Monticello Capital is one of the very few firms of its size and prestige in the United States active on both the “buy side” and the “sell side” of M&A advisory work.

Conflicts of interest and the appearance of conflicts of interest are carefully vetted before any client is signed for an M&A transaction.

Case Summary

The client, a multinational conglomerate and the largest firm in its industry, came about as the result of its own series of mergers and consolidations. One of the subsidiary corporations involved in the industry consolidation was a business development client of Monticello Capital. As a result of the industry consolidation, this investment bank was retained to divest a technology-specific division. Monticello Capital represented the multinational on the sell side, locating the buyer, a smaller technology company. The sale closed for a combination of cash and equity. As compensation and commitment to the deal, Monticello Capital took a position in the sale, recommending its own “buy and hold” strategy to the seller, which also received equity in the technology company. At the end of the month in which Monticello Capital harvested its equity, the net internal rate of return actually realized was in excess of 470 percent.

Case Summary

Monticello Capital’s development-stage client sought growth through acquisition. The acquisition target was a failed dot-com with significant fixed assets: computers, information technology equipment, and a long-term office leasehold. The acquired firm had essentially squandered its start-up capital on technology infrastructure significantly exceeding its needs and its second round private equity capital on brand equity identification and name recognition. Monticello Capital acquired the dot-com for its client using the buyer’s common equity only. The client doubled revenues within two years of the acquisition and integration.

Case Summary

The buyer came from one of Monticello Capital’s corporate clients, a US-based international private equity fund. The qualified and sophisticated American investor was under age 40 and building significant personal net worth. Monticello Capital acquired an advanced-technology manufacturer for him using a leveraged buyout, the investor’s cash, and an inventive seller’s note that retired years before the seller’s expectations upon a subsequent re-leveraging by Monticello Capital. Through continued association with this investment bank, the buyer became the sole owner of the manufacturer, whose revenues and profits increased dramatically with the executive efficiency of new ownership and a geographic move of the plant.