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Robert Swain: What Is an Investment Banker?

Tampa, Florida resident and prominent businessman Robert Swain serves as the Managing Director of Essex Capital Group, Inc., an investment banking and corporate finance company. With an impressive career spanning more than four decades in executive positions in a broad array of fields including energy, hospitality, retail, and real estate, Robert Swain utilizes his vast background in business and finance to provide support for Essex Capital Group’s clients.

Investment banking diverges from consumer banks, which take client deposits and hold or invest the money. Investment banks, however,  consult with clients to develop and implement financial strategies, facilitate mergers and acquisitions, and act as a corporate financial advisor to companies of all sizes.

Founded in 2003, the Tampa, Florida-based Essex Capital Group works with privately held companies by evaluating the financial markets and helping their clients to recapitalize via both traditional and non-traditional funding sources. To do this well, Robert Swain and others at Essex Capital group draw on nearly 50 years of collective experience to provide their clients with individualized services to raise millions in capital.

Like the team at Essex Capital Group, those interested in a career in investment banking must develop an in-depth understanding of financial markets, funding sources, market analysis, and business capitalization. Investment bankers maintain a wealth of knowledge, experience, and network contacts that allow them to provide valuable service to their clients.

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Recapitalization

By: Bob Swain

Companies choose to undertake recapitalization transactions to accomplish a myriad of goals, including diversification of debt-to-equity ratios, defense against a hostile takeover, ensuring the lowest possible tax burden, and creating an exit strategy for investors such as venture capitalists. If executed properly by experienced professionals with a keen understanding of the markets and the needs of business and investors, a recapitalization offers tremendous opportunity for companies to advance to the next level of success.
   
When launching a start-up, companies often accept terms for borrowing money that they might not if their businesses had long track records and unlimited credit options. However, after their companies gain success, either showing steady growth or profits, business owners often opt to embark upon a recapitalization effort to improve liquidity. In most cases, recapitalization lowers a company’s debt-to-equity proportion by exchanging securities with higher risk, and therefore higher interest payments, for new financial instruments that utilize the company’s strong points, such as steady cash flow or a strong customer base, to lower interest pay-outs and overall debt cost.

By using a recapitalization to lower the cost of debt without eliminating that liability altogether, business owners realize more liquidity, or available cash, to operate and expand their companies. Moreover, a recapitalization allows owners to maintain control of their company rather than exhausting the terms of an earlier venture capital agreement and introducing the possibility of a sale or takeover. Especially in a small or mid-sized business, recapitalization offers owners the chance to eliminate personal liability that takes over their net worth and limits their ability to obtain credit for family purposes.

In short, recapitalization offers numerous benefits. Essex Capital Group has more than 47 years of experience in investment banking. For more information about financial options that could fuel the growth of your company, visit http://www.essexcapitalgroup.com/index.html.

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Bank of America-Merrill Lynch (BofA Merrill)

by Robert Swain

Today a successful entrepreneur and investor, Robert Swain started out his career near the bottom of the corporate ladder with the drive and commitment to climb to the top. Possessing a Bachelor’s degree in Government and Economics from Bowdoin College, the Tampa, Florida, resident joined the United States Navy after college, graduating from Navy Officer Candidate School with high marks. After serving a three-year term in the military, Robert Swain received an honorable discharge as a lieutenant and went on to work for Merrill Lynch (now Bank of America-Merrill Lynch). Four decades after starting his first post-collegiate financing job at Merrill Lynch, Robert Swain of Tampa, Florida, now serves as Managing Director of Essex Capital Group, Inc. where over the last seven years he arranged roughly $250 million in financing for small- and middle-market companies.

About Bank of America-Merrill Lynch (BofA Merrill): A subsidiary of Bank of America since 2009, BofA Merrill serves as the investment banking and wealth management arm of Bank of America. Comprised of more than 15,000 stockbrokers and overseeing $2.2 trillion in client equity, BofA Merrill operates as the world’s largest brokerage firm. Founded by Charles E. Merrill in 1914, BofA Merrill started out as Charles E. Merrill & Co. By 1915, with the addition of Edmund C. Lynch as a business partner, the firm became Merrill, Lynch & Co. In 1971, Merrill Lynch went public.

BofA Merrill currently provides a number of products and services, including wealth management for high- and ultra-high-net-worth clients; oversight of retirement benefits; and the handling of mutual funds, stocks, bonds, and other investment products. In December 2010, BofA Merrill launched one of its newest electronic trading platforms, the eFX, which allows customers to trade options 24 hours a day, 6 days a week. Learn more about BofA Merrill at www.ml.com.

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