In the world of boutique investments, finding the perfect deal can be an arduous and time consuming task. Just ask Charles Botchway, the founder and CEO of Madison Street Capital. Madison Street Capital is a Chicago based investment firm that specializes in mergers and acquisitions. Charles Botchway is the former Vice Chairman of Houlihan Smith & Company. Mr. Botchway has an impressive resume especially in the emerging market merger and acquisition field. Botchway has put deals together in Asia, Africa, South America as well as North America. Madison Street Capital is considered one of the top investment companies that handles bankruptcies, financial strategies, mergers and acquisitions as well as other advisory services.
Botchway made a believer out of the investment firm Farragut Capital Partners recently even though Madison Street Capital and Farragut didn’t know each other. Farragut Capital Partners specializes in lower-middle market mergers that fall into the $2-8 million range. Farragut closes more than five deals a year, and none of those transactions involved Madison Street Capital. Farragut likes to tell its clients that it prefers quality over quantity, but their previous deal sourcing platform wasn’t giving them the high-quality deals they needed to maintain that reputation.
Phil McNeill, Farragut’s Managing Partner, told an online news agency that his company likes to focus on companies that know how to be frugal when it comes to asset management. Farragut likes companies that are able to maintain a positive cash flow. Most of those companies are represented by boutique investment bankers like Madison Street Capital, and most of those companies are unreachable for one reason or another. But McNeill said Madison Street was a different kind of boutique investment banker.
Madison Capital had a lower-middle market client that fit all of Farragut Capital’s requirements in terms of asset management and cash flow, and thanks to an online connection that both firms knew about the two investment firms finally got together.
The Farragut Capital is just one of the deals that Madison Capital is involved in on a regular basis. The merger and acquisition industry is getting more complicated because of the recent tax regulations that have thrown several large mergers into limbo. The Pfizer Inc. merger with Allergan is one of those deals. And so is the Halliburton and Baker Hughes merger. Large mergers in the United States and the UK have been put on hold for one reason or another, but Botchway said that Madison Street Capital has not been hurt by new regulations.