2/5/2014

Why Smaller Can Be Better

Categories: Municipal Debt, Strategic Capital Planning

Practically every sales call we make to prospective clients who currently work with another financial advisor tell us they are pleased with the services of their current advisor. It is only after talking with us for just a couple of minutes, do the mangers, elected officials and staff we speak to start to realize the range of services we provide. For example, we are the only local financial advisor who includes their online HOUND flagship client support debt portfolio management and capital planning tool with its services.

Liberty Capital Services works with clients to achieve their potential. Lead by a former elected village official and an MBA, our firm not only understands the “numbers” but is tuned in to the demands the public makes of both elected officials and staff to manage every dollar, despite pressures on local governments to increase municipal services. This is why our financial advisory services include strategic planning, fiscal oversight, and online HOUND debt management and capital planning tool, in addition to debt issuing services. After all, your debt issuance is only one aspect of your financial picture.

While many local advisors work on a transaction by transaction basis, we prefer and achieve results through our efforts to work on a more regular consulting basis. It stands to reason that the time to start planning for your next credit rating is before you have decided to issue a bond, not once your Official Statement is completed and submitted for a credit rating. We recently met with a new client whose credit rating was downgraded several years ago because of a deteriorating general fund balance. Based on the structured approach we take to municipal finance, early into our conversation the client realized that, while we might not have been able to prevent their ratings downgrade, since as advisors we do not make governing decisions, they at least would have had the benefit of being presented with preventative measures and have been prepared for the ratings action, had they been working with us. At fees comparable to debt issuance financial advisory agreements, we will include more regular consultations in our service agreements.

Working with a boutique financial advisor such as Liberty means individual attention to details. Some time ago, we represented a municipality as its financial advisor, which was selling a bond at the same time it was engaged in a difficult law suit. The client was concerned and rightfully so with the potential credit impact the lawsuit would have on its credit rating and ability to get bond insurance. We took the initiative to fully analyze the potential fiscal impact of the lawsuit, developed several “what if” scenarios, should the lawsuit prove successful against the municipality and not only devised a fair and successful presentation to the rating agencies, but made the effort to conference call bond insurers as well, so that they would be able to fairly price their insurance policy. The sale was a success; the bond sold with bond insurance and our client received both a credit rating and interest rate on their Bonds they were pleased with. Whether in this case individual attention means resolving a unique credit concern or as with a majority of our bond sales means calling on prospective underwriters or bond insurers to garner sale participation, the benefit is the same.

So just remember if size alone counts then please consider a firm other than Liberty Capital Services.

But if:

  • understanding your financial potential 
  • providing individual attention to your needs as a client
  • achieving sales results
  • being responsive to your financial advisory needs beyond debt issuance is important to you……….. and
  • size is only one factor,

Then you deserve the benefits Liberty delivers.


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