News: Morgan Kingston Advisors Aims to Advise Lower Middle-Market Businesses
November 12, 2018
Investment bankers Susan Miller and Sean Mirzabegian recently launched a new firm dedicated to the restaurant sector: Morgan Kingston Advisors. They will advise restaurant clients—franchisees, franchisors and independent restaurant companies—on M&A transactions, sales and divestitures, debt and equity capital raises, financial restructuring and strategic advisory. Securities-related services are offered through an unaffiliated broker-dealer, M&A Securities Group, Inc.
“We both had an opportunity to work and learn from other firms over our careers,” said Miller. “We noticed in the market that as private equity firms have grown in the space, we have seen an elevation in the investment banking firms in regard to the size of companies they will advise. To us, the lower middle market is underserved, and we are excited to provide advisory to that set.”
The duo worked together for more than five years at investment banking firm Mastodon Ventures where they focused on restaurant industry transactions. Miller has 16 years in the space, some of those with a larger firm, JP Morgan. Mirzabegian himself has restaurant advisory experience, and was an entrepreneur in prior years.
For him, the experience of owning his own business “was like my MBA,” he said. “There’s no experience like running a small business. I like to relate to the clients, and I understand what they are going through to some extent, as an owner. That’s pretty valuable to offer.”
Miller explained that in addition to their past experience, the group has established four pillars that guide their work at the new firm: transparency, comprehensive attention to details, efficiency, and thoughtfulness—a thorough understanding of the market.
“We are excited to bring those four pillars to the industry,” said Miller. “We appreciate the challenges smaller companies face. For us, we like to put on a C-suite hat and go really deep for information before the engagement.” She said Morgan Kingston probably spends more time up front, but then once engaged for the assignment will “adhere to a strict timeline” once they go to market with the deal.
They define the lower middle market as companies with $10 million to $300 million in sales. And, they’d like to start early with companies, even before they are hired for an engagement.
“Some are too early in the lifecycle for them to hire us,” she explained. “But we can make those connections and steer them in the right direction early on. Should they franchise? Should they choose debt or equity to grow—assessing their capital structure.” As these companies get larger, when it is time to hire an advisory firm, Morgan Kingston has had a hand in their direction.
“We may meet someone with a couple of units and stay in touch with them until they have 10,” Mirzabegian said. “We’re somewhat watching them and part of their growth at the same time. It’s that entrepreneurial experience that I like, plus the restaurant space is enjoyable and active. It is a living and breathing industry.”
For more information contact Susan Miller at (646) 522-3983, or at smiller@morgankingston.com. Or, contact Sean Mirzabegian at (312) 927-2808, or by email at smirzabegian@morgankingston.com.