Pub. 12 2017-2018 Issue 3

NEBRASKA BANKERS ASSOCIATION 29 For more information, contact Gary Grote at Bridgepoint Merchant Banking at (402) 817- 7940 or ggrote@bridgepointmb. com. Grote spent 23 years in community banking prior to his role as managing principal at Bridgepoint. Bridgepoint helps lower- and middle-market businesses (including banks) sell or raise capital. Bridgepoint Merchant Banking is a division of Bridgepoint Holdings LLC. In order to offer securities-related Investment Banking Services discussed herein, to include M&A and institutional capital raising, certain managing principals of Bridgepoint are registered representatives of M&A Securities Group Inc., an unaffiliated broker- dealer and member FINRA/SIPC. Elevate your standing as a trusted advisor/value provider. There are many providers of credit and deposit services—and they mostly look alike to customers. It takes an inten- tional commitment to provide value in the formof pragmatic tactics and connection to resources. For instance, have you spon- sored a transition planning seminar with a panel including an attorney, accountant, investment banker, and financial advisor (likely one of your employees)? Proac- tively bringing this conversation to your clients ensures your seat at the table as strategic discussions begin. Provide more sophisticated financing alternatives. Most people assume transition plan- ning means selling a business to a third party when the owner is ready to retire. While that may be the case, it might also mean a management buy-out of the founder or a recapitalization strategy that pays a dividend to the owner who uses it to fund trust accounts for family members. Community banks could play a part in any of these strategies, and should most certainly be aware of the structure and mechanics at a minimum. Acquisition loans are sometimes troublesome for banks to underwrite due to the “blue-sky” portion of the request not backed by traditional collateral. An SBA guaranty is a well-known solution, but there are also mezzanine lenders that provide additional debt that may be more flexible and user-friendly. These lenders are happy toworkwith a local bank leading the deal. Further, in the dividend recapi- talization scenario, there are debt provid- ers that will partner with a community bank to provide higher leveraged loans with no expectation or desire for other ancillary services. Thus, teaming up with an alternate capital provider can fend off competition from large national players. Capture more bank deposits or assets under management. Bank clients are typically more apt to reexamine their vendor relationships during major transactions (expansion, new building, acquisition). If your client doesn’t know that you are well-educated and well-connected in the business tran- sition space, they might be introduced to larger organizations to handle their transaction and ultimately be sold on the thought of that larger organization han- dling all of their financial service needs post-transaction. By proactively inserting yourself into the discussion through client education efforts, you are more likely to avoid that scenario. It is likely that your client would be happy to place their new- found liquidity with a trusted relationship who helped them through the process. In summary, the bank that: 1) Makes the commitment to educate its team on the process and resources available in the business transition arena, and 2) Takes the initiative to be a part of the cli- ent’s planning/deal team, will no doubt outshine its competitors in growing business and retaining long-standing relationships.  WALENTINE O’TOOLE, LLP When time is of the essence, experience counts. Walentine O’Toole blends confidence, experience and knowledge with the personal attention you can expect from a regional law firm. www.w alentineotoole .com 402.330.6300 11240 Davenport St . • Omaha, NE 68154-0125