With the dynamic business environment in Los Angeles, middle market investment banks have been playing a crucial role in advising and supporting small to mid-sized companies. In 2020, these banks implemented various strategies to help their clients navigate market uncertainties and capitalize on new opportunities. By understanding the landscape and their strategic focuses, companies can better leverage the expertise of middle market banks to fuel their growth.
Specialized industry expertise and relationships
Many Los Angeles-based middle market banks have deep expertise in certain industries such as technology, healthcare, consumer goods, etc. They leverage industry specialization to provide tailored strategic advice and access to key decision makers. For instance, Trivest Partners has a dedicated Technology group that guides tech companies through M&A transactions and growth financing.
Focus on technology and digital transformation
With the acceleration of digitalization in 2020, middle market banks in Los Angeles increasingly focused on the technology sector and digital transformation projects. They brought deep understanding of tech business models and emerging technologies such as cloud, AI, IoT to help clients build digital capabilities and unlock new opportunities.
Emphasis on M&A advisory
Providing M&A advisory remained a key service of many Los Angeles middle market banks in 2020. They assisted clients in buying and selling companies, securing deal financing, and post-merger integration. For example, Piper Sandler advised on 115 middle market transactions in 2020, with total deal value exceeding $10 billion.
Expansion of capital raising capabilities
Apart from M&A advice, some banks expanded their capabilities in equity and debt financing services in 2020. They leveraged extensive investor networks to help middle market clients raise growth capital through various instruments such as PIPEs, IPOs, high yield bonds and syndicated loans.
Increased sector and geographic coverage
To enhance support for existing clients and reach new ones, many middle market banks in Los Angeles broadened their sector and geographic coverage in 2020. Some branched into new industries and cities/states while others opened up new offices to get closer to clients.
In 2020, Los Angeles-based middle market investment banks demonstrated agility and resilience amid uncertainties. By sharpening industry expertise, emphasizing technology, strengthening M&A and financing capabilities, and expanding coverage, they continued providing value-added advisory and access to capital to help clients seize growth opportunities.