Open Hours
Mon - Sat: 8 am - 5 pm, Sunday: CLOSED

Call us: (949) 709-5340
23120 Alicia Parkway, Suite 200, Mission Viejo, CA 92692

Investment Banking

BANKING ON TCDG

“The Corporate Development Group creatively integrates the activities of Business Development and Investment Banking to deliver opportunities for financing, growth, and profits. Leveraging competitive advantages through activities such as corporate partnering, strategic financing, mergers and acquisitions, and strategic planning are a TCDG hallmark.”

TCDG is known for its focused expertise in the food and agribusiness industries. TCDG has worked with a broad range of food companies over the last 10 years, from regional cooperatives to large companies. Given the on-going changes in the food industry, it is critical to have an advisor that thoroughly understands food industry trends, consolidation fundamentals, and specific value drivers. TCDG is comprised of a dedicated team of experienced professionals that understand the unique characteristics of the food industry. Having completed numerous transactions TCDG provides clients with superior industry-specific knowledge and insight, an in-depth understanding of key trends and value drivers and significant experience on relevant investment banking projects.

  • img
  • img

“No problem can be solved until it is reduced to some simple form..”

- J.P. Morgan, Financier

TCDG’s expertise in M&A and capital placement are recognized in all segments of the food industry, from producers and processors to wholesale distributors, including evolving specialty areas such as healthy lifestyle products, and natural/ organic foods. This in-depth industry knowledge combined with unparalleled transaction experience in the middle market, provides our clients with exceptional valuations and superior results.

Besides conventional investment banking activities the following are the differentiating areas we specialize and excel in:

Strategic Acquisition and Consolidation (“SAC”)

The Corporate Development Group has specifically designed this process to assist middle market food companies in developing and implementing strategic acquisition and consolidation activities.

  • SAC enables companies to create a served market dominance by:
      1. * Utilizing external resources to accelerate growth beyond internally achievable.
        * Expanding in a time-efficient manner the key business units/ product lines that will contribute the most to achieve economies of scale.
        * Creating above average earnings through operating efficiencies, increased penetration with customer/markets, SG&A absorption, and other benefits in purchasing and cross-selling.
The TCDG Advantage:
  • TCDG’s integration of industry insight, investment banking, and marketing is ideal for developing and implementing realistic acquisition strategies; and
  • Most importantly TCDG stays involved in the consolidation and activities of future growth.
Distressed M&A

Distressed food companies face challenges to satisfy creditors and employee claims while trying to deploy company assets to their highest value. TCDG combines its M&A and Repositioning experience in advising either buyers or sellers of distressed assets. TCDG, with its working knowledge of the food industry, is able to advise a client throughout the entire process, including identification of targets/buyers, participation in a sale/acquisition process, and court proceedings if necessary.

The TCDG Advantage:
  • TCDG begins by researching and gaining a full understanding of the company. This enables TCDG to leverage the identified competitive advantages and valuation of intangible assets.
  • TCDG also brings to the forefront internal drivers (asset utilization, supply chain management, raw material sourcing) and external drivers (industry analysis, economic and technological changes and effects). These determine a company’s future growth potential.
  • TCDG develops a clear picture of the company’s strategic positioning. Then it carefully crafts approaches that exploit synergies arising from the integration of the selling company into the acquirer’s company.
  • TCDG’s clear and deep business understanding (financial and technical) invariably puts us in a strong, controlling position during negotiations.
Strategic Alliances

A corporate alliance is a business relationship between two companies established to enhance the potential for growth and profitability of each party.

  • A corporate alliance is appropriate when there are strategic gaps in critical capabilities that are either too capital intensive or too time consuming to develop internally.
  • More often than not a company cannot afford to build capabilities against all aspects of both the innovation and the activity streams. Alliances are an excellent solution to fill these critical gaps where the company lacks the resources and/or the time to build its own capabilities to superior levels.
The TCDG Advantage :
  • A successful alliance needs in-depth understanding of all aspects of the business. TCDG with its years of experience within the food industry is well positioned to identify, evaluate, and most importantly negotiate a suit able structure of the alliance.
  • With TCDG’s assistance in carefully crafting alliances companies can successfully fill critical capability gaps and enhance their competitive position while staying within the realities of their resource constraints.
CASE STUDY
  • Situation: A California agri-coop, at one time one of the largest in its industry, was suffering severely as its industry continued to undergo momentous changes.
  • Problem: Due to external changes in the industry, revenues were 1/3 of former l evels; the balance sheet was upside down; and plant ran at 45% of capacity. The commer cial bank wanted out because the debt could not be serviced.
  • Solution: We structured a multi-faceted strategic alliance between the agri-coop and one of the world’s largest commodity companies.
  • Benefits: The alliance enabled the agri-coop to increase plant utilization to its max, develop new national and international markets for its products, obtain grower financing, and a new and more flexible commercial bank financing.
Strategic Financing

Strategic Financing is equity or debt, or any combination thereof, provided by a source with which there is a business synergy. It generally accompanies a corporate partnering relationship.

  • The recipient is able to leverage its competitive advantages to obtain stra tegic financing on a favorable basis through: greater flexibility in structure, terms and pricing, and the highest possible asset and share valuations.
  • The financing source recognizes an opportunity to achieve a higher return on investment with lower risk. This results from: an awareness of possibilities of additional new areas of business and an ability to recognize off balance sheet values (such as brand recognition, customer base, market positioning, distribution channels, etc).
The TCDG Advantage:
  • TCDG utilizes its understanding of industry and market dynamics to identify special corporate partnering opportunities and to create advantageous strategic financing arrangements.
  • We bring off-balance sheet, and intangible assets to the forefront; assist both companies in developing new profit centers and create financial expectations that did not previously exist.