THE SITUATION

Our client was interested in starting a new business venture and needed liquidity. Since he was founder of a successful public company, he decided to borrow against his concentrated stock position to purchase a private company. As the new business venture grew, he pursued a merger opportunity with a competing firm. Once the merger was completed, he and his wife decided to purchase a new vacation home and finance a personal aircraft.

THE PROPOSED SOLUTION

Expert Advisors Over the course of this relationship, the Private Wealth Advisory team worked in concert with our Investment Bank and Global Bank Group to address the client's complex corporate and personal finance needs.

Exclusive Access The Private Banking and Investment Group served as a bridge between our global capital markets and private client groups to employ a strategy that addressed his corporate and personal endeavors. Using a combination of corporate finance and securities-based, unsecured and residential loans, the client was able to accomplish his goals.

Custom Services By tapping the expertise of our Investment Bank and Global Bank Group, we were able to customize a multifaceted strategy that was orchestrated by the client's Private Wealth Advisory team.

THE RESULT

Through the use of various banking and lending facilities, our client was able to derive liquidity from his concentrated stock position without selling the stock, purchase a privately held company and later enact a corporate merger with a competing firm. The success in his business endeavors led him to purchase a new home and aircraft with his wife to enjoy with their family.

To learn more about our Banking and Lending capabilities, contact a specialist at pbig_bankingandlending@ml.com.

This case study is intended to illustrate products and services available at Merrill Lynch. It may not represent the experience of every client, nor does it indicate future performance. Investment results may vary. The investment strategies presented are not appropriate for every investor.

Borrowing against securities may not be appropriate for everyone and should be carefully evaluated before being used. If securities decline in value, you may be required to pay down the loan or deposit additional securities as collateral. If you cannot do so, all or a portion of your collateral may be liquidated and the proceeds used to pay down your loan balance. A forced liquidation could also trigger a potential taxable event.