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ooers
Branton & Company is an international merchant
bank specializing in mergers & acquisitions. Mooers
Branton & Company manages a portfolio of investments
through a privately held company named MB Merchant Group,
LLC. Investments made by MB Merchant Group, LLC are early
stage and have been focused on emerging businesses in technology,
hospitality and real estate sectors.
We partner with talented entrepreneurs to build valuable
companies.
Shortly after a merger or acquisition, Mooers Branton &
Company implements proprietary financial and reporting systems,
manages downside risks and then begins the process of creating
value and arranging for permanent financing. Mooers Branton
& Company does not participate in the retail or brokerage
areas of the investment banking industry. We charge no fees
to acquisition prospects. Our goal is to identify sound
investments - not fees.
Mooers Branton & Company provides an excellent opportunity
for lucrative venture capital-like gains on its successes,
however, we operate in an aggressive industry and we strive
to simultaneously minimize risks through our disciplined
business model as well as by virtue of the diversification
that is achieved through our specific, proprietary merchant
banking structure.
Leading with our own capital, generally at the riskiest
stage, necessitates that we diligently evaluate the soundness
of each and every investment.
What is a Merchant Bank?
Better known in parts of the world outside the United States,
a merchant bank is an entity that helps companies grow and
prosper by providing the capital needed to reach their full
potential.
Unlike investment banks, the most critical attribute of
a merchant bank is to lead the investment with the bank's
own money at the riskiest stage and then seek additional
capital to further growth once risks have been managed.
This is the process adopted by Mooers Branton & Company.
This contrasts significantly with various models in the
retail-oriented, commission-based investment banking industry
where incentives are all too frequently not in the right
place due to factors such as Other Peoples' Money.
Another characteristic of traditional merchant banking
is a more intimate relationship between the bank and the
companies it supports. Mooers Branton & Company understands
that its expertise is financial, not operational, but it
maintains close relationships with management in order to
assure that assets are protected and growth is stimulated.
For that reason, it is careful to maintain a manageable
number of companies in its portfolio.
The focus of a merchant bank is developing healthy companies
that ultimately result in a significant return on investment.
Profits for the bank and its investor-partners generally
occur when portfolio companies are acquired or offered for
public investment.
We are not:
Venture Capitalists:
Generally, venture capitalists invest in early stage high-risk
businesses, often based upon unproven products at the "conceptual"
stage and having "blue sky" potential (i.e., a
good story but unproven, often requiring substantial funds
to validate the business - or not). Their targeted investments
usually do not incorporate less risky products or services
that will hedge their potential downside losses. Philosophically,
they tend to accept that a majority of their investments
will not realize the "blue sky" projections and
will consequently fail or provide less than acceptable rates
of return. Venture capitalists generally hope that 20%-40%
of their investments succeed at such high levels that satisfactory
returns are achieved for the portfolio as a whole.
Investment Bankers:
Investment bankers ordinarily serve as an intermediary between
an issuer of securities and the investor. Typically investment
banks maintain a brokerage operation, serving both wholesale
and retail clients, while also offering a number of related
financial and advisory services on a transaction fee basis.
Broker-Dealers:
Broker-dealers are registered and are brokers who also and
often do, trade for their own account. As such, they act
as both buyers and sellers on a principal basis.
Brokers:
Brokers act as an intermediary between a buyer and a seller,
bringing the two together. They must work under the license
of a broker-dealer.

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