Is the US Ruling the Investment Sector?
The investment sector requires attention to detail, to ensure you avoid any slip-ups.
Adding to this, Matt Bruderman says: “There is often a temptation to take short cuts, but these rarely payoff and often cause more trouble and work down the road.”
He shares his insights and core beliefs that ensure that the firm that bears his name does what is best for their clients: “The single most important principal that we follow at Bruderman, and that I care about deeply when it comes to clients is: ‘do it right, do it perfectly, don’t accept anything less’.”
How do you believe investment banking is currently changing in the face of socio-political turmoil? The industry, particularly in the middle-market arena, is always changing. We don’t focus on external factors such as geopolitics that are outside of our sphere of influence. If, and when, we believe that there is a temporary or transitory event that is suppressing or lifting prices, we talk to our clients and advise them on a course of action which we believe will serve them best. Depending on the circumstances, a seller may become a buyer in an unfavourable environment, or vice versa.
What benefits and opportunities do you think lie in the current state of the US’ investment sphere, and in the development of new sectors such as FinTech, AI, etc?
The United States has been and continues to be the hot-bed for innovation, across many industries, and we don’t expect that to change. New technologies, for instance Blockchain or Artificial Intelligence, are providing more traditional business with the ability to become transformative again. For instance, an energy supply company can greatly reduce its costs, raise its margins and increase efficiencies with the help of technology that didn’t exist five years ago. As advisers and bankers, we believe part of our responsibility is to help clients understand how these new developments may help their businesses, impact their industry and how regulators may respond to these changes.
All too often companies are being advised to implement new technologies because they happen to be ‘in trend’, without fully understanding the benefits and costs. Bruderman takes a different approach, behaving more like a fiduciary and educator in these matters. The opportunities relating to new developments are boundless, but making the smart strategic decision requires a steady hand and forethought, just as it always has.
In an uncertain period, such as the one we’re going through now, how does an investment magnate such as yourself weigh up the risks involved in particular transactions?
Simply put, you have to prioritise. There are a lot of business owners who have reached a stage in their life where careful business succession planning, financial and estate planning and life planning have become the priority. We work with our clients, ensuring that the entire spectrum of the transaction and its consequences are discussed and reviewed. While there are always surprises and some things that are beyond control, being diligent and measured in your approach to each transaction and decision tends to lead to the most predictable outcomes for our firm, as well as our clients.
In terms of the US’ future in M&A and investment, what is the biggest change or development you are looking forward to in 2018?
I think that by early 2018 we will have a better sense for any changes in the tax code and how that might impact the M&A world. We’re reasonably optimistic that the US and the global economy will continue to grow and improve, and also believe that some form of tax reform will occur. This should be beneficial for sellers, while a continued low interest rate environment will continue to benefit buyers and those seeking relatively cheap financing opportunities.
Having dealt with transactions in a multitude of sectors, which would you say offers the most flexibility in the transaction process, and why?
Every deal is slightly different, mostly because every seller has particular needs and concerns. The transaction process itself is well defined and relies on solid execution of our process. The changes and challenges come from asking and answering the “what’s next” question. We ask: “What are the family needs, estate planning needs, or desire to acquire another / new business?”. Our flexible and open approach with the client, focusing on their future needs, is one of the biggest contributors to our success.
You are experienced and well-practiced in many areas of banking, finance and law; how does such an array of qualities allow you stand out from your peers?
We work with the best talent available, our team members come from Ivy League Universities, have broad international experience, are specialists in their respective fields and most importantly, work together. One of the greatest advantages a boutique firm like ours has, is that it is not involved in bureaucracy and red-tape. When you are able to combine the straight-forward work flow with a disciplined process and an open setting that encourages everyone to work together and support each other, the quality of work and end result are remarkable.
MATTHEW J. BRUDERMAN
CHAIRMAN & CHIEF EXECUTIVE OFFICER
www.bruderman.com
Matthew Bruderman leads all merchant and investment banking activities for Bruderman Brothers, and takes great pride in being personally involved in each transaction undertaken by the firm. Matthew Bruderman has been active in financial services for nearly 20 years, and represents the third generation of the Bruderman family in the industry. Early in his career he held positions in sales, investment and merchant banking, financial planning, and investment management at T.R. Winston & Company, Shearson Lehman, and Merrill Lynch.
Bruderman Brothers offers holistic advisory services, ranging from best-in-class sell-side and buy-side M&A advisory services to capital raising and strategic consulting services. We strive to accomplish an outcome that is best for a business and its shareholders. With our vast transaction experience and the operating experience of our senior bankers, we know well that one size does not fit all and understand situation specific factors that motivate and drive our clients to engage in a transaction.
