Investment Banking & Strategic Advice

Mergers and acquisitions, corporate finance and strategic advisory services
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Investment Banking & Strategic Advisory Services

We help our clients understand, evaluate and manage risks and opportunities, in order to maximize enterprise value.  We advise on the best way and time to sell or buy a business.

We offer traditional investment banking services, including capital raising, capital structure optimization, mergers and acquisitions, and private equity investments. Our typical clients are privately-owned, family-run mid-sized companies who have carved out a strong competitive niche in Southern California.

Consulting services to achieve your business goals.

We deliver.

We have broad experience in investment banking, accumulated over many years of working in major investment banking institutions. We offer in-depth industry knowledge, high analytical skills, international perspectives, product creativity, market connections and execution excellence.

Not always are traditional approaches the best way to go forward. At Pasadena Private we work as a team and will sit down with our clients to brainstorm for the best possible response to your specific needs. This constant interaction and cooperation are essential, because you have a solid grasp of the opportunities and challenges of your businesses.

Our relationships are built on trust, ethics, discretion and transparency. We pride ourselves on an honest and effective all-round communication with our clients. We strive to provide rapid answers to your time-sensitive requests, because we do realize that business owners operate under high pressure and need quick answers and solutions to their needs.

Consulting Services:

  • Increase Profitability
  • Reduce / Diversify Risk
  • Lower Cost of Capital
  • Prepare Company for Sale

We often start working with clients early in the process to provide strategic advice on how to best maximize the value of their company and structure to minimize tax consequences.   By looking at customer mix, concentration, expense structures, etc.. we can help companies move towards an optimal structure as they approach a private liquidy event.

Raise Capital

(debt and/or equity)

We develop a financial strategy that is customized to achieve your unique funding needs. Once a funding model is in place we tap our broad network of private equity, family offices, venture funds, and high networth individuals to achieve your equity and/or debt raise.

Choosing Debt, Equity, or a Combination for your Capital Needs

There are two types of financing available to a company when it needs to raise capital: equity financing and debt financing.

  • Debt financing involves the borrowing of money whereas equity financing involves selling a portion of equity in the company.
  • The main advantage of equity financing is that there is no obligation to repay the money acquired through it.
  • Equity financing places no additional financial burden on the company, however, the downside can be quite large.
  • The main advantage of debt financing is that a business owner does not give up any control of the business as they do with equity financing.

Debt

A company would choose debt financing over equity financing if it doesn't want to surrender any part of its company. A company that believes in its financials would not want to miss on the profits they would have to pass to shareholders if they assigned someone else equity.

Pros

Not Dilutive

Cons

Higher risk of bankruptcy

Equity

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The process to raise capital generally falls into 3 Stages:
1. Pre-offering (before approaching investors)

Step 1: Define funding strategy & Terms and Conditions

Pre-offering

What deal are you looking for? What are you hoping to walk away with? What percentage of your business are you willing to part with in return for capital? Are you looking for mentorship or purely funds? The first step in the capital raise process is deciding exactly what success looks like for you.

If you have a clear plan in mind for the funds you want to secure, you’re more likely to secure investment, plus execution then becomes as easy as simply following your plan.

Step 2: Prepare business detail

Your business cannot exist in your head when you present to investors. Now is the time to research, document and project your numbers (users/customers, revenue, expenditure etc).

Investors will want to know about the market potential, your business model, your marketing strategy, budgets and so much more. Make sure you have this information at your fingertips.

Step 3: Find investors

Identify investors active in the companies space and leverage our network to gain warm introductions. 

Step 4: Create pitch presentation

We want to create and tell a compelling story that investors can’t refuse.

2. Offering (liaising with investors)

Step 5: Organize meetings

Offering

The private capital raising process can be a numbers game in more ways than one. We create interest in taking meetings during the presentation roadshow so that investors can learn more about the opportunity directly from the CEO. 

 

Step 6: Facilitate the due diligence process

The work isn’t done just because the pitch is over. Once you’ve wowed investors with your presentation, it’s time to follow through with some impressive evidence. Interested investors will want to do due diligence, so having everything already prepared for them in a virtual data room is part of our preperation prior to going to market and a huge plus when it comes to attracting the attention of potential investors.

3. Closing (securing partnership with investors)

Step 7: Negotiate partnership agreement

Closing

We work with legal teams to draw up the partnership/debt agreement so it works for you, your investor, and the overall business. 

Step 8: Sign and celebrate

Congratulations! Your patience and hard work have paid off - now you can put your plan into action and show the investor/debt holder that your business is the success you know it can be.

For smaller capital needs, Pasadena Private has an in-house private bank that can provide debt financing from $1MM to $10MM to help acquire a competitor, buy out a shareholder, pay a dividend, or capture new business opportunities.

Sell your Company

As a Pasadena Private client, we get to know your business and your financial goals.  We will often build relationships with clients several years before a transaction occurs. As you start to look towards a liquidity event (such as selling your company) we work with you to make sure that your company is well positioned.  This includes giving general advice on capital structure, estate planning and/or taxation, and introducing your business to potential acquirers when you are ready.

Our Process:


Stage 1: Pre-Marketing

  • Clean up your financials
  • Generate marketing materials
  • Create your buyer/investor list

Stage 2: Marketing

  • Make initial contact with buyers
  • Execute NDAs and send CIP to interested buyers
  • Qualify buyers
  • Conduct management presentations
  • Distribute process letters for next steps
  • Receive first-round bids

Stage 3: Diligence

  • Accrue and open a data room
  • Schedule on-site meetings
  • Accept second-round bids

Stage 4: Documentation

  • Finalize third-party diligence under exclusivity
  • Review the proposed purchase agreement
  • Create a funds flow spreadsheet
  • Sign the purchase agreement and initiate wire transfers

Behind the Story

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Pasadena Private was decades in the making, beginning as a vision by the founding partners to create a financial firm, for successful business owners, that could be more creative and more responsive than traditional firms to the unique financial needs of lower-mid cap business owners.

Since the launch of our wealth management firm in May 2018, Pasadena Private has added  supporting lines of business that help our clients grow their businesses and achieve their financial goals.

Pasadena Private Strategic Advisory services was launched in 2022 as a full service investment bank to advise our clients on how best to meet their financial challenges through debt, equity, and M&A services.

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