“We needed to complete our refinancing quickly. Because Lyons Solutions completely understood our business needs they were able to quickly design alternative financing options and identify investors that not only brought capital but new sources of business to our rapidly growing investment management firm.”


Brad Gardner, Managing Partner
Emerson Investment Management, Inc.


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New Investors Refinance Venture


The Challenge

Emerson Investment Management, Inc. is a rapidly growing investment counseling firm with clients throughout the United States. The firm is dedicated to the management of separate stock and bond portfolios using individual securities. Emerson was owned by three groups including management (46%), an institutional investor (42%) and outside shareholders (12%). The institutional investor had been a long-term investor in the company and was anxious to realize a healthy gain on its investment and reallocate its funds to other investments. Management wanted to bring in new investors who could help the firm grow, as well as increase their ownership position in the firm. An attractive deal was struck with the institutional investor and management needed to quickly find financing to complete the transaction. Lyons Solutions was retained as Merger & Acquisition advisor to help them realize their goals.

The Solution

Emerson’s management team hired Lyons Solutions to advise them on alternative financing options and insure the availability of capital to meet their tight funding schedule. After reviewing Emerson’s operations and financials, Lyons Solutions Mergers & Acquisitions provided two financing structures in addition to the one identified by the management team. One focused on the company’s existing relationship with its bank and the other with more aggressive lender/investors. Lyons Solutions prepared two offering memorandums, with one targeted for the banking sector, and the other structured to attract more aggressive investors who would provide more capital than would the conservative banking sector. Using its broad knowledge of the financial markets and by contacting existing and new prospects, we quickly identified sources of financing that could provide lower cost capital than management had identified with the added benefit of providing management with a larger stake in the company.

The Result

Lyons Solutions helped management analyze its financing strategy in light of the new options that were developed. Our recommended solution included strategic investors who could assist the company in achieving its aggressive growth targets. With the assistance of these investor’s referrals and contacts, management is more confident in its growth plans and future projected valuation of the company. As a result of the successful financing transaction, management’s ownership of Emerson increased from 46% to 56%. Lyons Solutions provided management with financing options and critical analytics to help secure the financing that best met Emerson’s needs.