As managing director at CriticalPoint Partners, a mergers and acquisitions advisory firm focused on middle-market clients, Diane Cabo advises owners on mergers and acquisitions and debt and equity raises with a specific focus on originating and executing merger and acquisition transactions. Cabo says that with 10 years of market experience since the firm’s founding, CriticalPoint has grown into its position as one of Los Angeles’ leading boutique investment banks.

How has CriticalPoint fared in the recent M&A market?

CriticalPoint uniquely combines multiple lines of businesses (M&A execution, deal sourcing and investing) within its “merchant banking” model, and each has its own cyclicality that balances each other. As for the M&A execution side, where we help business owners sell their companies, this complex environment really highlights the value-add that our high-touch advisory model brings to our clients.  Further, we are fortunate to be industry generalists, which allows us to pivot our efforts to focus on where the market is strongest and has the most opportunity.  

Can you tell us about your work in the finance industry prior to joining CriticalPoint?

After graduating Boston College, I worked in the hedge fund industry, primarily analyzing stocks for large fund investments. However, I realized that I was seeking a more client-focused role and wanted more direct interaction with the CEOs behind those companies. I decided to pursue my MBA at Pepperdine University while also interning at an investment bank, leading me to pursue that career path post-grad school. I started my career as an investment banking associate almost 16 years ago and gained invaluable experience at various boutique investment banking firms working on transactions across multiple industries. I joined CriticalPoint over seven years ago as a managing director. 

What is one of the most important professional lessons you’ve learned from your time in the industry? How has it guided how you handle your work?

The most important lesson I have learned in the industry is to focus on developing and using your strengths while finding others to work with who complement those strengths. I believe that once you know your strengths you will never lack confidence in your decision making. Connecting with others and building relationships with entrepreneurs and professionals has been essential for my career progression. The most effective investment bankers are not only good at executing deals, but also skillful at cultivating relationships and managing between both of those functions. Throughout my career, I have chosen to work at companies that are entrepreneurial in nature and have given me opportunities to continuously challenge myself, learn more and grow. 

Who or what helped you climb the ladder in the early years of your career?

I have been fortunate to have many trusted mentors during my career, including teachers, entrepreneurs in my family, work colleagues and other professionals who have given me reliable advice. I have always surrounded myself with optimistic and enthusiastic people who can teach me something from their experiences. These conversations have given me opportunities to enrich my creativity and thinking, and to advise with personality, professionalism and emotional intelligence, but also be better at dealmaking.

What trends in the finance industry should more people be paying attention to? Why is it important?

Despite a period of economic uncertainty and the tightening of credit markets, you will find investors thinking very creatively and still finding ways to structure deals that can be attractive to the seller. There will always be a market for companies that have strong fundamentals and a clear focus on knowing their business and industry. Good deals will always be able to get done even in challenged environments. Another trend we are seeing in the market is sellers seeking smaller acquisitions to increase market scale if they do not feel that timing is optimal to go to market, which ultimately will position them with greater value in the future. M&A is still one of the best alternatives available to companies looking to monetize, expand or diversify.

What is next for your firm?

After 10 years in the market, our reputation has been solidified as a well-respected firm with highly successful outcomes. We are viewed as a boutique investment bank in terms of our headcount, but not in terms of our experience or capabilities.  We have tremendous experience executing deals of any size and have scaled our team to capitalize on, and enhance, our capabilities. We have also expanded our efforts in deal sourcing, allowing us to continue gaining exposure to a wide variety of industries and to better serve our clients across all lines of business. I believe that CriticalPoint is at an exciting inflection point, having just moved into new office space to accommodate our recent growth and continuing to thoughtfully expand our team.