalizations and private
placements advisory services. It caters to the chemicals, distribution, environmental,
financial services, food processing and services, health care, information
management, manufacturing, printing and packaging, telecommunications and
transportation industries. The firms clientele includes Hi-Tech Rentals Inc.,
ReachView Technologies, OnSite E-Discovery Inc., Cypress Communications Inc.,
and Z-Tel Inc.
Williams at the helm

Larry C. Williams co-founded The Breckenridge Group, Inc. in 1987 as a boutique
investment banking firm focused exclusively on the middle market. Prior to that,
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Breckenridge Group
Williams was an executive vice president at Stringer, Wyatt & Williams, Inc., an
Atlanta-based investment banking firm. Previous experience includes a role as vice
president for investment banking with Robinson-Humphrey Company, Inc. and as
director of finance and development for the Cecil B. Day Company. Among
Breckenridges most recent deals, Williams oversaw the sale of ReachView
Technologies to Alcatel-Lucent.
Getting Hired
Point of contact
You can email Breckenridge at info@breckenridgegroup.com to find out more.
90
BRISBANE CAPITAL
760 U.S. Highway One, Suite 206
North Palm Beach, FL
Phone: (561) 630-8400
www.brisbanecapital.com
Management Buyouts
Restructuring Services
EMPLOYMENT CONTACT
info@brisbanecapital.com
SPECIALTIES
Debt & Equity Capital
Exit Strategies
Fairness Opinions
IPO Advisory
Co-Founder & Managing Director:

Warren W. Blanchard
No. of Offices: 1
The Scoop
Looking far and wide
Brisbane Capital focuses on managing clients through merger, acquisition and
corporate finance transactions, and by providing related financial advisory services.
The firm's principals have managed over 100 transactions, creating value for clients
in excess of $1 billion. Though based in South Florida, Brisbane has represented
clients and projects international in scope. The firm has represented clients in
Florida, Indiana, Illinois, Texas, California and Washington state, and buyer
transactions have included targets in North America, Europe and Latin America.
Firm focus
Brisbane Capital focuses on assisting clients with strategic assessments,
development of comprehensive business information memorandums, identifying
qualified target candidates (either buyers or sellers), developing valuation
benchmarks, contacting target candidates, negotiations, deal structure, due diligence
and transitions. Acquisition experience (buyer representation) includes transactions
generally ranging up to $10 million. Divestiture experience (seller representation)
includes deals valued in excess of $150 million, with a focus on transactions in the
$10 to $50 million range.
Devoted to the middle market

Founding member Warren Blanchard has over 30 years of experience serving middle
market companies. A certified CPA, in 1993 he formed SunCoast Capital Corp., a
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Brisbane Capital
merger and acquisition consulting firm serving the middle market; prior to that he was
managing partner of Coopers & Lybrand.
Getting Hired
Point of contact
To learn more about Brisbane Capital, send an email to info@brisbanecapital.com.
92
BROOKWOOD ASSOCIATES
3575 Piedmont Road
15 Piedmont Center, Suite 820
Atlanta, GA 30305
Phone: (404) 874-7433
www.brookwoodassociates.com
SPECIALTIES
Corporate Finance
Divestitures
Joint Ventures
Private Placement
Restructuring/Bankruptcy Services
Sales
EMPLOYMENT CONTACT
Rob Tyndall
Email: rgt@brookwoodassociates.com
Michael Stollmack
Email: ms@brookwoodassociates.com
Founder & Chairman: Robert S.
Winborne
No. of Offices: 2
The Scoop
A range of offerings
Brookwood Associates is an investment banking firm that provides financial advisory
and consulting services to middle market companies. The firm offers mergers and
acquisition, sales advisory, business valuation, negotiation, divesture, institutional
private placement of equity, mezzanine debt and senior debt, recapitalization and
restructuring consulting services. Additionally, it provides due diligence, private
transactions, fairness opinions, bankruptcy and strategic advisory services. The
companys clientele includes Remy International, Inc., Marina Medical Billing
Service, Inc., KirTac, Inc., Stag-Parkway, Inc., Thompson Industrial Services, Inc.,
and Southern Anesthesia & Surgical, Inc. BALLC was founded in 1989 and is
headquartered in Atlanta, Georgia with an additional office in Charlotte, North
Carolina.
Transactions aplenty
Brookwoods bankers have in excess of 150 years of experience and have led the
successful completion of hundreds of middle market M&A, private finance and
advisory engagements that aggregate in total value to significantly more than $10
billion. The firm focuses primarily on companies in consumer products, health care,
food and agribusiness, manufacturing, restaurants, specialty retail, technology and
telecommunications. It specializes in transactions with enterprise values up to $250
million. The companys clientele include Remy International, Inc., Marina Medical

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Brookwood Associates
Billing Service, Inc., KirTac, Inc., Stag-Parkway, Inc., Thompson Industrial Services,
Inc. and Southern Anesthesia & Surgical, Inc.
Au Bon Deal
Brookwood served as exclusive financial advisor to Boston-based Au Bon Pain in the
sale of a majority stake of the company to LNK Partners. Founded 30 years ago, Au
Bon Pain is one of the most successful fast casual restaurant concepts in the
restaurant industry, with 33 consecutive quarters of positive same store sales growth.
The company operates over 225 bakery/cafs, including company owned and
franchise cafs in the U.S. and internationally. Among the highlights of the deal is
that this was the second time Au Bon Pain tapped Brookwood, the first being the
2005 management-led recapitalization of the company. The transaction also allowed
management to obtain significant liquidity and retain a minority equity interest.
Getting Hired
Seeking qualified professionals
Brookwood actively seeks those who demonstrate an unwavering commitment to

client service. For more info, contact Rob Tyndall or Michael Stollmack at the email
addresses above, or see Brookwoods website.
94
BROWN GIBBONS LANG & CO.

1111 Superior Avenue
Suite 900
Cleveland, OH 44114
Phone: (216) 241-2800
www.bglco.com
SPECIALTIES
Senior Managing Director & Principal:

Michael E. Gibbons
No. of Offices: 2
Debt & Equity Placements

Financial Restructuring
Global Deals
EMPLOYMENT CONTACT
Erica B. Anthony
Email: eanthony@bglco.com
The Scoop
What they provide
Brown Gibbons Lang & Co. is an investment banking firm that focuses on middlemarket companies with enterprise values between $25 million and $500 million. The
firm provides mergers and acquisitions, recapitalizations, private placements of
equity and debt securities, initial public offerings, valuations and fairness opinions,
and financial restructuring advisory services. Additionally, it offers due diligence,
transaction negotiation and document preparation services. BGL was founded in
1989 and is based in Cleveland, Ohio, with additional offices in Chicago, Illinois, and
Boston, Massachusetts.
Sales and mergers

Assisting in the sale, merger or other disposition of middle-market companies, from
early stage strategic planning to final transaction closing, has been at the core of
Brown Gibbons Langs advisory services. The firm represents private company
owners, private equity investors, and private and public corporations in both sell-side
and buy-side M&A engagements. The firm caters to automotive, business services,
chemicals, construction materials and building products, consumer products, food
and beverage, health care, manufacturing, metals processing, plastics and packaging
industries. BGL is also the U.S. partner in Global M&A, a partnership of independent
M&A houses focused on cross-border deals.

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Brown Gibbons Lang & Co.
Road warrior
In 2007, Brown Gibbons Langs Michael Gibbons logged over 300,000 airline miles,
regularly traveling between the U.S. to countries such as Argentina, Holland, Japan,
Poland and Chile. Such is the life of a co-founder and chairman determined to build
his investment bank into a global franchise that's as well known in Latin America or
Europe as it is in its hometown of Cleveland, Ohio. Though the entire investment
banking industry is suffering due to the credit crisis, Gibbons says the long travel and
hard work pays off. Seller price expectations are slowly adjusting to the new market
climate. However, there is still plenty of money for, and interest in, good businesses
in the middle market. The dry powder in the hands of private equity ensures at least
a reasonable level of activity in this difficult market.
Getting Hired
A traditional hierarchy
Professional positions at BGL include investment banker, associates and analyst. The
firms website includes instructions on how to submit a resume online, and you can
also contact Erica B. Anthony at eanthony@bglco.com for more information.
96
C. V. LEMMON & CO.

6060 N. Central Expressway
Suite 260
Dallas, TX 75206
Phone: (214) 692-7248
www.cvlemmon.com
SPECIALTIES
EMPLOYMENT CONTACT
info@cvlemmon.com
Founder & Chairman: Charles V.
Lemmon
No. of Offices: 1
Corporate Finance
Strategic Alliances
Valuations
The Scoop
Handling a crisis
Founded in 1983, C.V. Lemmon & Co. devotes itself to providing the highest caliber
of advisory services to closely held corporations. The firm's activities span many
industries, with experience in a wide cross section of manufacturing, distribution,
finance and service industries. The company first became known in the financial
community through arranging non-bank loans so clients could leave the banks during
the Southwestern banking crisis, which occurred in the mid and late 1980s. C.V.
Lemmon has grown since then, and is now an active member of the International
Network of M&A Partners (IMAP), which provides clients with international exposure
to identify global strategic partners.
Its in the database

C.V. Lemmon maintains an extensive database on thousands of public and private
companies, buying groups, lenders, mezzanine equity sources, attorneys,
accountants, appraisers and other professionals associated with successful
dealmaking. This proprietary, automated database includes complete data on
preferences, transaction histories and financial abilities. Most recently, the firm
served as financial advisor to Precise Machine Co. in its sale to LMI Aerospace Inc.
Lemmon squeezes more profit

Charlie Lemmon is not only helping sell companies, but is taking equity stakes along
with it. As the founder of his own boutique investment bank, Lemmon told the Dallas
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C.V. Lemmon & Co.
Business Journal that hes seeing a steady stream of profitable, well-managed and
growing companies looking for capital investments. "The No. 1 asset on their balance
sheet is the company; they're looking to take some cash out," Lemmon said. In the
three recapitalizations C.V. Lemmon completed in 2007, banks and private equity
investors were interested in deals with quality small companies. The next year's deals
were bigger, and C.V. Lemmon took an equity stake in some of them. 2008 could
be better than the last two years, predicted Lemmon.
Getting Hired
Point of contact
If youre interested in working at C. V. Lemmon, send an email to

info@cvlemmon.com to find out more.
98
CAYMUS PARTNERS
One Live Oak Center
3475 Lenox Road
Suite 650
Atlanta, GA 30326
www.caymuspartners.com
EMPLOYMENT CONTACT
www.caymuspartners.com
Managing Partner: Geoffrey L. Faux
No. of Offices: 2
SPECIALTIES
Financial Advisory
Private Placements
The Scoop
Formerly Harpeth
Caymus Partners LLC is an investment banking firm that offers financial advisory
services to middle market companies. The firm provides mergers and acquisitions
advisory services including sell-side, buy-side and leveraged buyout transactions;
private placements of equity, debt and hybrid securities; and strategic advisory
engagements including fairness opinions, valuations and takeover defense strategies.
The firm, formerly known as Harpeth Capital Atlanta, LLC, was founded in 2001 and
is headquartered in Atlanta with an additional office in New York.
Across all sectors

Caymus Partners caters to business and business-related services, communication
and technology, consumer and retail, health care; and manufacturing and distribution
sectors. Its clientele includes Coast Dental Services, HSS Group, Northern Safety,
Professional Healthcare at Home, ReachOut Healthcare America and SunLink Health
Systems. Caymus Partners professionals have a combined 65 years of experience
and have collectively closed more than 250 transactions across multiple industries
and transaction types.
Getting to know you

Caymus Partners Geoff Faux said the way the middle market firm does business is
to learn as much as it can about its clients. This helps give a better sense of
projections for the company, and allows it to hunt for money. "We get our clients to
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Caymus Partners
focus on what their growth initiatives are," said Faux told the Atlanta Business
Journal. "Can they grow it internally, or would you have to grow through acquisition?
If they raise capital, how would they deploy that capital to grow their business? We
want to make sure they have a set of projections that convey to people, the potential
investor, what the growth opportunities are.
Getting Hired
Point of contact
Caymus Partners doesnt provide career information on its website, or a contact

email. However, the site does invite readers to add themselves to its mailing list.
100
CURTIS FINANCIAL GROUP

One Liberty Place
Suite 4400
1650 Market Street
Philadelphia, PA 19103
Phone: (215) 972-2375
www.curtisfinancial.com
Distressed Companies
Management Buyouts
Sales, Divestitures, Mergers
EMPLOYMENT CONTACT
kjrudd@curtisfinancial.com
SPECIALTIES
Acquisitions
Capital Raising
President: Kevin J. Rudd

No. of Offices: 2
The Scoop
Transaction and corporate finance advisory
Founded in 1994, Curtis provides a broad range of transaction and corporate finance
advisory services. The firm specializes in providing transaction advisory services for
company sales, mergers, acquisitions and capital raising situations. The corporate
finance advisory services the firm offers complement transaction advisory capabilities
and include fairness opinions, strategic alternatives analyses, corporate valuations
and intangible asset valuations.
An industry leader
Curtis Financial has a reputation as a leader in middle market investment banking
with offices in Philadelphia and Pittsburgh. The firm has completed 40 transactions
in the financial services, life sciences, manufacturing, telecommunications,
consumer products, information technology and manufacturing sectors during the
past four years. Overall, Curtis has completed mergers and acquisitions with over
$1.6 billion in transaction value, financing transactions totaling over $1 billion, over
150 fairness opinions and 1,500 valuation assignments.
Targeting funding and deals

Some of Curtis recent deals have been to obtain funding for clients, not an easy task
given lenders reluctance to make deals. Curtis arranged $35 million in capital to
Vangard Wireless LP in September 2008, which leases antenna platforms to wireless
communications providers. It also arranged the sale of Susquehanna Bancshares
insurance subsidiary to Gunn-Mowery LLC that same month.
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Curtis Financial Group
Getting Hired
Point of contact
Curtis Financial does not provide career information on its website, but you can email
kjrudd@curtisfinancial.com or call its Philadelphia or Pittsburgh offices to find out
more.
102
DOMINION PARTNERS
Liberty Plaza, Suite 104
4801 Cox Road
Glen Allen, VA 23060
Phone: (804) 418-6270
www.dominionpartners.com
EMPLOYMENT CONTACT
SPECIALTIES
Charles Moncure
cmoncure@dominionpartners.com
Rick Naschold
rnaschold@dominionpartners.com
Jonathan Meredith
jmeredith@dominionpartners.com
Capital Raising
Divestitures
Co-Founder: Charles Moncuire

No. of Offices: 1
The Scoop
Helping clients achieve goals
Dominion Partners is an investment banking firm focused on the middle market,
dedicated to working with senior management and business owners in achieving their
strategic and financial goals. The firm was founded in 1996, and has worked for
clients across a number of industries. The firm's principals together have over 50
years of experience and have raised in excess of $3 billion in capital for corporate
clients.
Noteworthy deals
Dominion Partners focuses on deals worth between $5 million to $50 million.
Previous deals have included representing Auto Electric Parts Co. in its sale to Parts
Depot Inc., and American Exposition Centers sale to RTM Capital.
Banking on experience
Charles Moncure founded the company after a pretty long career in the banking
industry. He was formerly with BB&T Capital Markets in Richmond before launching
his own middle market practice. He also spent a decade with Bank of America
Securities in a variety of senior roles. His partner, Frederick T. Naschold, worked with
Moncure at BB&T.

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Dominion Partners
Getting Hired
Team Dominion
Dominion Partners website lists email addresses for Moncure, Naschold and
Jonathan Meredith on its contact us page.
104
EDGEVIEW PARTNERS
201 South College Street
Suite 2000
Charlotte, NC 28244
Phone: (704) 602-3900
www.edgeviewpartners.com
EMPLOYMENT CONTACT
associatecareers@edgeviewpartners.com
President & Partner: Matthew Salisbury
No. of Offices: 2
SPECIALTIES
Advisory Services
Joint Ventures
Private Placements
The Scoop
A subsidiary of CIT
Edgeview Partners is an investment banking firm serving middle market companies,
financial sponsors, and multinational corporations. It focuses primarily on companies
with enterprise values ranging from $15 million to $300 million. The firms services
include mergers, acquisitions, divestitures, strategic advisory, corporate finance,
representation of sellers, and private placement of debt and equity. The company is
a subsidiary of CIT Group Inc., a Fortune 500 company and member of the S&P 500
Index that provides clients with financing and leasing products and advisory services.
Serving the top tier

The firm caters to the aerospace, automotive, consumer products, distribution,
energy, food, manufacturing, media, textiles, technology and telecommunication
industries. The M&A Advisor awarded Edgeview its 2006 Manufacturing-Consumer
Deal of the Year award for its simultaneous sale of Vi-Jon Laboratories Inc. and
Cumberland Swan Holdings Inc. two privately owned, century-old businesses that
were leaders in the manufacture of private-label health and beauty care products
to Berkshire Partners and John G. Brunner. Over the past six years, Edgeview has
closed 95 percent of transaction assignments. The firm does extensive work for many
top-tier middle market private equity groups, including Citicorp Venture Capital, The
Carlyle Group, and Banc of America Capital Investors. About 60 percent of
engagements are on behalf of private equity groups selling portfolio companies. A
little more than a third of engagements involve the sale of closely held businesses.

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Edgeview Partners
From big to small and back again

In 2001, three First Union Corp. bankers left to start their own Charlotte investment
bank. They had once worked for storied boutique Bowles Hollowell Conner & Co. and
wanted to return to their entrepreneurial roots. Six years later, Edgeview Partners,
which provides merger advice to midsized clients, was acquired by consumer and
commercial finance company CIT Group Inc. for an undisclosed sum. Among
Edgeviews founders is Matthew Salisbury, whose impressive track record included a
role as lead partner on the simultaneous sale of Vi-Jon Laboratories Inc. and
Cumberland Swan Holdings Inc. to Berkshire Partners, a deal that was recognized as
the Manufacturing-Consumer Deal of the Year for 2006 by The M&A Advisor.
Getting Hired
Unique opportunities
Edgeview Partners actively seeks candidates, and its middle-market focus and
entrepreneurial
atmosphere
offer
opportunities
for
junior-level
professionals seeking a solid foundation in investment banking.
Email
associatecareers@edgeviewpartners.com for more information on its associate
program.
106
EVERCORE PARTNERS
55 East 52nd Street
43rd Floor
New York, NY 10055
Phone: (212) 857-3100
Fax: (212) 857-3101
www.evercore.com
EMPLOYMENT CONTACT
analystrecruiting@evercore.com
CEO: Roger C. Altman
Firm Type: Public Company
No. of Offices: 6
SPECIALTIES
Advisory Services
Investment Management
The Scoop
Investment management: where its at
Investment banking boutique Evercore Partners devoted a fair amount of activity in
2008 to pumping up its investment management business, making strategic deals in
Brazil, Japan, the U.K. and the U.S. In so doing, its likely that in this shaky economy,
Evercore whose other business consists of advisory services made a wise move.,
Because of the fees investment management companies collect, The New York
Times reported, the business is considered a steadier source of income than the
more volatile deal advisory sector.
Public debut
Founded in 1996 by Blackstone veterans Roger Altman and Austin Beutner, Evercore
went public in August 2006 with an $82.9 million initial public offering. The debut
was astonishing: Revenue increased 47 percent in 2006, to $216.4 million from
$146.3 million in 2005. Net income rose 80 percent, from $22.4 million in 2005 to
$40.5 million in 2006.
In 2007, given a vesting event related to the firms secondary offering, the firm booked
a net loss $34.5 million despite record annual revenue of $340 million. Adjusting for
the accounting loss resulting from the vesting event, though, net income totaled
$51.4 million for the year.
Evercore operates from offices in New York, Los Angeles, San Francisco, London,
Mexico City and Monterrey. It also has alliances in Japan, Brazil and France.

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Evercore Partners
Two core businesses

Evercores advisory services include corporate advisory and restructuring advisory.
The former serves public and private companies, with emphasis on large
multinationals. Corporate advisory services include mergers and acquisitions,
divestitures and sale transactions, special committee and fairness opinion
assignments, and corporate finance advisor. The restructuring advisory business
works with debtors and creditors both in and out of court; its services include
restructuring, raising and structuring DIP (debtor-in-possession) and exit financing,
M&A advice, raising debt and equity financing, expert testimony and fairness
opinions, and general financial analysis.
Evercores investing business manages over $1.2 billion funded by U.S. and
international investors, including corporate and public pension funds, foundations,
trusts, banks, endowments, insurance companies and families. This business is
divided between two private equity funds (Evercore Capital Partners I and Evercore
Partners II), the Evercore Ventures venture capital fund, Evercore Asset Management
and Protego Asesores, a Mexican private equity joint venture with Discovery Capital
Partners. Cornerstones of Evercores private equity portfolios include American
Media, Inc. (publisher of Shape, Fitness, and the National Enquirer), Balkrishna
Industries (a Mumbai-based tire manufacturer) and Sedgwick CMS, a Tennessee
claims management outsourcer.
Investment management expansion aplenty

In April 2008, Evercore announced that the Mizuho Corporate Bank in Japan would
invest $120 million in debts and warrants, earning Mizuho the right to add a director
to the Evercore board and raising funds for Evercores investment management
business. Three months later, in July 2008, the company made its first incursion into
the realm of European investment-management, acquiring a 50 percent stake in
London-based Pan-Asset Capital Management Limited. Pan-Asset, established in
2008 by former Tory minister John Redwood, relied heavily on using low-cost,
exchange-traded funds; it is now known as Evercore Pan-Asset Capital Management
Limited. In June 2008, the asset manager had about $150 million in assets under
management.
Later that summer, in August 2008, Evercore announced an agreement with G5
Advisors, a So Paulo-based investment banking boutique and investment
management firm, to jointly advise on cross-border transactions involving Brazilian
companies. Together, Evercore and G5 will focus on M&A transactions between
Brazilian companies and ones located outside South America. The partnership
should increase Evercores M&A standing in Brazil; in 2008, Thomson Reuters
included it, for the first time, on its list of Any Brazilian Involvement Completed
M&Aranking it No. 22, just behind Barclays.
In September 2008, the company pledged $150 million to help launch HighView
Investment Group, headed by BlackRocks co-founder and former president Ralph
Schlosstein. He and Stone Point Capital, among others, pledged funds totaling
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Evercore Partners
another $450 million. Asset manager HighView will seek to acquire minority interests
in independent alternative asset managers with more than $2 billion in assets under
management, including hedge funds, private equity, distressed debt, real estate,
high-performance equity and fund-of-funds. As part of the deal, Evercore CEO
Altman was named to the HighView board.
Finally, November 2008 saw the launch of Evercore Wealth Management, headed by
Jeff Maurer, former chairman and CEO of U.S. Trust Corporation. Fred Taylor, former
vice chairman and CIO of U.S. Trust, was named EWM senior advisor. The business
will concentrate on high-net-worth clients with more than $5 million in assets.
A few curated hires

Evercore did not rout the rosters of ailing banks as roundly as its competitors, Jefferies
& Co. and Perella Weinberg. But it did hire 25-year Lehman veteran Les Fabuss as
senior managing director for its advisory business. Fabuss was previously vice
chairman of global investment banking. In June 2008, the firm hired former head of
Bear Stearns restructuring unit Daniel A. Celentano as senior managing director. At
Bear, Celentano worked on restructuring projects for General Motors, Time Warner,
Zale Corporation and Andersen Worldwide. Evercore also added Admiral Sir James
Burnell-Nugent to its advisory business; the admiral was made a strategic advisor in
the Evercore London office. Sir James was previously commander-in-chief fleet of the
Royal Navy.
Austin M. Beutner, Evercore president and co-CEO, resigned in May 2008 as a result
of medical procedures related to a bicycle accident. In response, Evercore named
Altman sole CEO, but made no other managerial changes.
The bad, the not-so-great, and the ugly
In the first quarter of 2008, Evercore reported its first quarterly loss since its 2006
IPO. Both its financial advisory and investment management businesses declined.
With the credit crisis turning deal flow from a rushing stream to a trickle, Evercore
was widely expected to bring in less money, said The New York Times. But it
reported earningsor the lack thereofthat were far worse than many analysts had
anticipated. Adjusted pro forma net income was $4.5 million, compared to $16.0
million for the first quarter of 2007. Adjusted pro forma net revenue was $44.5
milliondown from $89.5 million a year earlier.
Those numbers, urged the Times, best be viewed in context: Being such a small
company means that Evercore derives a major portion of its income from just a few
deals. If one does not close by the time the quarter is over, all those fees associated
with the deal are put on hold and reported in the next quarter, it said. Even though
the fees didnt roll in, Evercore still needs to pay its bankers bulge-bracket-level
salaries, which quickly dissolves any meager profit it was able to generate.

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Evercore Partners
Furthermore, unlike its larger cousins, Evercore has no intention of laying off staff,
and is actually growing, the paper pointed out.
In the second quarter of 2008, Evercores adjusted pro forma net revenue was $60.1
million and $104.6 million, compared with $65.9 million and $155.4 million for the
second quarter of 2007. But perhaps its ugliest numbers were in the third quarter of
2008: adjusted pro forma net revenue was $56.8 million and $161.4 million,
compared to $72.4 million and $227.8 million during the same period a year before.
Big-ticket deals
Among its major deals of 2008, Evercore advised Time Warner Cable on its separation
from Time Warner and Rockefeller Financial Services on the sale of a 37 percent
stake to Socit Gnrale's private banking group. And along with Barclays Capital,
Evercore guided Centennial Communications through its $944 million acquisition by
AT&T in April 2008.
Thomson Reuters ranked Evercore No. 24 in worldwide announced M&A (down three
spots from 2007), just behind rival Greenhill & Co and No. 17 for any Americas
involvement announced, beating Greenhill. In U.S. target completed, Evercore
ranked No. 22, down a disappointing 10 spots from 2007 and far outstripped by
competitors Greenhill and Lazard. A bright spot was U.S. target announced M&A, for
which it ranked No. 16, with 22 dealsbeating Greenhill, Perella Weinberg and
Jefferies & Co.
Advising General Motors
At the end of 2008, Evercores William Repko an analyst previously named to the
Turnaround Management Associations Restructuring Hall of Fame was advising
General Motors on its bankruptcy talks. Repko isnt the first Evercore employee to
take on such a role; his boss, Evercore CEO Altman, contributed to the bailout plan
of Chrysler when he was assistant Treasury Secretary in 1979.
UBSs loss is Evercores gain

In January 2009, Evercore Partners hired former UBS Vice Chairman Robert Gillespie
as senior managing director of the companys London division. During his 27-year
tenure at UBS, Gillespie advised clients including Prudential and Vodafone, and
assisted in merging banking groups the company had acquired.
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Evercore Partners
Getting Hired
Check out the site
Evercore says it is constantly seeking talented and team-oriented colleagues to join

the firm. Would-be analysts are encouraged to submit a resume and cover letter to
analystrecruiting@evercore.com, whereas more experienced candidates should
contact recruiting@evercore.com.

111
FOCUS ENTERPRISES
1150 Connecticut Ave., NW
Suite 515
Washington, DC 20036
Phone: (202) 785-9404
Fax: (202) 785-9413
www.focusbankers.com
SPECIALTIES
Corporate Development Consulting
Corporate Finance
Strategic Advisory Services

Strategic Partnering & Alliances
Structured & Project Finance
Wealth Transition Advisory Services
EMPLOYMENT CONTACT
info@focusbankers.com
Founder & Chairman: Marshall Graham
CEO: Doug Rogers
No. of Offices: 5
The Scoop
Middle market managers
FOCUS is a national investment bank that was established in 1982 serves middle
management businesses with revenue between $5 million and $300 million. The
firm is based in Washington, D.C., and has additional offices in Atlanta, Chicago, San
Francisco and Los Angeles. FOCUS cites its systematic, open and proven
transaction process as the distinguishing factor that makes it unique in the clustered
investment banking field.
With longevity comes knowledge, and FOCUSs 27 years in business proves that it has
enough experience to weather any market. FOCUSs catch-phrase, which is service
marked and appears virtually everywhere on its homepage, is Seasoned, Systematic,
Successful. The firm backs up the latter part of that promise by only taking
transactions in which it feels has at least a 75 percent change of success.
FOCUSs services include mergers and acquisitions, strategic advisory, corporate
finance including debt and equity financing, strategic partnering and alliances,
corporate development consulting, wealth transition advisory, and structured and
project finance. The company works with buy- and sell-side corporate clients,
private equity groups, holding companies and early-stage venture capital firms in a
wide range of financial sectors, encompassing everything from aerospace technology
to systems integration.
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FOCUS Enterprises
Experience is key
As for the seasoned portion of the FOCUSs catchphrase, there is evidence that
demonstrates that the company can back that up with fact. FOCUS wants to position
itself as the number company for middle market deals and have recruited veterans of
the business to back up its claims. The firm boasts that all of its partners have
significant C-level experience, and that even its staff is full of former CEOs, COOs
and CFOs. The partners at FOCUS are known to be more hands-on, meaning that
they will assist with M&A deals.
Into the atmosphere

FOCUS started off 2009 by focusing extended efforts into one of its most active
sectors government, aerospace and defense. On January 5th, the firm announced
that it would be starting a formal government, aerospace, and defense group, which
would put additional resources into the sector. The group will be led by Manan Shah
and based out of the mid-Atlantic region. FOCUSs new division is a natural
outgrowth of an already successful business in this sector, which has included
merger and acquisition services as well as capital formation services. The firm will
also beef up its research and marketing efforts directed toward government,
aerospace, and defense, as a result of the new group.
The formation of the new government, aerospace and defense group was the second
industry-focused team the company formed in the past year. In July 2008, the
company announced it would be focusing a team of specialized investment bankers
in a division devoted to software, IT services and transaction processing companies.
Before his appointment as leader of the government, aerospace, and defense group,
Manan Shah served as a member of the IT services group.
First deals of the year

The aerospace sector was central in of one of FOCUSs first completed deals of the
year the sale of Aerospace Products, S.E. (APSE) to Acorn Growth Companies and
Cherokee National Businesses in February 2009. FOCUS represented APSE in the
transaction. APSE is a parts supplier which services aerospace companies in
coordination with U.S. government maintenance requirements. Acorn CEO John
Davis credited FOCUS with helping the deal go through, John Slater of FOCUS was
instrumental in helping the parties work through a number of difficult issues, while
preserving the positive personal relationships with the management team, which were
critical to the companys ongoing success post closing.

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FOCUS Enterprises
FOCUS also completed another government, aerospace, and defense deal in

Febraury 2009 when it advised Newtek International on its merger with Zantech IT
Services. Newtek is a IT services firm, which provides software engineering services
to federal defense and civilian customers. It was acquired by Zantech IT services, a
newly formed information technology services firm which is looking to expand its
customer base through acquisition.
International CFO
In April 2008, FOCUS got a new addition to its top brass when it appointed Frank
Slacik to the position of chief financial officer. Before becoming FOCUSs CFO, Slacik
served as the CFO of JMP Securities, a $100 million institution broker-dealer and
institutional broker-dealer and hedge fund management firm. Slacik also brings
international experience to the position, due to his previous services as financial
controller of Citibank in Prague. FOCUS is extraordinary because its investment
bankers have all held C-level positions in the industry, said Slacik. Clients hire
FOCUS to buy, sell and finance their companies because weve walked in their shoes
and we speak their language.
Still growing
There were additions and promotions made throughout FOCUSs five national offices
in 2008, demonstrating a stable amount of growth even in a troubled economy. In
March, the company beefed up its Chicago office with seven new senior advisors.
Also in March, industry veterans W. Robert Gold and Walter Nielson were tapped to
lead the growing Chicago office as co-managers. The firm also made selected new
hires in the firms Atlanta, Los Angeles, and San Francisco offices.
Keeping busy
There was no shortage of activity for FOCUS in 2008, as the firm closed multiple
merger and acquisition deals in a variety of sectors. Deals include the sale of Soil
Farming to Terra Renewal services, Adayanas acquisition of VERTEX Solutions, and
the acquisition of Avialec International by KAPCO/VALTEC. The company also helped
to secure financing in the form of Series A Participating Preferred Stock to the
software solutions company Agentek. It completed a successful cross border deal as
the representative of India-based Pradot Technologies. Pradot acquired St. Louisbased GroupOne Healthsource in a deal that it says reinforced the trend of foreign
buyers buying U.S. companies through Dual Shore strategy.
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FOCUS Enterprises
Getting Hired
Worth a try
If you want to join the FOCUS team, keep in mind theres no clear path to employment
with the firm via job listings on its website. However, within the firms contact us
section on its site, you can either try charming the firm by emailing it directly at
info@focusbankers.comor you can try pasting in your resume and cover letter
within its online contact form (hey, you never know).

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FOX-PITT KELTON COCHRAN CARONIA WALLER

420 Fifth Avenue, 5th Floor
New York, NY 10018
Phone: (212) 687-1105
Fax: (212) 599-2723
www.fpk.com
Private Equity
Research
Sales
Sales Trading & Market Making
EMPLOYMENT CONTACT
www.fpk.com/x/careers.html
SPECIALTIES
Advisory
Investment Banking
CEO: Giles Fitzpatrick

No. of Offices: 7
The Scoop
Big names, big deals
Fox-Pitt Kelton Cochran Caronia Waller (FPKCCW) had a banner year in 2008. From
acting as co-manager for VISAs $19.7 billion IPO to advising Bank of America on its
historic acquisition of Merrill Lynch, the company went very quickly from being a
virtual unknown to becoming an integral part of some of the biggest deals of the
decade.
Fox-Pitt runs a well-informed ship, with over 60 analysts tracking over 200 bank
stocks in the United States, Europe and Asia. The firm also houses a team of 10
emerging capital professionals who deal in all aspects of ECM, including executing
IPOS, rights issues, secondaries, block trades, buy backs, and dribble programs. On
the advisory side of things, FPKCCW offers traditional M&A, derivative structures,
fairness opinions, financing and strategy. The firm also has an independent private
equity vehicle called FPK Capital, which was launched in fall 2006.
More than a mouthful

Fox-Pitt has been a European institution on the financial scene since its inception in
1971, when Oliver Fox-Pitt and Robin Kelton launched the firm from London. The
company gradually added services and expanded in key North American locations,
including Hartford, Conn., and New York, N.Y. In 1999, the firm was big enough to
catch the attention of Switzerlands reinsurance giant Swiss Re. Under the guidance
of Swiss Re, Fox-Pitt opened offices in Boston and Hong Kong, and sold its
investment management arm, Eldon, to Hiscox Investment Management. In 2006,
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Fox-Pitt Kelton Cochran Caronia Waller
Fox-Pitt Keltons management team and financier J.C. Flowers & Company bought
the firm back from Swiss Re.
On September 4, 2007, the newly independent Fox-Pitt Kelton completed its merger
with its Chicago-based rival Cochran Caronia Waller, which was also a boutique
investment bank focused on the property-casualty, life and health industries. The
firms higher-ups now share power in the combined entity, with former CCW
executives George Cochran and Len Caronia acting as co-chairman, and Fox-Pitt
Kelton CEO Giles Fitzpatrick staying on as chief executive of the new company.
Strategic hires
Fox-Pitt brought on a few new employees in 2008 to help boost up its services in its
strategic advisory and capital raising departments. The first was the additional of
Isolde OHanlon in June 2008. OHanlon was appointed as managing director of the
firms U.S. advisory group. She comes to the firm with more than 20 years of
experience at companies such as JP Morgan Securities. In July, the firm hired Jon
Roddy to head up its North American depository institutions advisory business.
Roddy, who is now based out of the firms New York office, was also given the title of
managing director. His experience comes from over 10 years at many of the
marquee-name investment banks, such as Lehman Brothers and Citigroup. Roddy
became a powerful asset for the firm, when he served as an active member of the
team overseeing the historic deal between Bank of America and Merrill Lynch.
Bargaining for the big boys
Fox-Pitt gained world wide recognition in 2008 by advising on what was easily one of
the biggest deals of all timeBank of Americas acquisition of Merrill Lynch. Along
with J.C. Flowers and Bank of America Securities, Fox-Pitt served as co-advisor to
Bank of America on the more than $50 billion all-stock transaction. The combination
of the two banks created a powerhouse that ranked as the largest brokerage in the
world with more than $2.5 trillion in assets.
The Bank of America deal was headed up by John Roddy, the recently hired head of
the firms North American depository institutions advisory business, and John Waller,
the firms president. Waller told The Deal about the in-house dynamics going on at
the time of the deal. You had the sense that this was historic, but you needed to
stay focused, he said. None of us knew where it would end up. We just knew we
would be in a dramatically different place.
Charge it
Business was booming for Fox-Pitts capital raising team in 2008. The firm was
involved in some of the biggest deals of the year, including acting as co-manager on
VISAs mega-IPO in March, which raised $19.7 billion on its offering of 406 million
shares. The firm also worked as underwriter, advisor or manager on the following
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Fox-Pitt Kelton Cochran Caronia Waller
dealsNatixis 3.7 billion rights issues in September; the $810 billion follow-on
offering of MSCI in July; the 12.2 billion rights issue of the Royal Bank of Scotland;
a $7.5 billion follow-on offering for a pre-bailed-out AIG; and a 5.5 billion rights issue
for Socit Gnrale.
Like a rocket
As a result of the Bank of America/Merrill Lynch deal, Fox-Pitt rocketed up the
Thomson Reuters league tables for 2008. The bank logged an amazing gain in its
activity in category of announced M&A financial advisory deals in the Americas,
shooting it up from 157th place in 2007 to 19th place in 2008. The firms total deal
value for the category was $53.5 billion and 3.5 percent of the total market share for
its nine deals. The rise represents an astounding 5,410 percent increase in deal
value from the firms $972 million the previous year.
The firm also saw a meteoric rise up the Japanese M&A financial advisory charts as
a result of its advisory on the acquisition of U.S. property and casualty insurer
Philadelphia Consolidated Holding Corporation by Japanese insurer Tokio Marine
Holdings. Though it was Fox-Pitts only deal in the region, its value of $4.6 billion
vaulted the firm to 20th place on the charts for announced Japanese M&A advisory
deals. In 2007, Fox-Pitts total business in Japan was valued at just $883.6 million,
and the firm was ranked 30th in Japan.
Getting Hired
Yep, its a mouthful

Despite the fact that the firm seems to be attempting a world record for the longest
company name in history, its website address is blessedly shorter: www.fpk.com.
There, under the careers section, interested applicants can find job information
divided into U.S., U.K. and Asia sectors. But job hopefuls bewarethere arent any
actual listings on the site. Instead, recent graduates are instructed to send a resume
and cover letter to graduateinfo@foxpitt.com. More experienced hires can send their
information to careers@foxpitt.com.
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GEMINI PARTNERS
10900 Wilshire Boulevard
Suite 300
Los Angeles, CA 90024
www.geminipartners.net
EMPLOYMENT CONTACT
info@geminipartners.net
Principal: Matthew Johnson
No. of Offices: 3
SPECIALTIES
Corporate Finance
M&A Advisory
Private Equity
Valuation Services
The Scoop
A bit of background
Gemini Partners Inc. is an investment banking firm that provides financial advisory
services. The firm offers private placements, mergers and acquisitions advisory,
restructuring, divestitures, fairness opinions, and transfer pricing analysis services. It
has strategic alliances with MediaWin & Partners in Geneva, Switzerland. Gemini
Partners also manages a private equity fund and operates its GP Group broker-dealer.
Finding financing
Beyond M&A advisory, Gemini has played a big role in helping companies find
financing. In 2008, the firm was retained as an advisor to Voyant International Corp.,
a digital media company, in raising money through bridge financing. Gemini also
completed a $13 million equity financing for AuraSound, which develops audio
technology; and $11 million of senior debt financings for Telscape Communications
Inc. In addition to its investment banking services, Gemini also selectively invests in
its client companies.
Team Johnson
The firm was founded by the brothers Johnson, Matthew and Nathan. Both have a
long track record in the banking world. Matthew served as a vice president for Credit
Suisse First Boston and Prudential Securities, and later was the chief financial officer
at a Los Angeles-based software startup. Nathan worked with JPMorgan Chase
Capital Partners restructuring a number of portfolio companies where he served as a
CEO or CFO. He also worked at Ford Motor Co. in their treasury office. The brothers
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Gemini Partners
have used their combined experience to buy, sell and run the companies in which
they invest.
Getting Hired
Point of contact
Theres no clear route to employment via the firms website, but you can email
info@geminipartners.net for more information. The firms site also lists contact
information for its management team.
120
GROWTH CAPITAL PARTNERS

363 North Sam Houston Parkway East
Suite 550
Houston, TX 77060
Phone: (281) 445-6611
www.growth-capital.com
Restructuring
Senior Debt
Subordinated Debt
EMPLOYMENT CONTACT
SPECIALTIES
www.growthcapital.com/employment.htm
Company Sales
Management-Led Buyouts
Private Equity
Recapitalization
Founder & Chairman: John T. McNabb

No. of Offices: 4
The Scoop
Private capital and corporate finance
Growth Capital Partners is an investment bank that offers financial advisory and
merchant banking services to private and public middle market companies. The firm
provides mergers and acquisitions, pre-IPO advisory, private placement, strategic
advisory, management-led buyouts, recapitalization, restructuring and strategic
advisory services. All of GCP's activities revolve around the private capital
marketplace and corporate finance activities. Since the firm's inception in 1992, GCP
has completed in excess of 250 transactions, raised more than $1 billion of
institutional capital (through private placements of equity, subordinated and senior
debt), and completed M&A transactions with an aggregate value in excess of $3
billion.
The trusted advisor

The firm caters to energy, consumer and retail, business services, technology and
software, health care, and manufacturing and distribution industries. Clients include
Roofing Supply Group, Silver Eagle Distributors, The SCOOTER Store, Critieria Labs,
Ambion, Rennhack Marketing Services, American Central Gas Technologies, and
Standard Fruit and Vegetable Co. "Our goal is to become the trusted advisor to
entrepreneurs, business owners, and private equity groups, and to provide ongoing
market and execution experience that will enable businesses and shareholders to
meet their growth and liquidity objectives," says founder and chairman John
McNabb.

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Growth Capital Partners
Team McNabb
John T. McNabb, founder and chairman of Growth Capital Partners since 1992, said
his mission is to continue building a premier, client-focused investment and
merchant bank serving both private and public middle market companies. And
McNabb knows something about running a company: He serves on a total of six
public companies listed on the NYSE and Nasdaq. As for hiring, he said the company
is committed to valuing talented, dedicated employees and providing an exceptional
environment that encourages teamwork and professional growth.
Getting Hired
Check the site
If youre interested in working for Growth Capital Partners, your best bet is to check
the employment opportunities page of the firms website for any current openings.
122
GULFSTAR GROUP
700 Louisiana Street
Suite 3800
Houston, TX 77002
Phone: (713) 300-2020
www.gulfstargroup.com
EMPLOYMENT CONTACT
careers@gulfstargroup.com
Managing Director: G. Kent Kahle
No. of Offices: 2
SPECIALTIES
Investment Banking
Merchant Banking
The Scoop
Over 400 transactions
GulfStar Group is a boutique investment and merchant banking firm that offers
financial advisory services to middle market companies. GulfStar Group was founded
in 1990 and is based in Houston. The firm operates as a subsidiary of International
Bancshares Corp., an $11 billion bank holding company. The firm provides merger
and acquisitions, institutional private placements, restructuring and corporate
advisory services. Since its founding, GulfStar has logged 400 completed
transactions involving buyers and sellers from 28 states and six foreign countries.
GulfStar Merchant Banking Ltd. makes direct equity and subordinated debt
investments in private companies.
Areas of focus
The firm has extensive transaction experience across a wide variety of industry lines
and market sector, specializing in companies with revenue or enterprise values
typically between $25 million and $350 million. It mainly caters to aviation, health
care,
financial
institutions,
logistics,
pharmaceutical,
restaurants,
telecommunications, software and construction industries. Its clientele includes
OMNI Laboratories, Trajen, South Waste Services, The Linc Group, Commercial
America Insurance Co., Warren Alloy and Travis Enterprises Inc.

123

Gulfstar Group
Weathering the crisis

Despite the financial crisis, GulfStar has remained quite busy through 2008. The
company acquired Alpha Circuits Inc., sold Polyfoam Products Inc. to 3M Corp., and
recapitalized B27 LLC. There were also deals with Southline Metal Products, Trinity
Steel Fabricators, Strike Construction LLC and P.C. Image Systems. Colt Luedde, a
managing director at GulfStar, said the company is used to operating in both good
times and bad. When is the ideal time to sell a company? While some tout selling
at the top, I believe that selling while there is growth potential is more likely to increase
a prospective buyers willingness to pay a premium price, he said.
Getting Hired
Three decades of growth
To find out more about

careers@gulfstargroup.com.
124
professional
opportunities
at
GulfStar,
email
GW EQUITY
514241 Dallas Parkway
Suite 600
Dallas, TX 75254
Phone: (877)-1792
www.gwequity.com
SPECIALTIES

Valuations
EMPLOYMENT CONTACT
info-us@gwequity.com
President: Ryan Binkley
No. of Offices: 5
Exit Strategy
Fairness Opinions
Management Buyouts
The Scoop
Industries and specialties
GW Equity is an investment banking firm that provides financial advisory services to
construction, manufacturing and wholesale industries. Founded in 1987, the firm
offers sales and divestitures, valuations, management buyouts, mergers and
acquisitions advisory, private placements and restructuring services.
Dedicated to the middle market

The firm remains dedicated to the middle-market business sector, concentrating on
those companies with enterprise values up to $250 million. GW Equity has more than
300 professional advisors and affiliates nationwide. It also runs seminars for business
owners looking to cash out, and has affiliates located globally.
Ranking high
The Dallas-based firm announced this year that it was the third-ranked financial
advisor for U.S. target-announced deals based on number of transactions for
undisclosed values and values up to $50 million, and fifth-ranked for transactions up
to $100 million, according to Thomson Reuters Financial. And that came despite the
overall slowdown in M&A. "We are proud of GW Equity's continued success and
leadership in middlemarket M&A," said Ryan Binkley, president of GW Equity. "These
rankings are reflections of the valuable advice and service we provide to our clients,
ranging from evaluating their business to securing offers and closing deals."

125

GW Equity
Getting Hired
Point of contact
GW Equity doesnt have a dedicated careers page on its website, so your best bet is
to send an email to info-us@gwequity.com or to one of the firms affiliate offices;
emails for those are found at www.gwequity.com/contact.aspx.
126
HARPETH CAPITAL
424 Church Street
Financial Center
Suite 2900
Nashville, TN 37219
Phone: (615) 296-9840
www.harpethcapital.com
Joint Ventures
Recapitalization
SPECIALTIES
President: Charles W. Byrge

No. of Offices: 1
Buyouts
Corporate Finance
Divestitures
EMPLOYMENT CONTACT
www.harpethcapital.com/contact-us.cfm
The Scoop
Firm focus
Harpeth Capital is an investment bank that focuses on middle-market companies with
revenue of $5 million to $250 million. The firm provides mergers and acquisition,
private placement of equity and debt, recapitalization, due diligence, divestitures and
management buyouts advisory services. Additionally, it offers business plan
evaluation, valuations, fairness opinions and restructuring services. The firm focuses
on health care, technology, business services and manufacturing sectors. Harpeth
Capital was founded in 1999 and is based in Nashville, Tennessee.
Pooling 100 years of experience

The firm focuses on health care, technology, business services and manufacturing
sectors. Harpeth's bankers have 100 collective years of experience, and have
executed hundreds of middle market transactions totaling more than $4 billion. The
firm has served as an advisor in deals for companies such as Metal Systems Inc.,
SmartDisk Corp., Health Risk Management Inc., and Wish Holdings LLC.
Bigger is better
The firm has benefited from a merger of two Nashville-based investment banks,
Harpeth and West End Capital Partners. The combination in 2005 helped boost its
focus on asset management, merchant banking and strategic consulting services.
"Harpeth Capital provides a tremendous platform for us to continue the vision we had

127

Harpeth Capital
for West End Capital, providing sophisticated advisory and capital raising services to
middle market public and private companies," said President Charles Byrge.
Getting Hired
Point of contact
Harpeth doesnt provide employment information on its website, but it does list
contact information for Byrge (chuck@harpethcapital.com) as well as director Adam
Landa (adam@harpethcapital.com) and executive assistant Donna Alzubi
(donna@harpethcapital.com).
128
HARRIS WILLIAMS & CO.

1001 Haxall Point
9th Floor
Richmond, VA 23219
Phone: (804) 648-0072
www.harriswilliams.com
Joint Ventures
Sales
EMPLOYMENT CONTACT
SPECIALTIES
Stevie McFadden
careers@harriswilliams.com
Alliances
Buyouts
Corporate Finance
Divestitures
Founder & Managing Director:

Christopher H. Williams
No. of Offices: 5
The Scoop
History and today
Harris Williams is an investment banking firm that provides financial advisory services
to a variety of industries. The firm, headquatered in Richmond, Va., was founded in
1991 and, in 2005, became a subsidiary of PNC Financial Services Group Inc. The
firm offers mergers and acquisitions advisory, management buyouts and fairness
opinions services, and focuses on the middle market, handling merger and
acquisition transactions between $50 million and $1 billion.
Awards
Harris Williams was named Middle Market Investment Bank of the Year in 2007 by
IDD Magazine after logging nearly $9 billion in aggregate transaction volume. The
firm also operates lower middle market specialty group Cobblestone Advisors, which
has advised on M&A transactions representing more than $1 billion in aggregate
value since its founding in 1998.
Across all sectors

Harris Williams focuses on a number of industries, including aerospace; automotive
and heavy duty truck; building products and materials, chemicals, commercial and
industrial equipment, consumer or business services, consumer products,
marketing, energy and power, food and beverage, forest and paper products,
furniture, health care and life sciences, media and entertainment, metal fabrication,
mining, business outsourcing, packaging; retai,; technology, telecommunications,
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Harris Williams & Co.
textiles, and transportation and logistics sectors. Its clientele includes American
Tower Corporation, Procter & Gamble, Schering-Plough, Oglebay Norton, Linesoft
Corporation, Snyder Industries, Pioneer International, Banc One Capital Partners,
Cedar Creek Partners and Allied Capital.
Getting Hired
Explore positions
The Harris Williams website lists current positions for analysts, associates and
seasoned professionals. See www.harriswilliams.com/careers/index.php.
130
HEADWATERS MB
5200 17th Street
One Tabor Center
Suite 900
Denver, CO 80202
Phone: (303) 572-6000
www.headwatersmb.com
SPECIALTIES
Corporate Finance
Divestitures
Fairness Opinions
Global Deals
Joint Ventures
Leveraged Buyouts
Restructuring Analysis
Valuation Services
EMPLOYMENT CONTACT
www.headwatersmb.com/pages/rc_conta
ct.php
Founder & Chairman: Dave Maney
No. of Offices: 3
The Scoop
Partnering with clients
Headwaters is an investment banking firm that offers financial advisory and merchant
banking services to middle market companies. The firm provides mergers and
acquisition, capital-raising, debt financing, restructuring, valuation and strategic
advisory services. And the MB in Headwaters MB stands for merchant banking.
The firm says it wont take a company on as a capital formation client unless its also
willing to put its own money into the transaction. It operates the Rio Grande
Investment Partners fund, which has developed a track record investing solely in
Headwaters investment banking client companies. Headwaters says it has
completed $4 billion in transactions in just the past three years.
Cross-border transactions
Founded in 2001, Headwaters MB focuses on a number of industries. Those include
health care, industrials, consumer products, media, energy, business services,
technology and communications. Clientele includes Freewave Technologies Inc.,
Ariat International, and X Rite, OverniteExpress and TeleTech. The company has also
completed $722 million of cross-border transactions, and was awarded the 2006
International/Cross-Border Deal of the year by The M&A Advisor. The company's
board of directors includes retired U.S. Air Force Lt. General Richard Scofield.

131

Headwaters MB
Maney in the media

Founder and Chairman Dave Maney is no stranger to publicizing his firm. Hes been
a regular on Fox Business, especially Studio B with Shepard Smith. Hes appeared
on Larry Kudlows CNBC program, and theres no shortage of YouTube videos. Hes
also handy with a guitar. The banker has penned songs about deals for the middle
market banks annual Christmas e-card since 2002, including hits like The
Sarbanes-Oxley Blues.
Getting Hired
Tell them why youd fit in
If youre interested in a career at Headwaters MB, go to the recruiting section of the

firms website and submit your information; according to the site, the firm is always
looking for great people.
132
HERITAGE CAPITAL
225 Water Street
Suite 1250
Jacksonville, FL 32202
Phone: (904) 354-9600
www.heritagecapitalgroup.com

Private Placement
Sales & Divestitures
Value Enhancement
EMPLOYMENT CONTACT
SPECIALTIES
Business Valuations
Global Deals
Joint Ventures
Management Buyouts
inquiries@heritagecapitalgroup.com
President & Principal: C. Donald
Wiggins
No. of Offices: 1
The Scoop
Championing the middle market
Founded in 1977, Heritage Capital Group is an investment banking firm that provides
financial advisory services. The firm offers mergers and acquisitions, sales and
divestitures, capital placement, business valuation, management buyout, finance and
strategy planning, and joint venture advisory services. The company is also a
founding member of M&A International, one of the world's biggest alliances of firms
focused on middle market transactions. Heritage Capital represents both buyers and
sellers and is typically engaged by the owners, chief executive officer, or chief
financial officer of client companies. Clients operate in a wide variety of industries
and generally have revenue of $5 million to $300 million.
Expertise and clientele

The principals at Heritage have expertise in investment banking, business operations,
deal structuring, and corporate finance. The firms clientele includes Almanac
Publishing, Envirotech, HP Reid, Superstocks, Inc., Ramworks and PetLovers.
Recent deals
In May of 2008, Heritage announced that it had successfully completed the sale of
ITEL, a leading independent testing laboratory servicing the property insurance
industry nationwide, to The Riverside Company, a global private equity firm. In 2007,
Heritage successfully completed a transaction for an investment in Administar

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Heritage Capital
Services Group, LLC, by Prairie Capital, LLC. Heritage served as intermediary and
financial advisor to Administar on the transaction.
Getting Hired
Point of contact
If youre interested in working

inquiries@heritagecapitalgroup.com.
134
for
Heritage,
send
an
email
to
HERRERA PARTNERS
600 Jefferson
Suite 1080
Houston, TX 77002
Phone: (713) 978-6590
www.herrera.com
SPECIALTIES
EMPLOYMENT CONTACT
www.herrera.com/contact.html
Founder & Chairman: Gilbert A.
Herrera
No. of Offices: 1
Compliance
Debt & Equity Placements
Restructuring/Turnarounds
Valuations
The Scoop
Background and offerings
Herrera Partners is an investment banking firm that offers financial advisory services.
The firm offers merger and acquisition, private placement, capital restructuring and
reorganizing advisory services. Additionally, it provides corporate valuation, regulatory
compliance, fairness opinions and legal consulting services. Herrera Partners is the
successor to G.A. Herrera & Co., LLC, which was originally established in 1992. It
also focuses on litigation and consulting, particularly with regard to SEC compliance
and valuations.
A targeted emphasis
Herrera Partners specializes in distributors and contractors in the energy,
telecommunications, food products and health care markets. This focus has enabled
the firm to attract clients and recruit professionals seeking a firm with a similar
emphasis. The firm has represented companies like Dos Gringos Inc., Goode Co.,
Horizon Merchants Inc. and Trilogy Systems Corp. Herrera Partners also provides a
range of analytical and advisory services to publicly traded and privately held
corporations, partnerships, financial institutions, law firms, accounting firms and
high-net-worth individuals involved in complex transactions, operational matters,
agreements and contract disputes.

135

Herrera Partners
Leadership
Gilbert Herrera, founder of Herrera Partners, was previously the director of Coopers
& Lybrands Southwest region corporate finance group. He also held various
investment and commercial banking positions with organizations that are now part of
Chase Bank.
Getting Hired
Point of contact
Herrera doesnt advertise employment opportunities on its website, but its contact
page includes an inquiry form you can fill out and submitthe directions promise
that your inquiry will be directed to the appropriate contact.
136
HYDE PARK CAPITAL ADVISORS

701 North Franklin Street
Tampa, FL 33602
Phone: (813) 383-0202
www.hydeparkcapital.com
SPECIALTIES
EMPLOYMENT CONTACT
www.hydeparkcapital.com/contactus.aspx
Senior Managing Director: John H. Hill
No. of Offices: 1
Fairness Opinions
Private Placements
The Scoop
Focused on the southeast
Hyde Park Capital Advisors is an investment banking firm that offers corporate
finance advisory services in Florida and the southeastern part of the United States.
The firm provides mergers and acquisitions, raising capital, private placements,
recapitalization, fairness opinions and mezzanine financing advisory services.
Founded in 2000, the company's bankers have advised on more than 300 corporate
investment banking transactions totaling more than $10 billion in value.
Industries and clients

The firm serves a variety of industries, including health care; technology,
communications and media; financial services; business services; industrial,
manufacturing and distribution; consumer and retail. Hyde Park has advised
companies including Coleman Technologies, Inc., Isolux America Corp., Genetic ID,
Riviera Jet Airways and MM Venture Partners.
Hill takes on Florida, casts wide net

John Hill, Hyde Parks senior managing director, said the company focuses on getting
investors around the country, not just in Florida. In Florida, there's very little early
stage money, so I see that emerging company category as being very, very
challenged. That's why we spend a lot of time talking to venture capital firms in
Boston and New York, but it's very hard to get them to travel, he said in a recent
interview.
137

Hyde Park Capital Advisors
Getting Hired
Point of contact
Hyde Park doesnt have a dedicated careers page on its website, but you can submit
an electronic form via its contact us page to reach someone at the firm.
138
IRONWOOD CAPITAL
55 Nod Road
Avon, CT 06001
Phone: (860) 409-2100
Fax: (860) 409-2120
www.ironwoodcap.com
Healthcare
Manufacturing & Distribution
EMPLOYMENT CONTACT
info@ironwoodcap.com
SPECIALTIES
Business Services
Consumer Products
Education
Environmental Services
President: Marc A. Reich

No. of Offices: 2
The Scoop
An iron force on the East Coast
Over the years, Ironwood Capital Ltd. has honed its specialty in the realm of middle
market deals.
Under parent Ironwood Capital Ltd. and established in 1991,
Ironwood Capital exists as the investment unit of the firm. And through Ironwood
Equity Fund and Ironwood Mezzanine Fund, Ironwood Capital works on buyouts and
recapitalizations in addition to acquisitions.
Ironwoods investment capital comes from a variety of sources, including insurance
companies, banks and parent Ironwood Capital Ltd. The firm boasts serving as
principal in more than 40 transactions since 2002, and prior to that, the firm worked
on more than 100 deals that raised more than $5 billion in capital. As of 2008,
Ironwood had about $300 million of capital under management. The firms
headquarters is located in Avon, Conn., and it has an additional office in Boston.
Up to par?
For Ironwood to want to invest in a company, the business first has to meet a few
criteria. Geographically, Ironwood seeks out firms that are located in the east
(preferably east of the Mississippi River, according to Ironwood). Secondly, the firm
should have total revenue anywhere from $10 million to $200 million. Finally,
Ironwood looks for a company that appreciates diversity, preferring to invest in
businesses owned by women and/or minorities. Its ultimate goal is to achieve growth
for a company over the course of three to five years, at which point Ironwood will
usually sell off its investment.

139

Ironwood Capital
A few wild cards

Keeping with its diversity theme, the firm practices what it preaches, currently holding
an assortment of businesses in its portfolio. The companies in Ironwoods collection
truly run the gamut, ranging from environmental services to consumer products
sectors. The specific businesses Ironwood holds are pretty colorful as well, ranging
from fountain drink manufacturer Als Holding to Micro Precision, which makes
locomotive air horns.
Getting Hired
Breaking in
Snagging a job at Ironwood Capital Ltd. may take a little bit of ingenuity. The firms
website doesnt have a specific section for wannabe job seekers. But candidates who
aspire to work at Ironwood (or those who have a detailed business plan theyd like
Ironwood to consider) may have luck emailing a cover letter and a resume to
info@ironwoodcap.com.
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JANES CAPITAL PARTNERS

19200 Von Karman Avenue
Suite 600
Irvine, CA 92612
Phone: (949) 477-8060
Fax: (949) 477-8061
www.janescapital.com
SPECIALTIES
ESOPs
Management Buyouts
Recapitalizations
Special Situations/Distressed M&A
EMPLOYMENT CONTACT
janescapital.com/recruiting.html
Chairman & CEO: David A. Janes
No. of Offices: 2
The Scoop
Fly away with JCP
Janes Capital Partners has focused on acquiring companies with values ranging from
$20 million to $250 million since its inception in 1997, specializing in U.S. Reverse
Merger Transactions (RTOs) in the aerospace and defense sector. (When a reverse
merger takes place, shareholders of a private company buy control of a public
business and merge it with theirs. Afterward, shareholders of a private company get
a majority of public company shares. Such a deal is appealing for both sides in that
it can be closed quickly, sometimes within weeks.) Janes prides itself on creating
customized plans for each business, especially ones hoping to cash out on their
company. JCP calls Irvine, Calif., home, and has a satellite office in Los Angeles as
well.
The firms clients range from Fortune 500 companies to small business owners.
Recent deals the firm has been involved with include advising Frontier Systems on its
acquisition by the Boeing Company, United Aircarft Products acquisition by Triumph
Group and Able Corporations acquisition by Smiths Aerospace.
The big bosses

Chairman and CEO David A. Janes formed Janes Capital Partners in 1997, after
serving as CEO of California Manufacturing Enterprises since 1977. Janes right-hand
man is co-founder Stephen R. Perry, also a managing director of JCP who
concentrates on M&As, recapitalizations, ESOPs in addition to bankruptcies and
insolvencies. In addition to its two fearless leaders, the firm has a team of dealmakers
to assist companies with transactions. JCP also emphasizes its domestic and
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Janes Capital Partners
international relationships with firms across the globe in order to give its clients
choices when it comes to selloffs.
Getting Hired
Foot in the door
Your best bet to get hired on with Janes Capital Partners is to first check out
janescapital.com/recruiting.html, where the firm lists full-time job openings as well as
internships (just make sure you study hard beforehandthe firm notes that it only
considers intern candidates in the top 10 percent of their class). Either way, if you
think you have what it takes, send an email with your materials to
hr@janescapital.com.
142
JEFFERIES & COMPANY

520 Madison Avenue., 12th Floor.
New York, NY 10022
Phone: (212) 284-2300
www.jefferies.com
SPECIALTIES
EMPLOYMENT CONTACT
www.jefferies.com/careers
Chairman & CEO: Richard B. Handler
No. of Offices: 23
Asset Management
Investment Banking
Private Client Services
Research
Sales & Trading
The Scoop
Keeping his eye on a better tomorrow
Richard B. Handler, chairman and CEO of Jefferies Group, called 2008 the most
challenging year of our lifetimes. Among those challenges: a full year of losses,
$60.5 million in the first quarter alone; layoffs that decreased headcount from 2,508
at the beginning of 2008 to 2,150 at the end of the year; and closures of offices in
Dubai, Singapore and Tokyo. But Handler tempered the bitterness with optimism,
emphasizing that Jefferies will begin 2009 with its strongest opening balance sheet
ever: zero in bank borrowings, more than $1.2 billion in cash, and an average
maturity date of 14 years for long-term debt.
From the Pacific coast to the world

Boyd Jefferies eponymous firm was established in 1962 with a $30,000 business
loan and one employeea floor runner. The two began conducting business on the
Pacific Coast Stock Exchange floor. Along the way, Jefferies recognized that
institutional investors often wanted to trade large blocks of stock without making an
impact on the market (or tipping their hand to other traders) but had no mechanism
for doing so. He began catering to these investors, discreetly matching large
institutional buyers and sellers off the exchange.
So-called third-market trading is standard practice today, but in the 1960s, it was a
novel idea. Jefferies prospered, becoming a respected equity trading firm and
launching an IPO in 1983. Expansion followed in the 1990s, as Jefferies began
offering investment banking, asset management and research services. The firm also
opened offices throughout North America, Europe and Asia; today it maintains a
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Jefferies & Company
presence in 16 offices in the U.S., the U.K., France, Germany, India, China and
Switzerland.
Jefferies offers investment banking, sales and trading, research and asset
management services to mid-sized companies in several industry sectors, including
aerospace and defense, energy, financial and business services, gaming and leisure,
health care, industrials, maritime and oil services, media and communications, retail
and consumer products and technology. Theres also a dedicated private equity
coverage group that links industry and product groups, and maintains relationships
with mid-sized American private equity funds and hedge funds.
Jefferies partners up
In April 2008, holding company Leucadia National Corporation purchased a 13.7
percent interest in Jefferies. The stats: Jefferies handed over 26.6 million shares and
$100 million in cash in return for 10 million shares of Leucadia. As part of the deal,
Ian M. Cumming, chairman of Leucadia, and company President Joseph S. Steinberg
were appointed to the Jefferies Board. The terms of the deal stipulate that Jefferies
can sell Leucadia stock, which it will do to raise some much-needed cash for
investments.
The two companies had done business before: in 2007, both had agreed to invest up
to $600 million apiece in a new high-yield trading operation.
Growth amid decreasing numbers

Although Jefferies laid off some 300 workers in December 2008, it devoted much of
the rest of the year to beefing up groups devoted to fixed income, restructuring and
commodities. The firm also benefitted big -time from the demise of Bear Stearns,
hiring 25 executives for its equities division. Among those hires was Robert L.
Harteveldt, who joined as chairman of fixed income and who was also named to
Jefferies executive committee. At Bear, Harteveldt was head of high-yield, distressed
and loan sales.
In April 2008, the company lost its co-heads of restructuring, managing directors
William Derrough and Thane Carlston, to Los Angeles-based boutique investment
bank Moelis. Another restructuring team member, Tim OConnor, joined brokerdealer Broadpoint Capital. In response to these defections, Jefferies appointed
Michael J. Henkin and Steven R. Strom, both managing directors, to lead its
restructuring group. The two oversee a team of 40 devoted to advising firms in
financial distress, as well as creditors, stakeholders, and potential purchasers. In July
2008, Jefferies added Frank A. Merola to its recapitalization and restructuring efforts.
Merola was previously an attorney with Los Angeles-based Stutman, Treister & Glatt,
P.C, where he specialized in business reorganization and bankruptcy. Restructuring
is big business at Jefferies; as of April 2008, the firm was advising on more than 20
restructuring deals worth an aggregate of $25 billion.
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Jefferies & Company
Also in April, the firm announced the expansion of its fixed income division. It hired
Thomas Thees from AXA Capital Management, where he was COO. And it
aggressively expanded its mortgage-backed securities group, intended to focus on
trading, origination and sales of mortgage-backed securities. Those appointments
included William H. Jennings II and Johan Eveland, who both joined from RBS
Greenwich Capital and were named co-heads of Jefferies mortgage trading group.
Jennings was a managing director in the mortgage sales division; Eveland, co-head
of agency and non-agency mortgage backed securities trading. The firm also added
four managing directors focused on mortgage sales and four others who specialize in
non-agency adjustable rate mortgage, credit, derivatives and non-fixed rate lending.
And in October, it hired Chander Gupta as head of European asset-backed and
mortgage-backed securities trading from Royal Bank of Scotland, and Thomas Dolan
as head of whole loan trading and sales from ABN Amro. Those hires brought the
Jefferies fixed income team to more than 150. Though risky, according to Market
Watch Jefferies decided to stare down the barrel of the mortgage-backed securities
gun in order to take advantage of a glut of newly available talent.
Finally, the firm expanded its commodities department with senior-level hires: 20-year
Goldman veteran James P. Crimmins, a lead architect of the Goldman Sachs
Commodity Index, was made managing director of Jefferies Asset Mangement
Commodity programs division; and Thomas H. Dering, previously a senior vice
president at Morgan Stanley, was named senior vice president of Jefferies Financial
Products, the department devoted to commodities sales and trading. It also added
two female commodities professionals, Kathy Kriskey and Nina Long, who were made
senior vice president and vice president, respectively, of Jefferies Financial Products.
Both joined from UBS, where Kriskey had been an executive director of the U.S.
commodity investor index, and Long, a commodity trader.
Quarterly bitter pills

Results from the first quarter of 2008 were painful. Net revenue was down 52
percent, to $201.2 million, from $418.8 million in the first quarter of 2007. Jefferies
High Yield Trading lost $51 million; Jefferies Asset Management, $34 million; and
investment banking revenue came to only $99 million. Net loss was $60.5 million,
compared with net earnings of $62.3 million for the first quarter of 2007.
The second quarter wasnt nearly as painful, with a net revenue of $392 million and
a net loss of $4.4 million after $15 million in severance costs. But third quarter
results disappointed; the firm closed out with a net loss of $31.8 million, $11 million
of which was owed Jefferies by Lehman.
M&A still going strong

Among its deals in 2008 was the underwriting of the IPO of Greek shipping company
Safe Bulkers, which Jefferies completed in May 2008, along with Merrill Lynch and
Credit Suisse. In July 2008, Jefferies backed a deal brought by Sir Ronald Cohen,
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Jefferies & Company
co-founder of Apax Partners, who sought a management buyout of International Asset

Management, the former hedge fund arm of ABN Amro Fortis. Fortis had purchased
International Asset Management in 2006, when ABN broke up. The Financial Times
estimated the deal in the low hundreds of millions. Amid a wave of consolidation in
the fund of hedge funds sector, which has seen banks expanding in the high margin,
but increasingly competitive, business, the buyout, it said, was unusual.
In spite of its losses in 2008, Jefferies still ranked well according to the Thomson
Reuters league tables. It was No. 9 in worldwide announced M&A, based on imputed
fees, in deals with values up to both $50 million and $200 million; No. 7 for deals up
to $100 million; and No. 11 for deals up to $500 million. For U.S. targeted deals
based upon number of transactions, it came in at No. 6 for deals up to $200 million
and $500 million behind rival Houlihan Lokey Howard & Zukin in both categories.
But it made a good showing in each division, with $2,094 million and $5,599 million
in deals, respectively.
Ready to rumble?
In a year-end statement, Jefferies CEO Richard B. Handler Jefferies said the company
is poised to restore profitability in 2009. It will have to, if its to maintain its place as
a boutique bank seeking to put the M&A squeeze on such large competitors as
Morgan Stanley and Goldman Sachs.
Getting Hired
Opportunities await
Jefferies says its hiring for positions in several of its U. S. offices as well as in Europe
and Asia. Applicants to its analyst or associate programs in investment banking can
apply to be part of the generalist, aerospace & defense, energy or technology groups.
While Jefferies recruiting efforts focus primarily on analyst and associate levels, the
firm welcomes resumes from undergraduates and experienced professionals. See
the Jefferies website for more information and to fill out the firms online application.
146
JMP SECURITIES
600 Montgomery Street
Suite 1100
San Francisco, CA 94111
Phone: (415) 835-8900
Fax: (415) 835-8910
www.jmpsecurities.com
SPECIALTIES
EMPLOYMENT CONTACT
See careers under about JMP
Securities at www.jmpsecurities.com
Chairman & CEO, JMP Group: Joseph
A. Jolson
Firm Type: Subsidiary of JMP Group
No. of Offices: 4
Investment Banking
Research
Sales & Trading
The Scoop
JMP Securities prides itself on its research, which it calls the backbone of its
company. To that end it holds an annual research conference, and its analysts
regularly turn up on industry best-of lists. In 2008 that honor went to William Marks,
a JMP researcher who focuses on real estate and leisure services, and whom Forbes
named No. 6 among its top brokerage analysts.
Parent goes public

JMP Securities is one of two subsidiaries operated by JMP Group Inc. (the other is
JMP Asset Management). Founded in 1999, San Francisco-based JMP Group spent
many years insisting it wouldnt follow other boutiques down the IPO road, but in
February 2007, it filed to go public. Its own JMP Securities, as well as Merrill Lynch
and Keefe Bruyette & Woods, were signed on as joint book runners, and in May 2007
eight million shares were priced at $11 each. Although many boutique banks met
with resistance when their IPOs launched, analysts had a rosier outlook for JMP, citing
its diverse lines of business and strong earnings potential.
Business at JMP Securities is divided between investment banking, equity research,
and institutional equity sales and trading. Its industry focus falls on six sectors:
business services, consumer, financial services, health care, real estate and
technology. Clients include public and private companies. The firms headquarters
are in San Francisco, with branch offices in New York, Chicago and Boston.

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JMP Securities
Belief in boutiques
Joseph A. Jolson, Carter D. Mack and Gerald L. Tuttle Jr. founded JMP Group in 1999
and opened JMP Securities at the start of 2000. The trio had previously worked
together at Montgomery Securities, which was purchased in 1997 by NationsBank
Corp. and now operates as part of Bank of America. Following the sale of
Montgomery, Jolson, Mack and Tuttle decided to jump ship and create their own
investment bank. They didnt like watching top-quality independent research
boutiques get swallowed up by big commercial banks and figured that the best
solution was to create their own firm. Instead of trying to compete for business with
bulge bracket banks focused on large corporate clients, the trio pledged to serve
small and mid-sized companies, which were becoming increasingly ignored by Wall
Street conglomerates.
To get the firm off the ground, CEO Jolson employed some unusual business
practices. In the early years, he capped all base salariesincluding his ownat
$100,000. He also encouraged multitasking: He personally covered several specialty
finance companies for JMP Securities research arm, while simultaneously getting
JMP Asset Management running. In 2002, he attracted former Montgomery
Securities partner Craig R. Johnson to help build the firms equities business. And,
indeed, JMP grew by leaps and bounds, nearly tripling headcount to more than 200
in the ensuing six years.
JMP also made an early decision to avoid focusing solely on emerging growth
opportunities. In contrast to many of its competitors, the firm organized its research
department to cover old economy sectors like financial services, as well as more
cutting-edge industries like high technology. Today, Jolson remains CEO of JMP
Group and Johnson serves as its president; both men attend to the operation of JMP
Asset Management and its asset-gathering strategy. Co-founder Mack and Mark L.
Lehmann serve as co-presidents of JMP Securities; Mack directs investment banking,
and Lehmann oversees equities.
You can sell them short

In November 2008, following the ban on short-selling put in place by the Securities
and Exchange Commission (SEC), JMP Securities requested to be removed from the
list of firms illegal to short.
A few key hires

In April 2008, the firm added four people to its institutional sales division, who will
focus on institutional and ultra high-net-worth clients investing in life sciences. Three
hires came from ThinkPanmure: Pascal Besman, a managing director; Alexander
MacCormick, a director; and Joshua Levin, a sales assistant. Leah Batkiewicz, an
associate, joined the firm after earning her PhD from Columbia Universitys Institute
of Human Nutrition, where she studied stem cells, hematopoiesis and acute myeloid
leukemia.
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JMP Securities
In January 2009, JMP hired Alex Gauna, Peter Martin and Allan Rimland as
managing directors. Gauna focuses on the semiconductor industry; he joined JMP
from UBS. Martin joins from Matthes Capital, a hedge fund; he focuses on the health
care services and health care real estate industries. Rimland joined from Wachovia
Capital Markets and was named JMPs co-head of health care services investment
banking practice.
Finally, in May 2008, JMP announced the appointment of Harris Barton and Kenneth
Karmin as independent directors, bringing JMP Group's total number of board
members to nine. Barton is managing partner of HRJ Capital, a manager of private
equity and hedge funds of funds; he is a former footballer for the San Francisco
49ers. Karmin is a principal of High Street Holdings, a diversified investment
company, and is CEO of Ortho Mattress.
Plenty of deals
JMP acted as a co-manager for follow-on offerings of a number of firms in 2008,
among them: SuccessFactor ($104.2 million); MFA (for $319.7 million in May and
$265.9 million in January); KKR Financial ($408.8 million); Capstead ($133.3
million); Chimera Investment Corp ($247.5 million); CapitalSource ($379.5 million)
and Anworth Mortgate Asset Corporation ($143.9 million).
The firm also served as co-manager for the IPOs of American Capital Agency ($200
million); Hatteras Financial ($276 million); Rackspace Hosting ($187.5 million); and
the $500 million IPO of MagnaChip, which is still pending.
Also in 2008, JMP was the sole placement agent for private placements of Americrest
Homes ($56.6 million) and Celleration ($30 million), and acted as sole placement
agent for New York Mortgage Trusts $60 million PIPE.
Finally, it advised BasePoint on its August 2008 sale to Actimize; Mirius on its $129
million September sale to Roche; and 90Degree Software on its March sale to
Microsoft; and Hands on VRS on its $138 million sale to GoAmerica.
Also in 2008, The New York Times reported that Artes Medicala a medical technology
company that produces ArteFill, an FDA-approved injectable for erasing so-called
smile lines, had retained JMP Securities as an advisor as it explores financing
opportunities and strategic opportunities.

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JMP Securities
Getting Hired
Meet the challenge
At www.jmpsecurities.com under the careers link, prospective job candidates can
read about JMPs mission. JMP says its looking for extremely motivated people who
can thrive in the firms challenging, dynamic environment and who will mesh with
its senior executives.
The California-based JMP does some regional recruiting; those who cant find a JMP
recruiter on their campus are advised to submit a cover letter and resume directly to
the firm (resumes@jmpsecurities.com).
150
JPS CAPITAL CORPORATION

5335 Far Hills Avenue
Suite 224
Dayton, OH 45429
Phone: (888) 275-8044
Fax: (937) 435-9850
www.jpscapital.com
EMPLOYMENT CONTACT
info@jpscapital.com
President: Joe Siggins
No. of Offices: 1
SPECIALTIES
Growth Capital
Strategic Alliances/Collaboration
The Scoop
Straight outta Dayton
JPS Capital Corporation, headquartered in Dayton, Ohio, is a boutique investment

banking company that hones in on cornering transactions in the middle market. The
firm considers its industry expertise to be fairly broad-based, encompassing
everything from technology and financial and business services to biotechnology and
health care. When it comes to selloffs, the firm markets itself as primarily
performance-based, but does still charge fees and retainers (although JPS notes that
its fees are typically substantially below Wall Street firms). The firm works on deals
in its growth capital, mergers and acquisitions and strategic alliances/collaboration
departments. JPS also concentrates its efforts on middle market private companies
with revenue between $10 million and $500 million.
Through the years

JPS Capital established its investment banking services in 1994 and, to this day, still
represents hundreds of public and private companies. Its fundamental objectives, it
says, are to professionally represent business owners in maximizing the value of the
companies they have worked so hard to build, and to provide an unparalleled
acquisition search program to large public or private companies completing strategic
acquisitions.

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JPS Capital Corporation
The big three

Within its mergers and acquisitions department, the firm works on deals that
encompass company sales and acquisition programs. The firm also has an
international division within its mergers and acquisitions unit that focuses on global
companies who are looking to enter the U.S. market through either acquisition or
partnerships.
The firms growth capital department has subdivisions focusing on private equity
capital for private companies as well as venture capital. Under the venture capital
division, new businesses are advised by JPS regarding ways they can raise capital in
order to meet their initial startup goals.
JPS Capitals strategic alliances/collaboration branch encompasses its biotechnology
investment services and health care investment services sectors, which both seek out
to take advantage of industry trends through mergers, acquisitions, strategic
partnerships and procuring capital.
Getting Hired
Give it a shot
JPS Capital doesnt seek out new job candidates on its web site, but those who are
interested in pursuing a career with the firm can still try using their powers of
persuasion. Hopeful JPS Capital workers can try emailing a cover letter and resume
to info@jpscapital.com.
152
KEEFE, BRUYETTE & WOODS

The Equitable Building
787 Seventh Ave., 4th Floor
New York, NY 10019
Phone: (212) 887-7777
Fax: (212) 541-6668
www.kbw.com
SPECIALTIES
Fixed Income Capital Markets
General Advisory
M&A Advisory
Mutual Thrift & Insurance Company
Conversions
Structured Finance
EMPLOYMENT CONTACT
recruiting@kbw.com
CEO: John Duffy
Firm Type: Subsidiary of a Public
Company
No. of Offices: 10
The Scoop
Capital raising in its future
Keefe, Bruyette & Woods blew through the first three quarters of 2008 posting
mounting losses. As a result, in September it filed a universal shelf statement, which
permits it to raise capital through a secondary offering of shares.
Three-leafed clover
KBW, Inc. is the parent firm of three subsidiaries: Keefe, Bruyette & Woods, its
American investment banking business; Keefe, Bruyette & Woods Limited, its
international operation; and KBW Asset Management. All three parts of the firm focus
on the financial services and institutions sector.
Keefe, Bruyette & Woods Inc. serves banking and insurance companies,
broker/dealers, mortgage banks, asset management companies, REITs, specialty
finance firms and securities exchanges. Its services include mergers and acquisitions
advisory, general financial advisory, equity capital markets, fixed income markets,
mutual thrift and insurance company conversions and structured finance.
Overcoming all obstacles

Formerly headquartered in the World Trade Center, Keefe, Bruyette & Woods lost 67
employees in the September 11 attacks. The firm fought hard to rebuild, and in 2003
it opened a new, permanent New York office in midtown Manhattan. (Group CEO
John Duffys book Triumph Over Tragedy details the firms rebuilding process.)

153

Keefe, Bruyette & Woods
In November 2006, KBW, Inc. completed the final phase of its post-September 11
recovery by launching an IPO of 6.8 million shares. Priced at $21 a share, the
offering was also an opportunity for Keefe, Bruyette & Woods, Inc. to work with Merrill
Lynch as joint bookrunners. Within days the firm sold the full slate of shares at the
top end of its expected price range, reaping nearly $143 million. Analysts were
impressedKBW wasnt the only boutique bank to go public, but it was one of the
few whose offering was so successful.
Capital raising on the shelf

In the wake of disappointing returns, KBW filed a universal shelf registration
statement in September 2008 that enables the firm to sell, in one or more public
offerings, common or preferred stock, debt and other securities.
In a statement, the company said that it has no current plan to raise capital. But
the registration allows KBW access to public markets in order to facilitate and
expedite opportunities for growth, said chairman and CEO John Duffy. He added
that since KBWs 2006 IPO, a significant portion of our outstanding common stock,
owned by employees, has been subject to restrictions on transfer and sale. Those
restrictions are scheduled to begin to expire shortly. The shelf, he concluded, allows
employees to effect a secondary offering on the shares they own.
New hires for a new group
In February 2008, the firm hired Frederick Kannon as associate director of research
and chief equity strategist, a new position. Cannon joined from Golden State
Bancorp, where he was executive vice president, director of investor relations and a
member of the operating committee. Cannons hire will help KBW to boost its
research capabilities, for which it has been historically lauded by the industry.
In May 2008, the company hired three bankers from Wachovia Securities to staff its
newly formed real estate investment banking group. They are Michael Hawkins,
Robert Woomer and Christopher Haney. Hawkins and Woomer joined as principals;
Haney as an associate. The group also includes John Dalena, and focuses on public
and private real estate companies and their capital needs.
Earnings
In the first quarter of 2008, the firm announced an operating net loss of $6 million,
compared with net income of $9.5 million for the first quarter of 2007. In the second
quarter of 2008, KBW posted an operating net loss of $7.8 million, compared with a
net income of $12 million in the second quarter of 2007.
Things only got worse in the third quarter of 2008, when the firm announced a nonGAAP operating net loss of $21.3 million. According to CEO Duffy, investment
banking and merger and acquisition activities suffered. But, he said, the firms cash
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Keefe, Bruyette & Woods
equity business performed well, having benefitted from the extreme market volatility
related volumes and demand for our services.
Duffys words are borne out by the Thomson Reuters 2008 league tables for
midmarket M&A. For deals based on value, KBW ranked No. 5 for U.S. announced
M&A deals valued up to $50 million; No. 11 for U.S. announced deals up to $100
million; No. 17 for U.S. target deals up to $200 million; and No. 17 for deals valued
up to $500 million.
Word on the Street

KBW was repeatedly honored for its research in 2008. David Konrad was named by
The Wall Street Journal as the top banking industry analyst in the United States,
according to its the Best on the Street survey. Konrad beat 102 other analysts for
the title. The newspaper also honored Jeffrey Schuman as the second-best analyst
in the life insurance category, and also recognized Dean Evans in the non-life
insurance category and Bose George in the real estate category.
In memoriam
Keefe, Bruyette & Woods was among the companies that donated $5 million to the
construction of the National September 11 Memorial and Museum at the Wold Trade
Center in New York City, which reached its $350 million fund-raising goal in April
2008. The firm also maintains its independent September 11 family fund to support
relatives of the 67 KBW employees who died on that day.
Getting Hired
Point of contact
To submit your resume for future job openings, the firms website encourages sending
an email to recruiting@kbw.com with your resume attached in MS Word or PDF
format.

155
KPMG CORPORATE FINANCE

120 Broadway, 23rd Floor
New York, NY 10271
Phone: (888) 957-5764
www.kpmgcorporatefinance.com
SPECIALTIES
Advisory Services & Financial Opinions
Global Infrastructure & Projects
Investment Banking
Private Equity
Special Situations
EMPLOYMENT CONTACT
See
www.kpmgcorporatefinance.com/careers
or e-mail your resume to
uscorpfinrecruit@kpmg.com.
Managing Director, Head of Investment
Banking: Cherie Smith Homa
Firm Type: Subsidiary of KPMG LLP
No. of Offices: 150
The Scoop
Not just audit
KPMG Corporate Finance is a subsidiary of KPMG LLP, one of the worlds largest
professional services firms, with over 136,500 employees working in 140 countries.
One of the Big Four auditors, KPMG is a structured as a Swiss Verein, with each
member firm acting as an independent legal entity. Its three lines of service audit,
advisory and tax brought in $22.7 billion in global revenue in 2008.
As you might expect, the KPMG Corporate Finance subsidiary is part of KPMGs
advisory division, which includes eight other business lines: accounting advisory;
internal audit, risk and compliance services; forensics; transaction services;
restructuring; IT advisory; business performance services; financial risk management
services; and restructuring. KPMG Corporate Finance comprises approximately
2,200 professionals in 62 countries worldwide and provides a full range of middlemarket services, including investment banking, private equity services, advisory and
financial opinions, global infrastructure and projects services, and special situations
(i.e., financial distress and bankruptcy management).
As of October 2007 KPMG Corporate Finance has included the realty advisory
practice of Long Island-based Keen Consultants; the business now operates as a
wholly owned subsidiary of KPMG Corporate Finance. One of Keens most notable
assignments in 2008 was assisting video rental giant Movie Gallery with the
disposition of several Movie Gallery and Hollywood Video store locations.
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KPMG Corporate Finance
Declaration of independence
A unique feature of KPMG Corporate Finances operations is that the firm is
completely independent of financing sources it does not underwrite, make loans to
or invest in any of its clients, nor is there an in-house research division. According to
the firm, Our independence helps insure that our interests are aligned with those of
our clients.
Speaking of clients, at KPMG Corporate Finance they fall into 10 categories:
insurance, business services, real estate, media and marketing services, energy and
natural resources, financial services, health care and pharmaceuticals, consumer
markets, industrial markets and technology and communications. The firms U.S.
offices are located in Manhattan, Los Angeles, Dallas, Chicago, Costa Mesa, Calif.,
Melville, N.Y., Austin, Baltimore and Atlanta.
Real estate expands

Real estate is shaping up to be a strong sector for KPMG Corporate Finance in the
near future. In November 2008 the firm hired Frank J. Diliberto, former president
and CEO of Inland Real Estate Auctions, as managing director of real estate services
and head of the real estate auction platform. Based in Chicago, Diliberto is busy
expanding KPMG Corporate Finances national real estate services team, including
transaction advisory and execution.
A 19-year veteran of the real estate advisory and auction worlds, Diliberto has been
involved in crafting strategies for major corporations like Intel, Allstate Insurance and
Harris Bank/Bank of Montreal.
Top o the charts

During the course of 2008 KPMG Corporate Finance advised on 390 mergers and
acquisitions, and it ranked No. 1 in Mergermarkets global middle -market rankings
with 265 deals worth a total of $73.5 billion. The firm beat out fellow Big Four
subsidiaries Deloitte Corporate Finance and PricewaterhouseCoopers Corporate
Finance to take the top spot, and KPMG completed more deals in the Asia-Pacific
region than its competitors.
A 2009 Financial Week review of the past year in middle-market M&A activity noted
that the Big Four, while primarily known for their audit prowess, had certain
advantages over pure investment banks: like a well-coordinated network of
professionals around the world. Were able to identify counterparties, be they
acquirers of businesses or capital sources, across the globe and not just in one
market or another, explained Stephen Gaines, the head of KPMGs corporate finance
division in the U.S. The larger KPMG network just gives us access to on-the-ground
intelligence and cultural sensitivities that competitors cant match.

157

Nice!
The kudos kept coming, as The M&A Advisor handed KPMG Corporate Finance its
2008 Energy Deal of the Year award for its role as advisor to Concept Mining in
conjunction with its sale to ArcelorMittal.
Other key assignments for the year included advising Cash Management Solutions on
its $36 million sale to River Associates Investments; helping Unilever Canada divest
assets to Margarine Golden Gate-Micha; working with the trustees of Food
Management Group LLC on the disposition of 27 Dunkin Donuts franchises in New
York; advising Vivitar Corporation on the sale of its brand and intellectual property to
Sakar International; and advising Frontline Direct on its $20 million sale to Adconion
Media Group.
KPMG Corporate Finance experts also provided a valuation opinion to Pacific
Crossing LLC in conjunction with its Chapter 11 filing; and offered fairness opinions
to the boards of Pacific Internet and Precision Dynamics Corporation.
Recoverys on the horizon
With all eyes on the global economic meltdown in early 2009, many wondered what
the new year had in store for M&A deals. Enter KPMG Corporate Finances annual
publication, the Global M&A Predictor, a forward-looking survey of 1,000 leading
companies that analyzes prospective price to earnings ratios and balance sheet
capacity.
Unsurprisingly, the January 2009 edition of the report forecast a very subdued year
for M&A activity, as Stephen Gaines, head of KPMG Corporate Finance U.S., put it.
The silver lining: according to KPMG, deal volume is nearly at the trough which
means its all up from here. While this M&A downturn is different from previous ones
in character, I think we can draw some parallels between the current situation in the
deals market and how we emerged from one of the last big deals recession in the
early 1990s, Gaines said. I am feeling very optimistic that we will see a similar
pattern emerge this year and next, and that by the close of 2010 the M&A downturn
will be behind us, with a sustained recovery in transactional activity.
158

Getting Hired
Fitting the ideal
The career section of the firms website (wwww.kpmgcorporatefinance.com/careers)

gives information on available opportunities within its U. S. offices. KPMG is always
looking for new analysts, associates and managing directors within its investment
banking division; if you are interested, send your resume to
uscorpfinrecruit@kpmg.com.

159
LADENBURG THALMANN & CO. INC.

4400 Biscayne Boulevard
12th Floor
Miami, FL 33137
Phone: (305) 572-4100
Fax: (305) 572-4199
www.pzk.com
Services
Individual Investors
Investment Banking
EMPLOYMENT CONTACT
www.pzk.com/careers.asp
SPECIALTIES
Corporate & Institutional
Independent Brokerage & Advisory
CEO: Richard J. Lampen

No. of Offices: 11
The Scoop
From both sides of the pond

Ladenburg Thalmann first entered the merchant banking scene in 1876, when U.S.
investment banker Ernst Thalmann and German banker Adolph Ladenburg joined
forces. Three years later, the firm hit the New York Stock Exchange, and became
known as a trusted banking liaison between the U.S. and Europe. (Even the Queen
of England relied on the firm, presenting its management with a sterling silver cigar
box after the firm served the British Secret Service in World War II, purchasing
Deutschmarks for the U.K. government.) Connections with royalty aside, the firm has
continually changed and developed over the course of more than a century. Today,
the firm is an investment banking and brokerage company that caters to investments
for clients in corporate and institutional sectors as well as individual investors. Its
divided into four departments: corporate and institutional, independent brokerage
and advisory services, individual investors and investment banking.
Traditional investment banking

Ladenburgs investment banking unit provides an array of traditional servicessuch
as capital-raising, special purpose acquisition company offerings, mergers and
acquisitions, fairness and solvency opinions and valuation services, restructuring and
financial advisory services. Within this unit, in 2008, Ladenburg worked on deals for
the Hard Rock Caf, Hollywood Media Corp. and Harvard Drug Group.
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Ladenburg Thalmann & Co. Inc.
Its an alternative
Ladenburg Thalmann Asset Management provides a number of services. In addition
to providing investment advice to corporate and individual clients, the business also
works on alternative investmentsLTAM gives alternative investment advice to the
firms high-net-worth clients and investors in private equity and hedge funds. Within
this sector, LTAM works in investor relations, risk management, due diligence, asset
allocation and negotiations for third parties.
You feeling lucky, Punk?

Boutique investment bank Punk Ziegel & Company, a firm that financially advises
corporations, was acquired by Ladenburg in May 2008 for an undisclosed amount.
Under the terms of the deal, Punk was merged into the Ladenburg subsidiary
Thalmann & Co. Punks specialty arenas are health care-related technology, software
and wireless services.
Punk Ziegel, in business since 1990, has established itself as a firm that stays one
step ahead of the trends. In July 2007, Punk analyst Richard Bove downgraded
Goldman Sachs, Bear Stearns, Lehman Brothers, Merrill Lynch and Morgan Stanley
shortly after Bears bad mortgages came to light. Bove was ahead of the curve in his
prediction, saying in the report entitled Who is Next? that he didnt see the issue
as a Bear Stearns problem, but a systemic one, adding that this could force a wide
variety of other holders of subprime mortgage securities and CDOs to meaningfully
revalue their holdings.
Though Boves report was a hugely popular one, some companies were not amused.
In July 2008, BankAtlantic filed a lawsuit against Bove and Ladenburg seeking
defamation and negligence-related damages from the report, which predicted that
BankAtlantic might be one of the next banks to fail. BankAtlantic denied it was in
trouble, calling Boves prediction nonsensical. In turn, Ladenburg called the
lawsuit a meritless one.
Stepping it up
In July 2008, the firm acquired broker-dealer and investment advisor Triad Advisors
in a transaction worth up to $37 million. The addition of Triad brought the number
of Ladenburg advisors up to 900 and the amount of client assets to $17 billion.
Despite the acquisition, Triad will continue to operate as a stand-alone business from
its headquarters in Georgia.
More deals could be on the horizon, as BusinessWeek reported in August 2008 that
Ladenburg is continuing to seek out additional acquisitions. Shortly following the
Triad acquisition, sources reported that Investacorp Inc., a Ladenburg subsidiary, was
reaching out to other broker-dealers in the weeks and months following the deal with
gross annual revenue between $60 million and $130 million. The acquisition of

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Ladenburg Thalmann & Co. Inc.
Investacorp in October 2007 was a feather in the cap of Ladenburg. The brokerdealer has about 500 representatives in the U.S. and $8.5 billion in client assets.
Members only
Ladenburg is a member of M&A International, an alliance of corporate advisors that
collectively concentrate on middle market deals. Ladenburg contributes its expertise
as a member and receives advice from internationally located firms in turn. (Clients,
meanwhile, benefit from conducting business with just one company.) Companies
belonging to the alliance complete an average of about 200 deals worth more than $7
billion a year.
Mixed bag
For the second quarter of 2008, Ladenburg reported $25.23 million in revenue, up
36.2 percent from the same period in 2007. The firm reported a net loss of $5.23
million for the quarter, however, compared with $17,000 in net income in the second
quarter of 2007. The firm brought in $15.91 million in revenue, thanks to its
acquisition of broker-dealer Investacorp, but its net loss was pushed down further by
a compensation expense of $1.50 million.
Getting Hired
Try your luck

While the firms careers site sections actual job openings appear to be few and far
between, the firm does keep a list of any positions it has available at any given time
on www.pzk.com/careers.asp. Potential candidates can submit their materials
through the online system.
162
LAZARD MIDDLE MARKET (GOLDSMITH AGIO HELMS)

225 South 6th Street
Suite 4600
46th Floor
Minneapolis, MN 55402
www.agio.com
Divestitures
Joint Ventures
Sales
EMPLOYMENT CONTACT
SPECIALTIES
www.agio.com/careers
Alliances
Buyouts
Corporate Finance
Chairman: Jack P. Helms

No. of Offices: 5
The Scoop
A new platform
Lazard Middle Market was formed after Lazard acquired Goldsmith Agio Helms in
2007 to serve as its middle market financial advisory platform. Founded more than
25 years ago, Goldsmith Agio Helms pioneered the delivery of premium investment
banking services to midsized companies, and became one of the largest and most
successful investment banks serving the middle market in the United States. Prior to
the acquisition by Lazard, the principals of the Goldsmith Agio Helms had
successfully completed more than 600 financial advisory assignments spanning
virtually every industry sector. Lazard Middle Market has approximately 100 bankers
who operate through offices in Minneapolis, New York, Chicago, Los Angeles and
Charlotte. Lazard, one of the world's biggest financial advisory and asset
management firms, operates from 39 cities across 22 countries in North America,
Europe, Asia, Australia and South America.
Key sectors and services

Beyond the global reach of the parent company, Lazard has built up a reputation
through the years focusing on a number of key sectors business services,
consumer, energy, food and agriculture, health care, media and communications,
plastics and chemicals, and technology. The firm also offers a full range of financial
restructuring services to assist companies in financial distress including precrisis
situations, out-of-court workouts and Chapter 11 reorganizations. It also focuses on
capital-raising to middle market companies through private placement of equity and
debt, ranging in size from $5 million to $500 million.

163

Lazard Middle Market (Goldsmith Agio Helms)
Expanding geographically
Lazard Middle Market boosted its financial advisory efforts in the U.S. by recently
opening up a Charlotte office. The firm is run by a number of top bankers from
around the country who joined from rivals such as Piper Jaffray, Bear Stearns and
Wachovia Securities. "We have enjoyed great success for our clients since the
formation of Lazard Middle Market last year," said Kenneth M. Jacobs, CEO of Lazard
North America. "By adding senior talent to our existing teams in M&A, restructuring
and private placement, and establishing a base in the southeastern region, we will be
able to continue to extend our reach in this vibrant market."
Getting Hired
Numerous opportunities
The Lazard Middle Market website has information on a number of opportunities for
candidates. Those interested can submit resumes online through its site for associate
positions, the firms two-year analyst program and summer internships, as well as
more experienced positions. Go to www.agio.com/careers.
164
LEERINK SWANN LLC

1 Federal Street, 37th Floor
Boston, MA 02110
Phone: (617) 248-1601; (800) 808-7525
Fax: (617) 918-4900
www.leerink.com
SPECIALTIES
Equity Research
Institutional Sales & Trading
Investment Banking
Private & Corporate Client Services
EMPLOYMENT CONTACT
leerink.com/careers.aspx
CEO: Jeffrey A. (Jeff) Leerink
No. of Offices: 3
The Scoop
Healthy business
Beantowns Leerink Swann is a specialist boutique that focuses exclusively on the

health care industry. The firm was founded by now-CEO Jeff Leerink in 1995; by
1999 it had landed a spot on Inc. magazines Americas 500 Fastest-Growing Private
Companies list. Today Leerink has offices in Boston, New York and San Francisco,
and its service lines include equity research, private and corporate client services,
institutional sales and trading, strategic advisory and investment banking. Leerinks
i-banking professionals offer services related to mergers and acquisitions, public
offerings, private placements and private investments in public equity (PIPE)
offerings.
Backing the firms health care expertise is its MEDACorp network, a brain trust of
more than 25,000 physicians, researchers and other health care experts in North
America, Europe and Asia. Leerink professionals work closely with MEDACorp
members who are paid consulting fees for their services to advise the firms
clients. The network is pitched as an opportunity for members to network with clients
senior executives and health care industry insiders who have the capability to support
clinical trials and other research efforts.
To crack down on conflicts of interest and to maintain its standards for consulting
Leerink regularly audits network members, and denies membership to employees
of publicly traded companies and government employees.

165

Leerink Swann LLC
A single stake
Leerink has been privately held since its inception, but in 2007 it sold a $35 million
minority stake to Los Angeles-based private equity firm Lovell Minnick and fellow ibanking boutique March Group. Representatives from both investing firms now sit
on Leerinks board of directors. CEO Jeff Leerink said at the time that the capital
would fund expansion efforts, though as of early 2009 the firm has yet to open any
additional offices.
Strategy shapes up
In October 2008 Michael Jenkins, formerly a partner with New York advisory firm
Trinsum, was appointed senior managing director and head of Leerink Swann
Strategic Advisors. At Trinsum (which was formed by the merger of management
consultancy Marakon and financial advisory firm Integrated Finance Limited),
Jenkins spent 15 years advising clients in the health care and financial services
sectors on issues like strategy development and execution, organizational
effectiveness, acquisition evaluation and integration. CEO Jeff Leerink said Jenkins
would be integral to plans for building out the strategic advisory practice; his new
career came just in time, as Trinsum went belly-up in January 2009.
Leerink Swann Strategic Advisors provides a range of advisory services, working in
close collaboration with the firms investment banking group; these services include
portfolio management and product search processes, like identifying licensing
opportunities; corporate strategy development; product and therapeutic area strategy
for clinical development, marketing and positioning; and M&A-driven growth and
transaction strategies.
Deals galore
A number of assignments kept Leerink Swanns teams busy in the second half of
2008. In September the firm served as exclusive financial advisor to Cellzome Inc.
on its deal to license kinase technology to pharma giant GlaxoSmithKline; that month
Leerink also advised VisiGen on its $75 million sale to Invitrogen Corp. In December
United Therapeutics turned to Leerink for advisory services in conjunction with its
$150 million licensing of Tadalafil (better known as Cialis) to Lilly. In the final weeks
of the year Leerink took a role as sole placement agent for Momenta Pharmaceuticals
$25 million registered direct offering, and served as sole agent for Helicos
BioSciences $19 million private investment in public equity (PIPE) offering.
Tops, again
In 2008, for the second year in a row, Leerink took the No. 1 spot in Institutional
Investors All-America Institutional Sales Team Healthcare Survey of chief investment
officers, portfolio managers, buy-side analysts, research directors and other
investment professionals. Leerinks sales team also came in No. 2 in the
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Leerink Swann LLC
biotechnology survey category, and the firms no stranger to Institutional Investor

kudos for the past seven years its been dubbed Best of the Boutiques in multiple
health care categories.
Morgan Stanleys loss

Theres a new executive in the investment banking group at Leerink: William Reiland
joined as managing director in January 2009. In this role he will be responsible for
overseeing originating, structuring, and marketing royalty monetizations; mezzanine
financings and private equity transactions. Reiland, a 15-year veteran of Morgan
Stanley, had most recently worked as managing director of Morgan Stanleys $3
billion internal private equity investment group. Over the course of his career hes
advised on approximately 70 health care financing transactions worth a collective $25
billion.
Reiland reports to David Ogens, senior managing director and head of the investment
banking division. Ogens joined in 2005 after a lengthy career at Goldman Sachs.
Offerings and advice

So whats in the pipeline for 2009? In February Leerink was retained by Princeton,
N.J., pharmaceutical development company Pharmasset Inc. to serve as sole
placement agent for a $455 million registered direct offering of 4.678 million shares.
Since July 2008 Leerink has been advising Seattles Northstar Neuroscience, a
medical device company that develops therapeutic treatments for neurological
injuries and diseases. That month Northstar received an unsolicited takeover bid
from San Diego-based Tang Capital; Leerink was called upon to advise on a defense,
and to help Northstar evaluate strategic alternatives. In early 2009 the alternative was
announced: Northstars board decided to dissolve the company and liquidate its
assets.
Getting Hired
Passionate about health care?
At www.leerink.com, applicants can search listings that span a number of divisions.
If you dont think the firm is currently listing your perfect job, Leerink still encourages
those who are passionate about the health care industry to contact them anyway at
human.resources@leerink.com.

167
LIGHTHOUSE CAPITAL ADVISORS, LLC

8080 Beckett Center Dr., Suite 213
West Chester, OH 45069
Phone: (513) 942-4142
Fax: (513) 942-4419
www.lhcap.com
EMPLOYMENT CONTACT
rkates@LHCap.com
Founder: Rick D. Kates
No. of Offices: 1
SPECIALTIES
Marketing
Purchasing
Sales
The Scoop
Working both angles
Founded and owned by investment banker and CPA Rick Kates, Lighthouse Capital
Advisors concentrates on counseling midsized business owners regarding the sale of
their firms in addition to assisting those interested in obtaining a middle market firm.
But why does Lighthouse focus on the middle market? Lighthouse says it believes
those companies have unique requirements that need to be met accordingly. The
firm emphasizes confidentiality and stresses maximizing the proceeds of the sale of
a business for its owner.
Lighting the way

Lighthouse caters to clients whove never engaged in the sale of a business, including
those who are selling off their sole business for the first time. Because the firm works
closely with these sorts of business ownersand because Lighthouse itself is smaller
than many of its larger investment bank counterpartsits also pretty choosy, only
taking on a certain amount of clients at a time.
In addition to working one-on-one with clients, Lighthouse also works on advising
companies on their sales and purchases. The firm has been involved in advising,
initiating and negotiating on a number of transactions, including serving as lead
investment banker for firms such as Blue Chip Engineered Products, Current
Electrical & Lighting Supply and J&B Systems Company, among others.
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Lighthouse Capital Advisors, LLC
Getting Hired
Not too formal
To be sure, Lighthouse is a fairly close-knit group and doesnt do much outward

recruiting. But if you think that you have a skill set the firm would find impressive,
you can try emailing your cover letter and resume to founder Rick Kates at
rkates@LHCap.com.

169
LINCOLN INTERNATIONAL
500 W. Madison Street, No. 3900
Chicago, IL 60661
Phone: (312) 580-8339
Fax: (312) 580-8317
www.lincolninternational.com
SPECIALTIES
EMPLOYMENT CONTACT
See career link at
www.lincolninternational.com
Managing Director: L. James Lawson
No. of Offices: 9
Fairness Opinions & Valuations

Private Placements
The Scoop
Lincolns origins
Established in 1996 by Jim Lawson and Rob Barr as Lincoln Partners, Lincoln
International took on its current moniker when it merged with strategy and
development firm Peters Associates in 2006. The firm has clients ranging from large
public businesses to private companies, and focuses its expertise on private
placements, M&A, valuations, corporate finance and restructurings. While Lincoln
lives up to its international name, with offices in Germany, France, Spain, the United
Kingdom, Austria and Japan, its headquarters are situated in the U.S.deep in the
heart of Chicago, to be exact.
Lawson and Barr still are hands-on in Lincolns day-to-day operations, serving as cochairman and president, respectively. Both men also act as managing directors for
the firm, and, between the two of them, have backgrounds in accounting,
mathematics, statistics and economics. But the duo doesnt claim to make financial
magic happen on their ownthey employ an investment banking team with
experience at major investment banks and advisory companies in the U.S., Europe
and Asia.
Representin
The firm has a steady stream of companies it represents in some big-name
transactions. In 2008 alone, the firm worked on deals ranging from the sale of a
portfolio company of Bank of America to a selloff of Anns House of Nuts. With its
positioning as a global firm, Lincoln is also consistently involved in deals all over the
world.
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Lincoln International
Getting Hired
Go to Lincoln
Under the career link at www.lincolninternational.com, candidates can peruse

internship openings as well as full-time listings grouped together by country. The firm
regularly recruits for analysts, associates and investment bankers at all levels.
Interested candidates can apply with directly online with their materials.

171
McCOLL PARTNERS LLC

100 N. Tryon Street, 54th Floor
Charlotte, NC 28202
Phone: (704) 333-0525
Fax: (704) 333-0118
www.mccollpartners.com
SPECIALTIES
EMPLOYMENT CONTACT
See the careers opportunities link at
www.mccollpartners.com
Chairman: Hugh L. McColl Jr.
No. of Offices: 3

Private Capital Raises
Strategic Advisory & Valuation
Assignments
The Scoop
An array of industries
Providing investment banking services to middle market businesses since 2001,

McColl Partners concentrates its expertise over several industries, including
aerospace and defense, building products and packaging, business services,
consumer products and retailing, diversified manufacturing, financial institutions,
health care, and technology and media. Founded by former Bank of America CEO
Hugh McColl in 2001, McColl Partners focuses on management and owners of
middle market businesses.
The firm also stays busy advising firms on a number of sales. In 2008, among its
deals, the firm advised defense training company OMEGA Training Group on its sale
to Cubic Corporation, Burke Industries on its sale to Mannington Mills, and Gator
Leasing on the sale of its assets to Ryder Truck Rental.
Its newest addition

In March 2008, McColl created a new private equity coverage group, which will focus
exclusively on advising and helping to carry out private equity deals. The group, led
by Jamie Lewin and Brian Davis, will also be based out of Charlotte. The move seems
to be a potentially profitable one for the firmsince its establishment in 2001, most
of McColls business has come out of private middle market companies.
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McColl Partners LLC
Airing his views

In October 2008, Hugh McColl published an editorial in The Charlotte Observer
newspaper publicly supporting the Democratic candidate, Barack Obama, for
president. The editorial was a first for McColl, who had never before supported a
political candidate on such a public level (and neither had the firm). McColls
concern for what he termed to be the economic disarray of the country and
apprehension in finding domestic alternative energy sources led him to his public
backing of Obama.
Getting Hired
Welcome, analysts and associates
Under the career opportunities link at www.mcccollpartners.com, McColl lists

opportunities under its associate and analyst programs. For its associate program,
McColl handpicks candidates from advanced degree programs (like those getting
MBAs) in addition to professionals who are in the workforce. Associates work on the
structuring and negotiation behind different transactions. Analysts come on with the
firm as part of a two-year programusually after completing an undergraduate
degreeand work with senior bankers to do analysis on transactions. Interested
candidates for either program should follow instructions to submit their materials to
the appropriate person listed on the website.

173
McGLADREY CAPITAL MARKETS

575 Anton Boulevard, 11th Floor
Costa Mesa, CA 92626
Phone: (714) 327-8800
Fax: (714) 327-8850
www.rsmequico.com
SPECIALTIES
Capital Raising
Divestitures
Fairness Opinions

Recapitalizations
Restructurings
EMPLOYMENT CONTACT
sryder@mcgladreycm.com
President: Hector J. Cuellar
Firm Type: Subsidiary of a Public
Company
No. of Offices: 6
The Scoop
By any other name
RSM EquiCo officially became McGladrey Capital Markets on September 29, 2008.
The investment banks name change was the culmination of a four-year
transformation period in which president Hector J. Cuellar worked to develop RSM
EquiCo into an internationally recognized force in the world of investment banking.
Cuellar said that the bank also recognized the need to develop industry
specialization, expand beyond our exclusive focus on sell-side mergers and
acquisitions, and that the changes have been successful beyond expectations. The
evolution of our business has been so impactful, we felt a name change was in order,
Cuellar concluded.
The name change also represents a closer relationship with the bank's parent
company RSM McGladrey, Inc., which is a member firm of RSM International and a
wholly owned indirect subsidiary of tax giant H&R Block. McGladrey Capital Markets
is headquartered in Costa Mesa, Calif., with additional offices in Chicago, Dallas, New
York, Boston and London.
Sectors and deals

McGladrey Capital Markets caters to privately-owned mid-market businesses and
mid-cap public companies, offering services like M&A and divestiture advisory,
capital raising, fairness opinions, recapitalizations and restructurings. The firm is a
registered broker-dealer and provides global investment banking services with an
emphasis on the North American middle market.
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McGladrey Capital Markets
Business at McGladrey Capital Markets covers a number of industries, including

aerospace and defense, basic industries, business services, chemical, energy
services, engineering, construction and building materials, food and beverage, global
financial services, government services, health care, recreation and leisure, rubber
and plastics, technology and media, entertainment and gaming.
Aviation actions
McGladrey Capital Markets stepped into government affairs to address problems in
the aerospace and airline industry. Hector Cuellar, president of McGladrey, spoke
publicly about the problems in the airline industry for the first time at the Farnborough
International Airshow in England in July 2008. Cuellar called U.S. officials, saying
Government action is long overdue. Congress must act promptly to prevent further
industry deterioration and the corresponding deleterious effects on the nation.
Cuellar has good reason to be interested in the affairs of the airline industry. The
sector provides significant income for the company, and Cuellar himself has been
involved in several aviation reorganizations. He also has been an expert witness in
the bankruptcy proceedings of marquis names such as MarkAir and United Airlines.
He suggested a government intervention which would re-write regulation laws
regarding pricing structure, labor policies and bankruptcy laws in order to save the
failing industry.
Restructuring business
In May 2008, McGladrey expanded its business by adding a restructuring division to
its investment banking team. The bank seeks to take advantage of a struggling
economy by offering expert advice to middle-market firms that have underperforming
assets or are in financial straits. McGladreys new team promised to work with both
debtors and creditors to develop tailored solutions suitable for virtually any financial
or operating situation. The new practice will be managed by Jay Sherwood.
Sherwood said that restructuring is a perfect offering for the company at this time as
capital market shifts and economic turbulence can challenge even the best run
companies.
Keeping on chart for success

McGladrey continued its ascent up the league tables in 2008, despite market
circumstances that caused a significant decline overall in worldwide M&A advisory for
the year. The firm was ranked 14th in the United States for overall M&A deal volume
on FactSet Mergerstats charts and finished second for deals under $250 million.
Consumer products, chemicals, and plastics and advanced materials all performed
especially well, ranking first in each of their categories for deals under $250 million.
Overall, the firm completed 45 deals worth a total of $1.51 billion.

175

The firm also snagged itself a spot on the prestigious Thomson Financial league
tables, coming in 20th in the world for M&A advisory deals of up to $100 million. The
firm completed 28 deals throughout the year in this category, with a total value of
$18.9 million.
Latino leadership
Hector Cuellar earned accolades from Latino Leaders magazine in 2008 when he was
named one of the Top 25 Latinos in Finance. The list tracks the accomplishments
of Latinos the business world and includes top executives at businesses such as Bank
of America and CalPERS. Cuellars leadership has been impressive over his four
years as president of McGladrey Capital Markets. During his tenure, the company
has completed more than 150 M&A transactions, tripled its average deal size, and
nearly doubled its number of cross-border transactions.
Boost in private equity

Nearly 46 percent of McGladreys deals involve private equity firms. Thats why the
company has a devoted private equity focus team, which deals exclusively with the
firms PE clients. The attention to the industry paid off in 2008. In its year-end report,
McGladrey stated that it had increased its private equity group clients fourfold.
Key negotiations
The deals that kept the firm going in 2008 came from a wide variety of sectors.
McGladrey kicked off 2009 with a deal in the aerospace and aviation sectors when it
led negotiations and acted as financial advisor to Helicomb, a military aircraft
manufacturer that was acquired by Synchronous Aerospace. In December 2008, the
firm cooked up a deal between its client Tom Cat Bakery, a New York City bread
maker that was acquired by Ancor Capital Partners and Merit Capital Partners.
McGladrey proved its international clout in late 2008 when it acted as exclusive
financial advisor to the Japanese company Saiden Chemical Industry, which was
acquired by the Canadian firm Halltech Inc.
Earlier in the year, McGladrey advised Numet Engineering on its sale to ODIM Inc., a
transaction valued at approximately $21 million. In June, the company led the
negotiations and acted as advisor to DesignPac on its sale to 1-800-FLOWERS.COM
for $38.25 million. Also within 2008, McGladrey initiated a $150 million purchase of
oil pump manufacturer Concentric to Haldex AB. In addition to leading the
negotiations, the firm also acted as Haldexs advisor.
176

Getting Hired
Careers at McGladrey
McGladrey is particularly interested in people who combine noteworthy skills

and a hunger for excellence with a genuine enjoyment of their work.
Qualified candidates should submit a cover letter and resume to Scott Ryder
at sryder@mcgladreycm.com.

177
MORGAN JOSEPH & CO.

600 Fifth Avenue
19th Floor
New York, NY 10020
Phone: (212) 218-3700
Fax: (212) 218-3719
www.morganjoseph.com
International Practice
Investment Banking
SPAC Underwriting & Advisory Services
EMPLOYMENT CONTACT
www.morganjoseph.com/firm_careers.php
SPECIALTIES
Advisory Services
Capital Markets
Industries
CEO: John F. Sorte

Chairman: John A. Morgan
No. of Offices: 11
The Scoop
The other Morgan
Morgan Joseph zeroes in on offering financial advisory and capital raising services for
its clients domestically and internationally. Unlike some of its bigger counterparts, the
firm has actually continued to grow, adding new divisions even into 2008a pretty
troubled year for most of the financial industry, still reeling from the collapse of credit
and mortgage markets.
Its investment banking unit, which employs about 85 investment bankers, uses its
equity sales and trading divisions to help its client trade a variety of securities. The
firms advisory services group gives transaction advice to corporate clients and
institutional investorsits subdivisions include M&A, restructuring and advisory for
financial and special purpose acquisition companies (SPACs).
Morgan Josephs capital markets group provides services to those who issue debt,
equity and convertible securities. Capital markets subdivisionswhich include
equity capital markets, high-yield capital markets, private placements and SPAC
underwritingare involved in a variety of different transactions. Within its equity
capital markets unit, the firm manages initial public offerings, while the high-yield
capital markets unit takes care of managing secured and subordinated notes. The
private placement subdivision, meanwhile, takes care of placing preferred stock, debt
and warrants. Finally, Morgan Josephs SPAC underwriting subdivision is somewhat
of its crown jewelit had more than $2.3 billion in 20 transactions from underwriting
SPACs (overall, the industry has raised $14.8 billion via SPACs).
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Morgan Joseph & Co.
Big deals
The firm stays busy advising on a number of transactions. It advised Kohlberg &
Company on its on a $270 million acquisition of PPG Industries auto glass and
service unit in September 2008 and Angelica Corporation on its $300 million sale to
Lehman Brothers Merchant Banking in August 2008. It also recently provided a
fairness opinion to Icahn Enterprises on its $863 million purchase of the majority of
Federal-Mogul Corporation.
Structure and restructure

Morgan Joseph formed several new units in 2008, first launching its analytics and
trading group in June 2008. At the outset, the firm plans to trade structured products
like residential mortgage-backed securities (RMBS), commercial mortgage backed
securities (CMBS), structured credit securities (CLOS) and asset backed securities
(ABS). In September 2008, Morgan Joseph announced that it would be adding a
division focused on restructuring transactions to its corporate finance department.
The unit, which gives advice to distressed firms, is headed up by James Decker and
comprises seven bankers. Its dually headquartered in New York City and Atlanta.
Moving up
Morgan Joseph also stayed busy with a number of executive appointments in 2008.
In August 2008, Morgan Joseph appointed Z. James Chen to senior vice president in
equity research. Chen came to Morgan Joseph from BB&T Capital Markets and has
more than eight years of international industry experience, including five years on
Wall Street. In September 2008, the firm also appointed Michael Ice and Peeyush
Varshney to its new structured products group as managing director and senior vice
president, respectively.
Getting Hired
Climb that ladder
Under the careers link at www.morganjoseph.com, Morgan Joseph doesnt list any
specific open positions, but job seekers can find the right contacts to whom they can
send their resumes. Candidates interested in investment banking opportunities
should send their resumes to recruiting@morganjoseph.com, and any other career
inquiries can be passed on to careers@morganjoseph.com. The firm does note,
however, that it receives a high volume of resumes and will only contact those
applicants who are selected for interviews.

179
MOSAIC CAPITAL LLC

2049 Century Park East, Suite 350
Los Angeles, CA 90067
Phone: (310) 432-6777
Fax: (310) 432-6779
www.mosaiccapital.com
SPECIALTIES
EMPLOYMENT CONTACT
info@mosaiccapital.com
Chairman & Managing Director:
Gordon Gregory
No. of Offices: 1

Financing
Valuation Services
The Scoop
Two for the price of one
Mosaic Capital LLC, which advises middle market companies (in Mosaics case,
companies having anywhere from $10 million to $500 million in annual sales) is split
into two units: Mosaic Capital Securities LLC and Mosaic Capital, Inc. The former
assists companies with privately placing debt and equity securities, and the latter
works on the firms real estate transactions. In total, the firm has worked on more
than $3 billion in transactions.
Its acceptance into International Network of Merger and Acquisition Partners (IMAP)
in 2003 helped enlarge the firms international footprint to include 20 countries.
Membership in the group gives Mosaic access to buyers who are potential merger
candidates. To this day, Mosaic works to expand its knowledge of different industries
around the world through the group, which is a truly global onein 2007, IMAP was
ranked No. 4 in worldwide middle market deals, working 254 deals worth a total of
$9.8 billion, according to Thomson Reuters.
What they offer

Under Mosaics mergers and acquisitions department, the firm works to cultivate
ideas for both sides of the coincompanies that wish to grow and those who are
looking to sell off their business. To this end, Mosaic finds targets and works with
businesses throughout the duration of the transaction. Specifically, Mosaics mergers
and acquisitions group works on sell-side representation, partner buyouts,
succession planning and corporate partnering.
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Mosaic Capital LLC
The firms valuation services group appraises businesses in addition to valuing assets
(such as for estate planning purposes). Through the department, Mosaic also offers
fairness opinions and assistance in litigation-related issues.
Mosaics financial advisory services division is perhaps the firms most expansive unit.
It helps implement business strategy, negotiates sales, evaluates profitability and
assists businesses in finding financing sources if necessary. Under this unit, Mosaic
also assists clients in exit planning and financial restructuring.
Finally, the firms financing group helps with private placements of equity, mezzanine
and debt capital to fund deals and development. Under this unit, real estate
financing is also supplied for companies purchasing and overall expansion.
Variety is the spice of advising

The firm is continually involved with advising transactions within a variety of sectors.
Mosaic touts its past deals in areas such as media and entertainment, technology,
manufacturing, distribution and retail, business and consumer services, medical
technology and health care. Though it doesnt typically release figures of deals on
which it has worked, the firm has advised on transactions for businesses ranging from
theme parks and movie studios to manufacturers of fine jewelryand even poultry
companies.
Getting Hired
Point of contact
Mosaic doesnt offer up job listings or information on recruiting on its website, so if
youre interested in working for the firm, your best bet is probably to email them
directly with questions regarding employment (or with a resume, if youre feeling
bold). Send all inquiries to info@mosaiccapital.com.

181
NEWBURY, PIRET & COMPANY, INC.

200 State Street
12th Floor
Boston, MA 02109
Phone: (617) 367-7300
Fax: (617) 367-7301
www.newburypiret.com
SPECIALTIES
Public & Private Financings
EMPLOYMENT CONTACT
www.newburypiret.com/about/careers.html
President and CEO: Marguerite A. Piret
No. of Offices: 1
Financial Advisory
The Scoop
Newburys not new to the scene
Newbury, Piret & Company is a Boston-based firm that prides itself on being an
advisor for middle market companies throughout New England. Since 1981, the firm
has offered M&A, recapitalization, divestiture and financing advice for businesses in
industries such as health care, manufacturing and technology. Newbury serves
corporate executives, family business owners and private equity investors.
The companys functions are divided into three sections: mergers and acquisitions,
public and private financings, and financial advisory. The firms mergers and
acquisitions department gives firms and investors access to a number of services,
including acquisition financing, buy-side advisory, sell-side advisory and corporate
divestitures, buyouts and acquisition searches.
Newburys public and private financing department focuses on coordinating debt and
equity financing with firms, private equity funds, banks, lenders and even federal
programs. The groups subdivisions include arranging common and preferred equity,
majority and minority investments, recapitalizations, mezzanine and subordinated
debt, funding of management-led buyouts, senior debt, PIPES and venture capital.
Finally, under the firms financial advisory department, Newbury provides advice
regarding company valuations. This units services include transaction support, tax
and estate, regulatory, litigation support, strategy support and intangible asset
analyses.
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Newbury, Piret & Company, Inc.
Master of M&As
Outsiders seem to agree that the firm is near the top of its class when it comes to
M&As. As of late 2007, the firm has been nominated as a top advisor finalist eight
years in a row by M&A Advisor (the firm was ranked No.1 in 2004). The firm has
worked on deals for numerous institutions, including Boston University, Odyssey
Optical Systems, Federal Distillers Inc., Semi-Alloys, Inc. and Advanced Instruments,
Inc.
Getting Hired
Keep checking
If youre interested in a career at Newbury, surf on over to the careers link at

www.newburypiret.com, where potential applicants are encouraged to send the firm
a resume and cover letter. (Interested candidates are also advised to check the site
for new opportunities.)
You can send in your materials to
recruiting@newburypiret.com or call (617) 367-7300 with any questions.

183
P&M CORPORATE FINANCE, LLC

27400 Northwestern Highway
Southfield, MI 48034
Phone: (248) 223-3300
Fax: (248) 223-0292
www.pmcf.com
SPECIALTIES
EMPLOYMENT CONTACT
www.pmcf.com/careers
President and Managing Director:
Philip C. Gilbert
No. of Offices: 3
Acquisition Advisory
Affiliated Services
Sale Advisory
Strategic Assessments
The Scoop
Under parental guidance
P&M Corporate Finance the investment banking subsidiary of financial firm Plante &
Moran. Since its creation in 1995, the firm has completed more than 300 merger
and acquisition and financial advisory transactions.
While PMCF concentrates on middle market businesses, it also hones in to focus on

certain industries. Specifically, the firm focuses on building products, business
services, industrials, life sciences, and plastics and packaging. To those industries,
the firm offers services that can be broken down into five groups: acquisition advisory,
sale advisory, capital-raising, strategic investments and affiliated services.
The benefits of boutiques

Under the acquisition advisory unit, the firm helps clients find possible target firms,
connects with those targets and assists in creating and negotiating a deal to benefit
both parties. The sale advisory side of PMCF helps act as a liaison for buyers and
sellers. To this end, the firm has helped clients looking for liquidity, firms wanting to
divest their non-core holdings and private equity groups looking to unload portfolio
investments.
Meanwhile, PMCFs capital raising group is involved in institutional private
placements, leveraged finance, debt issuances and private equity market access.
The group also provides services to finance the growth of corporations, fund
acquisitions, finalize management buyouts and refinance lending terms or debt.
184

P&M Corporate Finance, LLC
Within the companys strategic assessment services unit, the firm uses a formal
probePMCFs own Value Optimization Assessmentin order to help companies
figure out their own financial strategy. Through the assessment, companies get to
get a valuation and create a long-term plan that takes into account fluctuations in the
market.
PMCFs affiliated services group is perhaps the biggest grab bag of the bunch,
working on everything from businesses transition plans and due diligence issues to
tax services and restructuring. Additionally, this unit works on global business
initiatives in 90 countries (under the name Plante & Moran).
New onboard
In March 2008, PMCF hired Scott George as a managing director. In this role, George
will head up the firms Illinois operations and be based out of Chicago. George has
worked in investment banking since 1979 for an assortment of banks, including
Morgan Joseph, Morgan Stanley, Ernst & Young and Salomon Brothers.
Getting Hired
Jerks, take a hike

Under www.pmcf.com/Careers, the firm actually promotes itself to college grads as
having a jerk-free environmentsurely a pleasant credo for those worried about
being just an errand-runner. Those interested in pursuing a career with the firm can
browse job descriptions on the site (along with internships). More experienced
candidates have their own section on the firm as well, and can also read extensively
about the firms culture on the site. Most important, applicants can also search job
listings in every category (or if nothing suits your fancy, you can also submit your
resume for future consideration).

185
PENN CAPITAL GROUP LLC

8 Sturgis Lane
Lititz, PA 17543
Phone: (717) 626-1127
Fax: (717) 625-4888
www.penncap.com
SPECIALTIES
EMPLOYMENT CONTACT
hollinger@penncap.com
Managing Partner: R. Dennis Hollinger
No. of Offices: 1
Divestitures
The Scoop
Tapered focus
Investment bankers Penn Capital Group specializes in middle market firms with
values ranging from $1 million to $15 million. Based in Pennsylvania and focusing
mostly on serving Mid-Atlantic states, the firm also works on a select number of
national engagements. In existence since the mid-1970s, Penns staff is made up of
workers from varied backgrounds, including former CEOs and CFOs.
When finding a purchaser for a business wanting to sell itself off, Penn goes through
several steps. In performing a valuation for a business, Penn determines a price
range for the company based on factors such as history and past performance. Penn
then finds potential buyers through its referral network, makes sure the prospective
buyers qualify financially and, once an agreed upon match is made with the seller,
closes the deal.
Mums the word

Many firms dont release the amounts for deals on which theyre advising, but Penn
goes one step furtherit doesnt list the names of the companies it's advising, either.
Nevertheless, the firm does mention the deals its involved with on the site, albeit in
a rather enigmatic way: 62-year-old industrial power washing company and a
business specializing in custom interior design particularly for supermarkets,
convenience stores and other food service operations.
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Penn Capital Group LLC
Getting Hired
Get creative
Landing a gig Penn Capital could be a tall order. The firm doesnt have a career
section on its website, and it doesnt list an addressphysical or emailto which
applicants can send in their materials. Candidates best bet might be to email their
materials (or plead their case) to Dennis Hollinger, who lists his email address on the
firm's website as hollinger@penncap.com.

187
PIPER JAFFRAY COMPANIES

800 Nicollet Mall
Suite 800
Minneapolis, MN 55402-7020
Phone: (612) 303-6000
Fax: (612) 303-8199
www.piperjaffray.com
SPECIALTIES
EMPLOYMENT CONTACT
See career opportunities under our
company section of
www.piperjaffray.com
Chairman and CEO: Andrew S. Duff
No. of Offices: 31
Asset Management
Institutional Investing and Research
Investment Banking
The Scoop
Piper plus Jaffray (minus Hopwood)
In 1913 H.C. Piper Sr. and C.P. Jaffray opened a commercial paper brokerage in
Minneapolis, where grain elevators and milling businesses had created a serious
demand for promissory notes. Four years later, Piper and Jaffray merged with local
rival George Lane, who had established his brokerage firm in 1895. In 1929 a nearby
investment firm, Hopwood & Company, was decimated by the stock market crash
so Piper Jaffray was able to acquire it on the cheap.
As Piper Jaffray Hopwood the firm set its sights beyond Minneapolis, picking up a
seat on the New York Stock Exchange and opening offices across the country. Its
shares debuted on the NASDAQ exchange under the symbol PIPR in 1986; in 1992
the firm name was trimmed to Piper Jaffray Inc. A $730 million acquisition by U.S.
Bancorp in 1997 marked the end of Piper Jaffrays independence, but the tie-up was
short-lived: in 2003 Piper Jaffray was spun off, becoming an independent public
company (PJC on the New York Stock Exchange). A final restructuring came in 2006
when Piper Jaffray sold its private client business to UBS Financial Services for $510
million. Today Piper Jaffray & Co.the operating subsidiary of holding company
Piper Jaffray Companiesfocuses on investment banking, institutional investing and
research and asset management.
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Piper Jaffray Companies
Sweet home Minneapolis

Still headquartered in its historic home of Minneapolis, Piper Jaffray serves middlemarket corporations, private equity firms, public companies, nonprofits and
institutional investors. With nearly 1,200 employees in 31 offices worldwide, it
provides advisory services, equity and debt capital markets products, public finance
services, institutional equity and fixed income sales and trading, research and highyield and structured products.
Piper Jaffray specializes in over a dozen industry sectors, including education; media,
entertainment and telecommunications; technology; aircraft finance; clean
technology; financial institutions; state and local governments; real estate, housing
and senior living; hospitality; consumer; business services; cultural and social
services; health care; and industrial growth. Its proprietary research covers more
than 400 companies; at the 2008 FT/StarMine Global Analyst Awards, senior
research analysts from Piper Jaffray received a whopping nine awards for their stock
picking prowess.
New faces at the table

Senior management got a shake-up in May 2008, as chief financial officer and vice
chairman Thomas Schnettler was named president and chief operating officer.
Schnettler, a 22-year veteran of the firm, was replaced in the CFO spot by Debbra
Schoneman. She had previously served as treasurer and managing director.
As COO, Schnettler will oversee growth in the core investment banking and
institutional securities business; this will allow CEO Andrew Duff to focus on the firms
asset management business, corporate development and other key strategy.
Meanwhile, the heads of Piper Jaffrays overseas operations received new

responsibilities. David Wilson, CEO of London-based Piper Jaffray Ltd., and Alex Ko,
CEO of Piper Jaffray Asia, were tapped to join the firms management committee.
East Coast grows

In September 2008 Piper Jaffray built up its public finance banking operations, hiring
former Wachovia director Mark Piscatelli as a senior public finance banker. A UConn
grad who specializes in municipal financings, Piscatelli is based in one of Pipers
newest offices, in Hartford, Conn. From there he will work with Pipers existing public
finance teams in Boston to develop a wide-ranging business in Connecticut and
throughout New England.

189

Good advice
Even though the firm struggled through the second half of 2008, its advisory teams
managed to stay afloat. Piper Jaffray advised electronics giant Sharp Corporation on
its $99 million sale to United Drug in July 2008; over the summer the firm also served
as exclusive financial advisor to Lone Star Funds in its acquisition of the Home
Lending portfolio and other servicing operations of CIT Group Inc. That deal involved
$1.5 billion in cash and the assumption of $4.4 billion in debt.
In fall 2008, Piper advised Ohio-based DNA Diagnostics Center, one of the worlds
largest DNA testing laboratories, on its sale to MTS Health Investors LLC, a health
care private equity firm.
Carpe diem
A newly-opened office in Marina Del Ray, Calif., became home to an expanded fixed
income group in September 2008. Piper added five sales and trading professionals
to form a structured mortgage products group, with a focus on asset-backed
securities and mortgage markets. The same asset-backed and mortgage-backed
securities that contributed to the global credit crisis? Absolutely. There are great
opportunities in the distressed market that a highly skilled team can leverage,
explained fixed income head Ben May. And this is a market we will now serve with
an industry-leading and experienced team.
The new Marina Del Ray team operates under the supervision of managing director
Cliff Corrall, a former executive vice president at Countrywide Securities.
Rising in the rankings

In November 2008 Institutional Investor magazines annual ranking of the countrys
best equity sales teams placed Piper Jaffray at No. 3, a five-spot leap from its 2007
rank at No. 8. The rankings were determined by surveys of analysts, portfolio
managers, research directors, CIOs and other investment professionals at over 500
firms; a total of 28 finalists were ranked based on their small- and mid-cap equity
sales teams. Pipers No. 3 spot brought it right behind runner-up William Blair & Co.
and overall winner Robert W. Baird.
And according to the 2008 Thomson Reuters banking league tables, Piper ranked
No. 2 in mid-market advisory for deals valued up to $50 million (based on deal value),
working on 17 transactions worth $287 million. For deals valued up to $100 million
the firm ranked No. 3, after Goldman Sachs and Houlihan Lokey Howard & Zukin.
On larger transactions those valued at up to $200 million and up to $500 million
Piper came in at No. 14 and No. 20, respectively.
190

Building up restructuring
An addition to Pipers New York City office expanded the firms financial restructuring
team. Victor Caruso, who has provided financial restructuring advisory services for
over 25 years, left Morgan Joseph & Company to join Piper as a managing director.
Previously hed been a partner at Gordian Group, a managing director at Bear Stearns
and a co-founder of Lehman Brothers restructuring division.
Murray Huneke, co-head of investment banking, said Carusos expertise Will allow
us to expand our differentiated and integrated advisory strategy, which combines our
strong advisory, restructuring and capital markets platforms to best serve our clients.
Getting Hired
Look down the road
In the careers secton of www.piperjaffray.com, candidates can view current
opportunities, apply online and build a profile to be considered for future openings.
Job postings are sorted by and include a brief list of essential functions and job
requirements.
The firm recruits from approximately 20 undergraduate institutions and 10

business schools. But you can also check out online postings. The career
opportunities page has links for three different job functions: investment bankers,
financial advisors and research analysts.

191
PRAIRIE CAPITAL ADVISORS

Oakbrook Terrace Tower
One Tower Lane, Suite 3010
Oakbrook Terrace, IL 60181
Phone: (630) 443-9933
Fax: (630) 443-9977
www.prairiecap.com
Financial Opinions
Internal SalesOwnership Transition
Valuation
EMPLOYMENT CONTACT
info@prairiecap.com
SPECIALTIES
Executive Retention
External Sales
Managing Directors: Kenneth E.

Serwinski & Robert J. Gross
The Scoop
A passion for the middle market
Prairie Capital Advisors has been a big player on the middle market scene since
1996, when the firm was created by Kenneth E. Serwinski and Robert J. Gross, two
former investment banking advisors for Merrill Lynch. Looking to establish a
presence that focused exclusively on middle market banks, the pair left Merrill to
strike out and establish Prairie Capital Advisors in Oakbrook Terrace, Illinois.
Within the middle market, the firm works with a range of industries, including
architecture, service, manufacturing and construction. The firm defines middle
market firms as any company with a revenue between $2 million and $600 million.
What they do
The firm contains six departments: valuation, ownership transition, internal sales,
external sales, executive retentions and financial opinions. Within its valuation
department, Prairie Capital Advisors offers business valuations for estate planning,
stock ownership, succession alternatives, buy-sell agreements, M&As and other
purposes. Its ownership transition department, meanwhile, concentrates on how
companies can pass their business on to family or sell it to another firm; the unit also
helps firms come up with alternative plans, if necessary.
Its internal sales unit comprises three subdivisions: employee stock ownership plans
(ESOPs), management buyouts and recapitalization. With ESOPs, Prairie provides
debt advising and independent financial advisory services. Management buyouts
help business owners who want to sell off a certain amount of the company. Finally,
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Prairie Capital Advisors
its recapitalization unit helps find new sources of capital in events such as transitions
or buyouts.
Meanwhile, the external sales department focuses on company sales that involve
third parties, while the executive retention unit helps companies use equity incentives
to help keep executives onboard.
The financial opinions department is perhaps Prairies most extensive unit, supplying
clients with advice on M&As, spinoffs, buybacks and every shade of financial advice
in between. The firm also divides its advice into different opinions: fairness, solvency
and capital adequacy.
Getting Hired
Sell yourself
The firm doesnt list any recruiting information on its web site, so if youre interested
in the possibility of working for Prairie, first cross your fingers. Though there are no
directives from the company on how to prove youre the best candidate for the job,
you can still try sending in your materials. Shoot off a cover letter and your resume
to info@prairiecap.com.

193
PROVIDENT HEALTHCARE PARTNERS

183 State Street
Boston, Massachusetts 02109
Phone: (877) 742-9800
Fax: (877) 742-9810
www.providenthp.com
SPECIALTIES
EMPLOYMENT CONTACT
provident-capital.com/careers.php
Chairman & Co-Founder: Robert P.
Khederian
No. of Offices: 1
Capital Raising
Financial Advisory
The Scoop
The two Roberts
Provident Healthcare Partners was founded by Robert Ciardi and Robert Khederian
and specializes in investing in the health care industry. Based in Boston, the firm
focuses on serving public and private middle market firms, and is divided into three
units: capital-raising, financial advisory, and mergers and acquisitions.
The company is a division of Provident Corporate Finance LLC (along with Provident
Capital Partners, a boutique investment firm). Within the health care industry, the
firm works in a variety of areas, including medical devices, laboratories, disease
management, patient monitoringeven animal health. While Provident focuses
mostly on investing in the health care industry, the firm also provides generalized
investment banking services, such as venture capital, private equity, research
coverage and financing.
Breaking it down
Under the mergers and acquisitions unit, Provident offers more than the obvious
M&A song and dance. The firm also offers divestitures, joint ventures, leveraged
buyouts, privatizations and spinoffs. Providents capital raising department offers a
variety of services, including private placements of debt and equity, venture capital,
trust preferred securities offering, shareholder rights offering, public offering advisory,
mutual to stock conversions and recapitalizations. Finally, the financial advisory
division offers fairness opinions, valuations, strategic assessments, corporate
restructurings, due diligence and value consulting.
194

Provident Healthcare Partners
Doling out advice

The firm keeps busy advising and negotiating on a number of transactions. In June
2008, Provident advised Iowa Hospice on its merger with Voyager HospiceCare, a
portfolio company of Apax Partners (terms of the deal were not disclosed).
In July 2008, the firm advised pharmaceutical services company Advanced Care
Scripts on its sale to Omnicare, a firm that provides pharmaceutical care for the
elderly. In addition to its role as advisor, Provident also initiated and structured the
deal. While terms of the deal were not disclosed, Advanced Care Scripts revenue
runs more than $212 million annually, and Omnicare expects the deal to be positive
for its balance sheet in 2008.
Getting Hired
Give em what they ask for
The firm lists descriptions of open positions at provident-capital.com/careers.php,
along with detailed instructions on how to apply (candidates must submit a cover
letter, resume, writing sample and letters of reference to be considered). If you think
you have what it takes, submit your application to hr@providenthp.com.
Wannabe interns can also potentially get in on the action at Provident Healthcare
Partners. The intern program is designed for undergraduates who have completed
at least their second year of college. Those interested in applying can send on a
cover letter and resume to intern@providenthp.com.

195
ROBERTSON & FOLEY

6201 Fairview Road, Suite 200
Charlotte, NC 28210
Phone: (704) 523-7888
Fax: (800) 898-9064
www.robertsonfoley.com
EMPLOYMENT CONTACT
director@robertsonfoley.com
President: Robert Slee
No. of Offices: 1
SPECIALTIES
Business Transfers
Business Valuations
Capital Raises
Management Buyouts
The Scoop
Get onboard
The folks serving middle market companies over at Robertson & Foley call themselves
"financial engineers" that work with clients through the different steps of their
transactions up to completion. The firms clients are typically privately held, and have
annual sales of between $10 and $200 million.
Robertson & Foley is the Carolinas member of the International Network of M&A
Partners, which has 60 member companies around the world, giving R&F
international access for potential clients.
Menu of services
The firm divides its work into four departments: business transfers, business
valuations, capital raises and management buyouts. Within its business transfers
department, R&F offers seven transfer channels, or methods of transferring their
business, that owners can select. Those channels are employees, charitable trusts,
family, co-owners, outside-retire (where an owner can pass his business on to an
outsider and then retire), outside-continue and going public.
The companys business valuation unit can be used by owners who wish to determine
their business market value, economic value, fair market value, fair value or collateral
value for secured lending, legal and tax purposes. Meanwhile, Robertsons capital
raises department helps creates capital for companies (say that 10 times fast) for a
range of scenarios and situationssecured lending, mezzanine capital, private equity
and other private capital types.
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Robertson & Foley
The firms management buyout department manages both leveraged and equity
sponsored buyouts for its clients. For leveraged buyout deals, R&F uses the equity
and debt from the management of a firm to pay for the buyout. In an equity
sponsored buyouta transaction that ultimately gives less ownership to managers
more conservative forms of obtaining capital are typically used.
Getting Hired
Make an appeal
If youre interested in becoming part of the team at Robertson & Foley as a full-time
worker (or even an intern), dont expect to go peruse a section of job listings on the
site; there arent any. Instead, you can try pleading your employment case by
sending your resume (and, of course, a cover letter) to director@robertsonfoley.com.

197
SHORELINE PARTNERS LLC

4275 Executive Square, Suite 1000
La Jolla, CA 92037
Phone: (858) 587-9800
Fax: (858) 587-9820
www.shoreline.com
EMPLOYMENT CONTACT
www.shoreline.com/contact-shorelinepartners.aspx
Managing Partner: Phillip L. Currie
No. of Offices: 2
SPECIALTIES
Acquisition
Building Exit Value
Sale & Divestiture
Transaction Financing
The Scoop
A plan for the Shore
Shoreline Partners was opened in 1992 when friends Phil Currie and Mike Brustkern
decided to create a firm designed specifically to serve middle market companies.
Today, the firm focuses on representing companies that bring in revenue of $10
million to $200 million. Shoreline also employs an experienced team of investment
bankers, many of which have been business owners in the past.
The firm opened its initial office in Seattle but since has expanded with a San Diego
office, where it is now headquartered. In addition to serving the Washington and
Southern California areas, Shoreline is also active in surrounding areas such as
Arizona and Nevada.
Theyre here to serve

The firms acquisition department includes a bevy of subservices: research of
potential target companies, database searches and attention to what clients can gain
from acquisitions. Additionally, the unit takes into account a number of different
factors before undertaking a transaction, such as financial and strategic compatibility,
geography, corporate culture and management.
Shoreline also works to help companies build exit value by creating a plan to make its
client company as attractive as possible as a target. The plan includes finding and
building upon companies' competencies, and making sure firms have a clear exit
strategy. On its site, Shoreline also provides an interactive value calculator that
companies can use to see if they are a good candidate for selling off their business.
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Shoreline Partners LLC
Once a companys candidacy has been established, Shorelines sales and divestiture
department comes into play. This area approaches prospective buyers with the right
background and qualifications to be a buyer, helping target companies to obtain their
highest value. Additionally, this unit helps to work out the fine details of tax matters,
consulting agreements, payment structure, leases and future operational issues.
Last but not least, Shorelines transaction financing unit helps its clients find financing
solutions for acquisitions, expansion, refinancing and for a range of corporate-related
issues. To do this, Shoreline evaluates a business financial state and helps to
negotiates collateral, repayment plans and other terms for the firm.
Keeping busy
The firm has served as advisor for a spate of notable privately held companies,
including advising WD-40 on its sale of some of its manufacturing operations to VML
LLC and advising Borrego Springs Bank on the sale of its majority ownership to the
Viejas Band of Kumeyaay Indians. Although it mostly serves privately held
companies on the smaller end, Shoreline works with acquirers of all sizes.
Getting Hired
Toe the line
The firm doesnt provide clues on its site regarding ways to get hired, but job
candidates can query the company directly regarding the possibility of opportunities.
You can send questions using the contact form on its web site, or even post a cover
letter in the comments area if youre feeling bold.

199
SPP CAPITAL PARTNERS

330 Madison Avenue
28th Floor
New York, NY 10017
Phone: (212) 455-4500
Fax: (212) 455-4545
www.sppcapital.com
SPECIALTIES
EMPLOYMENT CONTACT
See www.sppcapital.com/contact-us.htm
for a list of employees to contact.
Managing Partner & Co-Head
Distribution: Robin Ellis Busch
No. of Offices: 1
Mezzanine Debt
Private Equity
Senior Debt
The Scoop
It came from the 1980s
Created in 1989 to provide private capital deals, SPP Capital Partners has emerged
as a solid name serving the middle market scene, with about 370 financings in total
worth $16 billion. The team of analysts and associates behind SPP Capital Partners
comes from commercial and investment banking backgrounds, and the firms top
management tier has a number of ties with large financial institutions and portfolio
holders. In addition to finding financing solutions for its clients, the firm works on a
number of other financing issues out of its New York headquarters, including
negotiating creditor issues, payment flexibility and covenant structure.
The top brass

The team at SPP Capital consists of just a handful of managing partners, vice
presidents, associates and analysts. But the small group forms a tight-knit unit. Led
by Robin Ellis Busch, who serves as managing partner for the firm (and has worked
as a co-head of distribution since 1993), the team collectively boasts financial
experience in a variety of sectors, including manufacturing and corporate finance
and even real estate and aviation. Busch supervises the team with a variety of deals,
including selling, negotiating and structuring debt and equity securities, financing
deals both domestically and abroad. She was a co-founder of SPP Hambro, the
predecessor to SPP Capital, and previously worked in the capital markets group of
Bankers Trust Company.
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SPP Capital Partners
Breaking it down
By and large, SPP Capital Partners works in three major areas: mezzanine debt,
private equity and senior debt. In its senior debt department, SPP Capital helps
structure senior debt for its clients by using asset-based credit facilities, cash flowbased credit facilities, lease-backed notes and structured or securitized debt facilities
(among others). Within the department, the firm has worked on a number of senior
bank and senior institutional debt transactions, such as deals for Simons
Broadcasting, guitar manufacturer Gibson and environmental services firm SWS
transactions ranging from $10 million to $225 million in value.
Notably, SPP Capital advised on a $576 million transaction for carpet manufacturer
Beaulieu of America, a $215 million deal for catalog retailer Cabelas, a $200 million
transaction for packaging company DS Smith plc, a $155 million deal for the Detroit
Lions football team, a $169.5 deal for Wabash Valley Power and a $150 million
transaction for guitar manufacturer Gibson.
Within its private equity unit, the firm works on coordinating private equity for clients
to help them grow, facilitate a recapitalization to give them liquidity, or assist them in
financing an acquisition or buyout. The department makes sure it takes a number of
factors under consideration, including corporate culture and future goals. Keeping
this in mind, SPP helps its clients place various kind of private equity capital:
redeemable preferred stock, convertible preferred stock, participating preferred
stock, private investment in public equity (PIPE) and common stock.
Tickets to the mezzanine

SPP Capitals private mezzanine fund, SPP Mezzanine Partners, LLC, is an affiliate of
the firm. The fund supplies mezzanine capital for a variety of purposes: refinancing,
growth capital, acquisitions, leveraged recapitalizations, leveraged buyouts and
management buyouts. In addition, the fund seeks out financing deals for established
companies. The fund also works closely with SPP Capital itself to offer financing in
the form of senior and mezzanine capital. Through SPP Mezzanine Partners, the firm
has worked on a number of investments, including B&M, Angelle, SelectQuote,
JetDirect Aviation and SafetySystemsHawaii.
Its all strategy

In addition to its established presence in the banking industry, SPP Capital also
boasts a number of strategic partners with financial institutions. These companies
some are also investors in the firmhave chosen SPP Capital as their sole form of
access to the private capital markets. The partners include Comerica, HSBC, US
Bank, Regions, BB&T Capital Markets, Sovereign Bank, CoBank, National Bank
Financial, NCB, DZ Bank and Brown Brothers Harriman.

201

SPP Capital Partners
Getting Hired
Best foot forward
Snagging a gig at SPP Capital may take a fair amount of inventiveness. While the firm
does a little bit of recruiting directly with colleges and universities, its website is devoid
of job listings or internship information. Candidates who have their heart set on
working at the firm may have luck emailing questions to an employee listed on the
contact us section of the site, located at www.sppcapital.com/contact-us.htm.
202
ST. CHARLES CAPITAL LLC

1400 Sixteenth Street, Suite 300
Denver, CO 80202
Phone: (303) 339-9099
Fax: (303) 339-9085
www.stcharlescapital.com
SPECIALTIES
EMPLOYMENT CONTACT
www.stcharlescapital.com/firm/recruiting.
php
Managing Director: Wesley A. Brown
No. of Offices: 1

Private Capital Raising
The Scoop
Meet St. Charles
Originating in 2005, St. Charles Capital LLC was formed in Denver by former bankers
from merger and acquisition firm The Wallach Company. St. Charles Capital set out
to focus on assisting publicly or privately held middle market companies in the
surrounding Rocky Mountain region and the rest of the U.S. with an array of
investment banking services. Those services include recapitalizations, M&A, debt
and equity private placements, fairness opinions and financial advisory services.
In particular, the firm focuses on four industries to serve its clients: diversified
industries, financial services, health care and technology. In those industries, St.
Charles Capital has completed approximately 150 merger and acquisition deals worth
a total of more than $5 billion (in addition to completing 125 strategic financial
advisory transactions).
What they provide

The firm provides its services through three different departments: financial advisory
services, mergers and acquisitions, and private capital-raising. Through the financial
advisory services unit, St. Charles offers clients the opportunity to get advice and
assistance on a number of projects, including project evaluation, fairness opinions,
acquisition review, strategic planning and capital restructuring.
The firms mergers and acquisition group takes on a detailed transaction process for
each client. The first step involves planning and review. During this step, St. Charles
helps a company define its goals and work out what financial issues it needs to tackle
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St. Charles Capital LLC
(such as liquidity, capital, income and personal concerns). From there, the firm
performs a review of its client by speaking extensively with management, visiting sites
and analyzing the business finances. The next step in the process involves valuation,
which establishes a price that a business is worth. St. Charles works with its clients
on this through analyzing a business history, performance and competitors, taking
the current business climate into consideration. The firm also works to do a thorough
buyer analysis, marketing of its client, and finally, management of due diligence,
negotiations and closing of the deal.
St. Charles private capital raising department also involves a thorough methodology.
Through its relationships with investors, the firm ascertains who may be good
matches as buyers for a client. After determining a good fit, St. Charles makes sure
the placement process is executed smoothly. This involves developing a marketing
strategy for the client and negotiating the final terms of the transaction.
Theyre dealmakers
St. Charles has also been involved in a number of recent high-profile transactions. In
October 2008, the firm served as the financial advisor for PRN Medical in its sale to
private investment firm Mantucket Capital. In September 2008, St. Charles advised
IT company Accuvant on a recapitalization with capital provided by private equity firm
Sverica and debt capital supplied by PNC Bank. Also in September 2008, St. Charles
represented software company Jabber, Inc. in its sale to networking giant Cisco.
Taking a stand
In response to U.S. Treasury Secretary Henry Paulsons simplified bank-bailout plan
announced in October 2008, St. Charles managing director Wesley Brown had a few
thoughts of his own. The plan, Brown opined in an interview with The Wall Street
Journal, will significantly crowd out the private equity gang in the short run.
Because of this, he believes that the majority of potential issuers will stop their
discussions with private equity investors, and see if they will qualify for government
funding and how much they will get. The private equity investors still have a big role
to play, but it will be delayed and somewhat reduced.
204

St. Charles Capital LLC
Getting Hired
On board with St. Charles
At www.stcharlescapital.com/firm/recruiting.php, employment candidates can learn
about becoming an associate at St. Charles, along with the firms analyst program and
internship program. Those who wish to become an associate at St. Charles should
have several years of experience in investment banking (or a related field, the firm
notes) under their belts. Candidates who have completed finance- and accountingrelated graduated work can also be accepted into the program. The analyst program,
meanwhile, lets candidates work with senior members while polishing their finance
and investment banking skills.
St. Charles internship program, however, may be the toughest nut to crack. The firm
usually only accepts one intern (yes, you read that correctly) for an internship that
generally lasts 10 to 12 weeks. Interns usually work on live transactions and are
undergraduate students in their last year of school. Recruiting for the summer
position begins in late autumn of the previous year.
Though candidates arent always being accepted for the programs, applicants can
email their resume to careers@stcharlescapital.com and the firm will keep it on file
should an opportunity open up.

205
THE DAK GROUP, LTD.

195 State Route 17
Rochelle Park, NJ 07662
www.dakgroup.com
SPECIALTIES
EMPLOYMENT CONTACT
www.dakgroup.com/careers.html
President: Alan J. Scharfstein
Business Sales & Divestitures

Business Valuations
Strategic Partnerships
The Scoop
It came from the 1980s
DAK Group began in 1984 when it was created by its now-president Alan Scharfstein,
who sought to create a firm that placed a strategic focus on serving middle market
companies. Specifically, the firm is fueled by the work of 11 senior employees whose
past professional
backgrounds include work in banking, foreign purchases,
consulting, real estate, marketing, telecommunication and even entertainment.
The firm offers the following services: business sales and divestitures, business
valuations, mergers and acquisitions, strategic advisory services and strategic
partnerships. Its business sales and divestitures group offers help to those business
owners deciding to sell their company. The unit works on all aspects of such deals,
including valuation, qualification, marketing, presentation, structure, due diligence
and closing, helping owners to get the best price for their business.
In its business valuation division, the firm works on valuing companies for estate and
gift tax planning, buy/sell agreements, mergers and employee stock ownership plans.
DAK Groups mergers and acquisitions group keeps busy working on a number of
transactions. It recently advised Amesil on its sale to W.L. Gore & Associates, initiated
the sale of Green Uniform Company to Flynn & OHara Uniforms and advised 3M on
its acquisition of General Industrial Diamond Company.
Through its strategic advisory services unit, the firm works on providing companies
with consultative services like acquiring expansion capital, making companies
private, restructurings, refinancing and corporate advisory activities. And finally, DAK
Groups strategic partnerships group helps client companies realize joint ventures and
strategic alliances.
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The Dak Group, Ltd.
Would you like to take a survey?

Every year, The Dak Group and Columbia Business School sponsor a survey of
owners of middle market firms and CEOs. The survey seeks to get perspectives
regarding the current economic and political landscape. Some ongoing concerns for
companies since the surveys inception include obstacles for business growth, how to
compete in an aggressive market domestically and abroad, and the declining value
of the dollar.
Getting Hired
Get it started
Under the careers link on the firms web site, you will find a simple directive: the
firm is looking for talented professionals who want to contribute to a proven winner.
If you think you have what it takes, submit your cover letter and resume directly to
careers@dakgroup.com.

207
TRENWITH SECURITIES, LLC

3200 Bristol Street
Fourth Floor
Costa Mesa, CA 92626
Phone: (714) 668-7333
Fax: (714) 668-7377
www.trenwith.com
SPECIALTIES
Corporate Restructuring
Global Banking

Private Capital
EMPLOYMENT CONTACT
www.trenwith.com/careers/index.asp
CEO: Ron Ainsworth
Chairman & President: Frank J. Drazka
No. of Offices: 12
The Scoop
Parent and children
Created in 1981 by CEO Ron Ainsworth, Trenwith Group is split into two divisions:
Trenwith Securities, the arm that manages its middle market investments, and
Trenwith Valuation, which offers assistance in performing corporate valuations. On
the investment banking side, Trenwith Securities is responsible for four main
functions: corporate restructuring, global banking, mergers and acquisitions, and
private capital. The mergers and acquisitions subdivision of TS includes both selland buy-side services, such as divestitures, recapitalizations, joint ventures, and
leveraged and management buyouts.
Trenwith Securities also encompasses the firms cross border structure finance group,
established in 2006, which provides financing and structuring advice for overseas
companies involved in U.S.-based M&A or divestiture deals. In addition, the group
works with borrowers based in the U.S. to implement plans to find lower financing
costs for its clients.
A new appointment
In September 2007, Gregory Mark Hill took over as managing director for Trenwith
Securities. Hill is based in New York City but also manages the firms commitments
in China and India, and is pushing Trenwiths operations further into Asia. Previously,
Hill worked at Tsinghua Venture Capital Management, Deutsche Bank and Credit
Suisse First Boston.
208

Trenwith Securities, LLC
Receiving recognition
Trenwith Chairman Frank Drazka was featured in Investment Dealers Digest's 40
Under 40 issue in January 2008 as a top dealmaker. The list celebrates those under
the age of 40 who have engaged in a number of high-profile deals. Trenwith
Securities Vice President Kevin Sendlenski was recognized in the previous years
ranking.
Big in China
In October 2008, Trenwith established the Trenwith Investment Advisory LLC, a unit
based in Beijing, China. The department, to be known as Trenwith Asia, is headed
up by Ron Ainsworth and Gregory Hill, and has access to about 2,000 advisors
through network offices in locations from Hong Kong and Beijing to Shanghai and
Shenzhen. Trenwith has been conducting dealings in the region since 1981, but the
establishment of Trenwith Asia marks the first time the firms permanent presence in
the area.
Getting Hired
Be direct
If youre interested in joining the team at Trenwith, surf on over to the careers link
at www.trenwith.com, where you can sort current openings by title or location. If
nothing strikes your fancy, dont fretthe firm also encourages wannabe workers to
tout their winning qualities by sending in a cover letter and resume directly to
recruiting@trenwith.com.

209
TRIANGLE CAPITAL CORP.

3700 Glenwood Avenue, Suite 530
Raleigh, NC 27612
(919) 719-4770
www.tcap.com
SPECIALTIES
Acquisition Financings
ESOPs
Growth Financings
Leveraged Buyouts
Management Buyouts
Recapitalizations
EMPLOYMENT CONTACT
www.tcap.com/contact/
Chairman & CEO: Garland S. Tucker III
No. of Offices: 1
The Scoop
Leave it to TCap
Founded in 2002 and headquartered in Raleigh, N.C., Triangle Capital Corporation
works for middle market firms, investing anywhere from $5 million to $15 million for
leverage buyouts, management buyouts, recapitalizations, growth financings, ESOPs
and acquisition financings. In addition, the firm (also known as Tcap) has an array
of portfolio companies in a variety of industries, including lawn care, home furnishing,
wind energy, and even 3-D eyeglasses.
Off to a good start

TCap first went public in February 2007 and posted positive results for its first quarter
as a publicly traded company, bringing in $804,730 in investment income, compared
with $505,638 for the first quarter of the previous year.
The encouraging results continued a year and a half later in spite of poor market
conditions plaguing the industry. In November 2008, Triangle Capital reported an
upbeat third quarter, bringing in $5.9 million in investment income compared with
$3.6 million for the third quarter 2007. The increase was largely due to $73.6 million
in new portfolio investments the company made over the course of 2008. The
investments gave Triangle a $2.7 million increase in loan interest, dividend and paidin-kind income.
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Triangle Capital Corp.
Keeping busy
Perhaps TCaps encouraging results have something to do with it keeping busy with
a variety of transactions across fields. Triangle invested in buyout financing of $8
million in subordinated debt and warrants in Inland Pipeline Rehabilitation in June
2008. In the same month, Triangle invested in buyout financing for Wholesale Floors,
buying $3.5 million in subordinated debt and warrants. In September 2008, TCap
invested $12.2 million in landfill operator Emerald Waste Services. And in November
2008, the firm closed a $7.8 million debt-and-equity investment in manufacturer
Novolyte Technologies.
Shoring up capital
In September 2008, TCap finished talks with the Securities and Exchange
Commission to put a shelf offering into effect. The offering will let the firm vend up
to $300 million in additional shares in order to raise capital. The SEC arrangement
gives the firm up to three years to make the offering, although no sales are currently
imminent. The firms chief financial officer said that the offering will largely hinge on
market conditions.
Getting Hired
Get imaginative
There isnt a career section or job listings on Triangle Capitals website, so if you want
to become part of its team, you might have to employ some imaginative tactics.
Firstly, check out the team page for contact information of workers. Second, check
out the contact pagein this digital day and age, it still never hurts to do things the
old fashioned way by putting your cover letter and resume into an envelope and
mailing them on.

211
VERCOR LLC
5590 Bunky Way
Atlanta, GA 30338
Phone: (770) 522-0300
Fax: (770) 206-2247
www.vercoradvisor.com

Private Equity Recapitalization
EMPLOYMENT CONTACT
info@vercoradvisor.com
SPECIALTIES
Business Sale
Investment Banking
Management Buyout
Managing Director: Vijay Madyastha

No. of Offices: 17
The Scoop
A broad range
Vercor is a middle market investment bank that works with companies having a
revenue from $10 million to $100 million. The firm, established in 2000, is
headquartered in Atlanta, but boasts 17 total offices domestically and internationally,
including in New York, Chicago, Nashville, Phoenix, Kansas City, Houston,
Sacramento and Cleveland stateside, and in Toronto, the Netherlands and
Switzerland worldwide.
The company serves its clients through five main departments: business sale,
investment banking, management buyout, mergers and acquisitions, and private
equity recapitalization. In its business sale unit, Vercor uses its consultants to find a
potential buyer for firms both inside and outside their industry. In its investment
banking division, the firm provides services such as debt and equity financing, capital
formation, business valuation and fairness opinions. Vercors management buyout
unit helps management teams looking to acquire all or part of companies.
Meanwhile, its mergers and acquisitions unit helps clients create a plan for their
transaction. Finally, in its private equity recapitalization department, Vercor works
with owners of businesses who are looking to sell part of their company but retain
some ownership.
Although the firm doesnt typically release the dollar amounts of deals on which it
works, it has advised on a number of high-profile transactions, including acquisitions
by Riverside Partners, PeopleLink Staffing, eAttorney, Sports and Entertainment
Direct, and Loctronics, Inc.
212

Vercor LLC
A new boss in town

In March 2008, Vercor appointed Vijay Madyastha as managing director of its
headquarters in Atlanta. Madyastha began his career at accounting firm Arthur
Andersen, and has provided management consulting to academic medical centers,
physician groups, hospitals and health plans. In his new role, Madyastha works
closely with a number of clients on M&A deals.
Hes outta there

In October 2007, co-founder David Perkins decided to sell off his interest in the firm
and relaunched Acquisition Advisors, his previous advisory firm. Perkins, who sold
off his interest in Vercor for an undisclosed amount, said that Acquisition Advisors will
go after larger companies, [offering] more of a platinum service level, a higher price
point from Vercor. In the year before his departure, Perkins closed approximately
$150 million in M&A deals for Vercor.
Getting Hired
Get specific
There arent any job listings on Vercors website, but there is specific contact
information included for each office. So if you have a particular location youd like to
work for, try sending your cover letter and resume to the corresponding address. Try
directing any queries you may have in the meantime to info@vercoradvisor.com.

213
VERDANT PARTNERS
501 W University Avenue
Champaign, IL 61820-8806
Phone: (217) 359-8470
Fax: (217) 359-8870
www.verdantpartners.com
Raising Capital
Strategic Planning
Strategic Alliances
Technology Alliances
Trait Licensing
SPECIALTIES
EMPLOYMENT CONTACT
Business Evaluation
Joint Ventures
Market Analysis
Operational Excellence
Plan Implementation
jwww.verdantpartners.com/contactus.htm
Partners: Dean V. Cavey & Roderick N.
Stacey
No. of Offices: 2
The Scoop
See what crops up
Verdant Partners is a middle market firm with a somewhat unusual focus: the crops
genetics industry (although the company also focuses on all forms of agribusiness).
The firm works on transactions for large companies as well as privately held firms,
and has worked on transactions worth more than $1 billion in total since its creation
in 1998. Verdant is based out of Champaign, Ill., and has an additional office located
in Capitola, Calif.
The firms past and present clients include multinational companies such as Bayer
AG, Japan Tobacco and The Advanta Group to independent agriculture companies
such as Heartland Hybrids, AgReliant Genetics and Floranova. Verdant offers its
clients investment banking services as well as consulting services. Under the
investment banking umbrella, Verdant provides assistance with mergers and
acquisitions, joint ventures and strategic alliances, and helps clients raise capital.
The consulting services the firm offers include strategic planning, technology
alliances, market analysis, operational excellence, plan implementation, trait
licensing and business evaluation. Some of Verdants past consulting assignments
have including developing clients crop genetics plans, finding opportunities for its
customers within nutrition and industrial markets, and helping merge small seed
companies into a large seed business.
214

Verdant Partners
Planting the seed

Within the agriculture industry, Verdant is a significant player, keeping busy advising
its clients on a number of crop- and seed-related transactions. In August 2008, the
firm advised Dairyland Seed Co. on the sale of its equity to Dow Agrosciences (whose
parent company is Dow Chemical). In the same month, Verdant advised Bio-Plant
Research on the sale of its equity, also to Dow Agrosciences. And in June 2008, the
firm advised Soygenetics on the sale of its seed treatment business to Winfield
Solutions. Verdant does not disclose terms of the transactions.
Getting Hired
Send it off
If youd like to join the Verdant team, try sending off your cover letter and resume to
the address and email information listed for each of the firms respective offices
(located under the contact us link on the firms website). Though the firm doesnt
keep job listings on its site, emailing the company your pertinent experiencealong
with the reasons why they should take you on, of courseshould help your chances.

215
WATERMARK ADVISORS, LLC

531 South Main Street
ML-9
Greenville, SC 29601
Phone: (864) 527-5960
Fax: (864) 527-5961
www.watermarkadvisors.com
SPECIALTIES
Industry Research & Analysis
Merger & Acquisition Advisory Services
Private Debt & Equity Financings
Strategic & Financial Modeling
Valuation Services
EMPLOYMENT CONTACT
Greenville office:
531 South Main Street, ML-9
Greenville, SC 29601
New York office:
535 Madison Avenue, 4th Floor
New York, NY 10022
Managing Director: Hagen Rogers
No. of Offices: 2
The Scoop
Leaving their mark
Created to assist privately owned companies, Watermark Advisors LLC, brainchild of

Hagen Rogers, has been open for business since 2002. The firm has two offices,
both located near the waterfront of the East Coast. Its headquarters are situated in
Greenville, S.C., while its second office in New York City opened in September 2008.
Since 2004, the firm has also been a member of the 5,000-strong Financial Industry
Regulatory Authority, which is the biggest regulator for securities firms in the U.S.
What they provide

The firm offers a traditional menu of financial advisory services. Within its valuation
services unit, Watermark helps assess companies worth and provides fairness
opinions for companies going through transactions. In its strategic and financial
modeling department, firms can partner with Watermark to create a CFO decision
support model, which helps companies plan their future growth and financing
structure. Watermarks industry research and analysis division, meanwhile, helps
business owners find detailed information regarding their industry, competition,
market size, trends and opportunities. Merger and acquisition servicesa large part
of Watermarks businessoffers traditional buy- and sell-side services, along with
minority investments advisory services for business owners who may be interested in
selling only part of their stake in the company.
216

Watermark Advisors, LLC
The firms private debt and equity financing sector helps companies raise capital
through privately placing equity, subordinated debt and senior debt. Watermark
helps companies find the necessary capital through private equity groups, venture
capital firms, corporations, banks, mezzanine funds, specialty finance companies
and equity funds.
Getting Hired
Pick your favorite office
There arent any particular steps one can take in order to become an employee of
Watermark Advisors. If youre interested in joining its ranks, however, consider snailmailing your cover letter and resume to either of the companys offices, in New York
City or Greenville, S.C.

217
WILLIAM BLAIR & COMPANY

222 West Adams Street
Chicago, IL 60606
Phone: (312) 236-1600
Fax: (312) 368-9418
www.williamblair.com
SPECIALTIES
Asset Management
Equity Research
Institutional & Private Brokerage
Investment Banking
Private Capital
EMPLOYMENT CONTACT
www.williamblair.com/careers
President & CEO: John R. Ettelson
No. of Offices: 11
The Scoop
'Exceptional financial position'
One week after the collapse of Lehman Brothers, the sale of Merrill Lynch, and the
$85 billion federal bailout of AIG, the senior leaders of boutique investment bank
William Blair & Company sent out a press release assuring nervous investors that the
firm was in an exceptional financial position. The firm wasn't just blowing smoke
unlike many of its competitors, William Blair could honestly state that it had no
external debt, no direct exposure to Lehman and had virtually no risk of writedowns.
At the end of the fiscal year, the firm backed up its assertion that business was still
going well by ranking high on Thomson Financial's M&A tables. The company placed
22nd overall for advisory deals involving the Americas with 45 transactions valued at
$35 billion. The proceeds from these deals boosted the firm's rank in the tables more
than twenty places and showed a 238.7 percent growth from the previous year.
Overall, the firm's M&A team completed 60 deals worth $40.5 billion during 2008.
Chicago pride
In addition to investment banking, William Blair & Company provides a range of
services that include asset management, equity research, wealth management,
institutional and private brokerage, and private capital services. William Blair has 11
offices around the world, but 95 percent of its employees remain based in the
Chicago office. The firm says this unusual structure means a high degree of internal
communication between employees, and the ability for different groups to share
knowledge and expertise. Heavily employee-owned, William Blair has 1,000
218

William Blair & Company
employees (of whom about 175 are principals) and more than $182 million of equity
capital. The firms additional offices are in Boston, Dallas, Hartford, Indianapolis,
New York, San Francisco, London, Shanghai, Tokyo, and Zurich.
The firms roots go back to 1935 when Chicagoan William McCormick Blair opened
a firm with his partner Francis Bonner; from the start, Blair Bonner & Companys
mission was to finance the expansion of local Chicago companies during that citys
boom. In 1941, Bonner decided to relocate to Washington, but Blair, a loyal
Midwesterner, had no intention of leaving his home. Blair renamed the firm after
himself and soon became a leader in local business finance and investment advice
for many of Chicagos wealthiest families. Chicago profited from William Blair &
Companys services, and as the citys local businesses grew into major companies,
the firm profited from them.
Investment banking with William Blair

William Blairs investment banking division is broken into two groups: corporate
finance and debt capital markets. Corporate finance, which operates from the
Chicago, Dallas, Hartford, San Francisco and London offices and a representative
office in Shanghai, serves industries such as business services, commercial and
industrial, consumer and retail, financial services, health care and technology. The
debt capital markets department provides investment banking and advisory services
to both public finance issuers and public and private corporations. The corporate
debt team works on debt restructurings, recapitalizations, and other debt products;
the public finance team offers tax-exempt financing services.
Wizard of M&A
In January 2009, William Blair's head of M&A, Mark Brady, was named Investment
Dealer's Digest Mid-Market Banker of the Year for his work with the firm in 2008.
Brady was recognized by IDD for his work in expanding William Blair's business into
Asia, where the firm completed eight M&A deals in 2008. His contributions include
serving on the Chicago-China Development Corporation for three years, and making
repeated trips to the Guangdong Province in China.
Brady was also the head of a team that performed surprisingly well even in the midst
of one of the worst economies in recent memory. William Blair's M&A department
completed 60 transactions worth $40.5 billion, including 21 cross-border
transactions in 2008. Brady told the publication that his success has been a long
time coming, saying, It took me 17 years to do my first $20 billion of M&A deals in
aggregate, and a month to do my second.
Sweet deals
The massive jump in business William Blair's M&A team experienced in 2008 was
mostly due to its role in the completion of the third largest deal of the year the
219

William Blair & Company
acquisition of Wrigley Jr. Co. by Mars and Berkshire Hathaway. The candy makers
and Warren Buffett teamed up to buy Wrigley for $23 billion. Buffett contributed
about $6.5 billion into the deal and told a CNBC anchor that he was on board
because I've been conducting a 70-year taste test....since I was about seven years
old, on the products. I've done the same thing with Mars products. And they met
the 70-year taste test. William Blair acted as co-advisor on the team.
The firm's other big deal of the year involved another household name found in many
American kitchens. William Blair served as the placement agent on $400 million of
senior unsecured notes issued by J.M. Smucker & Company. The funds from the
transaction helped Smucker finance its $3.3 billion merger with Folgers Coffee. In
November 2008, J.M. Smucker acquired Folgers from Procter & Gamble in an allstock reverse transaction that included the assumption of $350 million of Folgers
debt.
Tops in wealth management

William Blair recently ranked 34th in the country in Barron's 2008 Top Wealth
Managers. The rankings were done by private banking assets under management
and were part of a special report on private banking. William Blair also appeared on
Barron's list of Top 40 Private Banks. The firm came in 25th in all banks with
assets of $10 million plus. As of September 30, 2008, William Blair had more than
$42 billion in assets under management.
Getting Hired
Point of contact
If youre interested in working for William Blair, visit its website. There, youll find
information on college recruiting, including the firms corporate finance analyst and
associate programs, an overview of other professional opportunities, and a link to
apply to any available positions.
220
APPENDIX
Glossary
222
Glossary
Appendix
Annual report: A combination of financial statements, management discussion and
analysis, and graphs and charts provided annually to investors; theyre required for
companies traded publicly in the U.S.
Asset management: Also known as investment management. Money managers at
investment management firms and investment banks take money given to them by
pension funds and individual investors and invest it. For wealthy individuals (private
clients), the investment bank will set up an individual account and manage the
account; for the less well-endowed, the bank will offer mutual funds. Asset managers
are compensated primarily by taking a percentage each year from the total assets
managed. (They may also charge an upfront load, or commission, of a few percent
of the initial money invested.)
Audit: An examination of transactions and financial statements made in accordance
with generally accepted auditing standards.
Auditor: A person who examines the information used by managers to prepare the
financial statements and attests to the credibility of those statements.
Bond spreads: The difference between the yield of a corporate bond and a U.S.
Treasury security of similar time to maturity.
Bulge bracket: The largest and most prestigious firms on Wall Street (including
Goldman Sachs, Morgan Stanley, Merrill Lynch, Salomon Smith Barney and Credit
Suisse First Boston).
Buy-side: The clients of investment banks (mutual funds, pension funds) who buy the
stocks, bonds and securities sold by the banks. (The investment banks that sell these
products to investors are known as the sell-side.)
Certified public accountant (CPA): In the United States, a person earns this
designation through a combination of education, qualifying experience and by
passing a national written examination.
Chartered Financial Analyst (CFA): A designation given to professionals who complete
a multi-part exam designed to test accounting and investment knowledge and
professional ethics.
Commercial bank: A bank that lends, rather than raises, money. For example, if a
company wants $30 million to open a new production plant, it can approach a
commercial bank for a loan.
Commercial paper: Short-term corporate debt, typically maturing in nine months or
less.
Commitment letter: A document that outlines the terms of a loan a commercial bank
gives a client.
223

Glossary
Commodities: Assets (usually agricultural products or metals) that are generally

interchangeable with one another and therefore share a common price. For example,
corn, wheat and rubber generally trade at one price on commodity markets
worldwide.
Common stock: Also called common equity, common stock represents an ownership
interest in a company. (As opposed to preferred stock, see below.) The vast majority
of stock traded in the markets today is common, as common stock enables investors
to vote on company matters. An individual who owns at least 51 percent of a
companys shares controls the companys decisions and can appoint anyone he/she
wishes to the board of directors or to the management team.
Comparable company analysis (Comps): The primary tool of the corporate finance
analyst. Comps include a list of financial data, valuation data and ratio data on a set
of companies in an industry. Comps are used to value private companies or better
understand a how the market values an industry or particular player in the industry.
Consumer Price Index (CPI): The CPI measures the percentage increase in a
standard basket of goods and services. The CPI is a measure of inflation for
consumers.
Convertible bonds: Bonds that can be converted into a specified number of shares of
stock.
Derivatives: An asset whose value is derived from the price of another asset.
Examples include call options, put options, futures and interest-rate swaps.
Discount rate: A widely followed short-term interest rate set by the Federal Reserve to
cause market interest rates to rise or fall, thereby spurring the U.S. economy to grow
more quickly or less quickly. More specifically, the discount rate is the rate at which
federal banks lend money to each other on overnight loans. Today, the discount rate
can be directly moved by the Fed, but largely maintains a symbolic role.
Dividend: A payment by a company to shareholders of its stock, usually as a way to

distribute profits.
Equity: In short, stock.
represented by stock.
Equity means ownership in a company that is usually
ERISA: Employee Retirement Income Security Act of 1974. The federal law that sets
most pension plan requirements.
The Fed: The Federal Reserve, which gently (or sometimes roughly), manages the
countrys economy by setting interest rates.
Federal funds rate: The rate domestic banks charge one another on overnight loans
to meet Federal Reserve requirements. This rate tracks very closely to the discount
rate, but is usually slightly higher.
224

Glossary
Financial Accounting Standards Board (FASB): A private-sector body that determines

generally accepted accounting principles in the United States.
Financial accounting: The field of accounting that serves external decision makers,
such as stockholders, suppliers, banks and government agencies.
Fixed income: Bonds and other securities that earn a fixed rate of return. Bonds are
typically issued by governments, corporations and municipalities.
Generally Accepted Accounting Principles (GAAP): The broad concepts or guidelines
and detailed practices in accounting, including all conventions, rules and procedures
that make up accepted accounting practices.
Glass-Steagall Act: Part of the legislation passed in 1933 during the Great Depression
designed to help prevent future bank failure the establishment of the F.D.I.C. was
also part of this movement. The Glass-Steagall Act split Americas investmentbanking (issuing and trading securities) operations from commercial banking
(lending). For example, J.P. Morgan was forced to spin off its securities unit as
Morgan Stanley. The act was gradually weakened throughout the 1990s. In 1999
Glass-Steagall was effectively repealed by the Graham-Leach-Bliley Act.
Graham-Leach-Bliley Act: Also known as the Financial Services Modernization Act of
1999. Essentially repealed many of the restrictions of the Glass-Steagall Act and
made possible the current trend of consolidation in the financial services industry.
Allows commercial banks, investment banks and insurance companies to affiliate
under a holding company structure.
Growth stock: Industry leaders that investors and analysts believe will continue to
prosper and exceed expectations. These companies have above average revenue
and earnings growth and their stocks trade at high price-to-earnings and price-tobook ratios. Technology and telecommunications companies such as Microsoft and
Cisco are good examples of traditional growth stocks.
Hedge: To balance a position in the market in order to reduce risk. Hedges work like
insurance: a small position pays off large amounts with a slight move in the market.
Hedge fund: An investment partnership, similar to a mutual fund, made up of wealthy
investors. In comparison to most investment vehicles, hedge funds are loosely
regulated, allowing them to take more risks with their investments.
High-grade corporate bond: A corporate bond with a rating above BB. Also called
investment grade debt.
High-yield debt (a.k.a. Junk bonds): Corporate bonds that pay high interest rates (to
compensate investors for high risk of default). Credit rating agencies such as
Standard & Poors rate a companys (or a municipalitys) bonds based on default risk.
Junk bonds rate below BB.

225

Glossary
Initial public offering (IPO): The dream of every entrepreneur, the IPO marks the first
time a company issues stock to the public. Going public means more than raising
money for the company: By agreeing to take on public shareholders, a company
enters a whole world of required SEC filings and quarterly revenue and earnings
reports, not to mention possible shareholder lawsuits.
Institutional clients or investors: Large investors, such as pension funds or
municipalities (as opposed to retail investors or individual investors).
Lead manager: The primary investment bank managing a securities offering. (An
investment bank may share this responsibility with one or more co-managers.)
League tables: Tables that rank investment banks based on underwriting volume in
numerous categories, such as stocks, bonds, high yield debt, convertible debt, etc.
High rankings in league tables are key selling points used by investment banks when
trying to land a client.
Leveraged buyout (LBO): The buyout of a company with borrowed money, often using
that companys own assets as collateral. LBOs were the order of the day in the heady
1980s, when successful LBO firms such as Kohlberg Kravis Roberts made a practice
of buying up companies, restructuring them and then reselling them or taking them
public at a significant profit.
The Long Bond: The 30-year U.S. Treasury bond. Treasury bonds are used as the
starting point for pricing many other bonds, because Treasury bonds are assumed to
have zero credit risk taking into account factors such as inflation. For example, a
company will issue a bond that trades 40 over Treasuries. The 40 refers to 40
basis points (100 basis points = 1 percentage point).
Making markets: A function performed by investment banks to provide liquidity for

their clients in a particular security, often for a security that the investment bank has
underwritten. (In others words, the investment bank stands willing to buy the
security, if necessary, when the investor later decides to sell it.)
Market capitalization (market cap): The total value of a company in the stock market
(total shares outstanding multiplied by price per share).
Merchant banking: The department within an investment bank that invests the firms
own money in other companies. Analogous to a venture capital arm.
Money market securities: This term is generally used to represent the market for
securities maturing within one year. These include short-term CDs, repurchase
agreements and commercial paper (low-risk corporate issues), among others. These
are low risk, short-term securities that have yields similar to Treasuries.
Mortgage-backed bonds: Bonds collateralized by a pool of mortgages. Interest and
principal payments are based on the individual homeowners making their mortgage
payments. The more diverse the pool of mortgages backing the bond, the less risky
they are.
226

Glossary
Municipal bonds (Munis): Bonds issued by local and state governments, a.k.a.
municipalities. Municipal bonds are structured as tax-free for the investor, which
means investors in munis earn interest payments without having to pay federal taxes.
Sometimes investors are exempt from state and local taxes, too. Consequently,
municipalities can pay lower interest rates on muni bonds than other bonds of similar
risk.
Mutual fund: An investment vehicle that collects funds from investors (both individual
and institutional) and invests in a variety of securities, including stocks and bonds.
Mutual funds make money by charging a percentage of assets in the fund.
P/E ratio: The price-to-earnings ratio. This is the ratio of a companys stock price to
its earnings-per-share. The higher the P/E ratio, the more expensive a stock is (and
the faster investors believe the company will grow). Stocks in fast-growing industries
tend to have higher P/E ratios.
Passive investor: Relies on diversification to match the performance of a stock market
index (e.g., the S&P 500 Index or the the Wilshire 4500 Completion Index). Because
a passive portfolio strategy involves matching an index, this strategy is commonly
referred to as indexing.
Pit traders: Traders who are positioned on the floor of stock and commodity
exchanges (as opposed to floor traders, situated in investment bank offices).
Pitchbook: The book of exhibits, graphs and initial recommendations presented by
bankers to prospective clients when trying to land an engagement.
Prime rate: The base rate U.S. banks use to price loans for their best customers.
Private accountants: Accountants who work for businesses, as well as government
agencies, and other non-profit organizations.
Producer Price Index: The PPI measures the percentage increase in a standard
basket of goods and services. PPI is a measure of inflation for producers and
manufacturers.
Proprietary trading: Trading of the firms own assets (as opposed to trading client
assets).
Prospectus: A report issued by a company (filed with and approved by the SEC) that
wishes to sell securities to investors. Distributed to prospective investors, the
prospectus discloses the companys financial position, business description and risk
factors.
Public accountants: Accountants who offer services to the general public on a fee
basis including auditing, tax work and management consulting.

227

Glossary
Request for proposal (RFP): Statement issued by institutions (i.e., pension funds or
corporate retirement plans) when they are looking to hire a new investment manager.
They typical detail the style of money management required and the types of
credentials needed.
Retail clients: Individual investors (as opposed to institutional clients).
Return on equity: The ratio of a firms profits to the value of its equity. Return on
equity, or ROE, is a commonly used measure of how well an investment bank is
doing, because it measures how efficiently and profitably the firm is using its capital.
Roadshow: The series of presentations to investors that a company undergoing an
IPO usually gives in the weeks preceding the offering. Heres how it works: The
company and its investment bank will travel to major cities throughout the country.
In each city, the companys top executives make a presentation to analysts, mutual
fund managers and other attendees and also answer questions.
S-1: A type of legal document filed with the SEC for a private company aiming to go
public. The S-1 is almost identical to the prospectus sent to potential investors. The
SEC must approve the S-1 before the stock can be sold to investors.
S-2: A type of legal document filed with the SEC for a public company looking to sell
additional shares in the market. The S-2 is almost identical to the prospectus sent to
potential investors. The SEC must approve the S-2 before the stock is sold.
Sales memo: Short reports written by the corporate finance bankers and distributed
to the banks salespeople. The sales memo provides salespeople with points to
emphasize when hawking the stocks and bonds the firm is underwriting.
Securities and Exchange Commission (SEC): A federal agency that, like the GlassSteagall Act, was established as a result of the stock market crash of 1929 and the
ensuing depression. The SEC monitors disclosure of financial information to
stockholders and protects against fraud. Publicly traded securities must be approved
by the SEC prior to trading.
Short-term debt: A bond that matures in nine months or less. Also called commercial
paper.
Specialty firm: An investment management firm that focus on one type of style,
product or client type.
Syndicate: A group of investment banks that together will underwrite a particular
stock or debt offering. Usually the lead manager will underwrite the bulk of a deal,
while other members of the syndicate will each underwrite a small portion.
T-Bill Yields: The yield or internal rate of return an investor would receive at any given
moment on a 90-120 government treasury bill.
Tax-exempt bonds: Municipal bonds (also known as munis). Munis are free from
federal taxes and, sometimes, state and local taxes.
228

Glossary
10K: An annual report filed by a publicly traded company with the SEC. Includes
financial information, company information, risk factors, etc.
10Q: Similar to a 10K, but filed quarterly.
Treasury securities: Securities issued by the U.S. government. These are divided into
Treasury Bills (maturity of up to two years), Treasury Notes (from two years to 10 years
maturity), and Treasury Bonds (10 years to 30 years). As they are government
guaranteed, treasuries are often considered risk-free. In fact, while U.S. Treasuries
have no default risk, they do have interest rate risk; if rates increase, then the price
of U.S. Treasuries will decrease.
Underwrite: The function performed by investment banks when they help companies
issue securities to investors. Technically, the investment bank buys the securities
from the company and immediately resells the securities to investors for a slightly
higher price, making money on the spread.
Value stock: Well-established, high dividend paying companies with low price to
earnings and price to book ratios. Essentially, they are diamonds in the rough that
typically have undervalued assets and earnings potential. Classic value stocks
include oil companies like ExxonMobil and banks such as BankAmerica or J.P.
Morgan Chase.
Yield: The annual return on investment. A high yield bond, for example, pays a high
rate of interest

229

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The medias watching Vault!

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VAULT CAREER GUIDE TO

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JOE BEL BRUNO AND THE STAFF OF VAULT

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Copyright 2009 by Vault.com, Inc. All rights reserved.

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Chapter One: The Middle Market Niche

The New Landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Chapter Two: Deals and Dealmakers

M&A Big and Small . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Chapter Three: Research Below the Radar

The Niche . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

Chapter Four: Middle Market Models

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Boutique Shopping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

Chapter Five: Education and Internships

Educational Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29

Vault Career Guide to Middle Market Investment Banking

Chapter Six: Preparing for the Search

Cover Letter and Resume . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33

Chapter Seven: Acing the Interview

Chapter Eight: Career Paths, Compensation and Lifestyle

The Jobs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53

Chapter Nine: Days in the Life

Managing Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66

Allegiance Capital Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75

2009 Vault.com, Inc.

Vault Career Guide to Middle Market Investment Banking

Boenning & Scattergood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87

JMP Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147

Visit Vault at www.vault.com for insider company profiles, expert advice,

Vault Career Guide to Middle Market Investment Banking

Mosaic Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180

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Realigning Wall Street

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Growing in the middle

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Where the action is

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Looking beyond the big guys

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The Middle Market Niche

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The Middle Market Niche

The lure of Wall Street

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THE NEW LANDSCAPE

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Vault Career Guide to Middle Market Investment Banking

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All in the family

Vault Career Guide to Middle Market Investment Banking