Mentor Securities Research
Advisory Approach
Mentor Securities is a preeminent middle market investment bank providing M&A advisory, corporate finance, and valuation services to lower middle-market companies. Founded in 2007 and led by Chairman & CEO Davis Blaine, the firm combines deep expertise in accounting, tax, and financial aspects of acquisitions with hands-on transaction execution. The firm's thesis is that successful transactions require both technical financial expertise and extensive buyer relationships—Mentor brings both, having completed thousands of assignments resulting in multi-billions of dollars in transaction value.
The firm's sweet spot is founder and family-owned businesses with revenues between $15 million and $300 million seeking sale, recapitalization, or capital raising. Mentor differentiates through its unique team background: professionals come from accounting firms, law firms, and various management and operational roles across diverse industries. This operational experience allows them to understand businesses from the inside out, not just as financial metrics.
Mentor is NOT a fit for businesses below $10 million in enterprise value, those seeking limited-process sales, or companies requiring pure asset sales. The firm believes in exhaustive buyer outreach and institutional-quality process management—founders wanting a quick, limited sale should look elsewhere.
Sector Focus
Mentor Securities maintains broad industry expertise across the middle market, with particular depth in:
Manufacturing & Industrial: Precision machining, automotive parts, aerospace components, metal fabrication, building products, and industrial equipment. The team has closed transactions for companies like MSP Industries (automotive OEM parts sold to American Axle/Blackstone), Benjamin Metals (aluminum extrusion sold to Transtar/Aerostar/Chase), and DV Industries (aerospace metal finishing sold to Triumph Group).
Food & Beverage: Branded foods, food distribution, and consumer products. Notable transactions include Hofmann Sausage Company (145-year-old branded food manufacturer sold to Miami Beef in 2024), Better Brands (beer products distribution sold to International Multifoods), and Vans International Foods (frozen foods manufacturer sold to KCA Partners).
Technology & Telecom: Software development, telecommunications infrastructure, internet services, and electronics manufacturing. Representative deals include Guthy-Renker Internet (sold to Looksmart), American Metro Comm (telecom infrastructure sold to SCG Communications/Goldman Sachs), and Cinebase Software (media management software sold to Kodak subsidiary).
Business Services & Distribution: Distribution logistics, business services, and specialized B2B services. Transactions span Commerce Energy Group (energy reseller sold to ACN Energy), Continental Graphics (printing/packaging sold to Consolidated Graphics), and E-Z Shipper Racks (mobile racking systems sold to financial institution).
Process & Fee Structure
Mentor runs institutional-quality sell-side processes with exhaustive buyer outreach. Typical engagement structure includes:
- Retainer: Monthly retainer (credited against success fee)
- Success fee: Industry-standard Lehman or modified Lehman formula on total enterprise value
- Process timeline: 6-9 months from engagement to close
- Buyer outreach: Comprehensive outreach to 200-400 targeted buyers including private equity groups, family offices, strategic acquirers, and institutional investors
The firm requires exclusivity and typically won't take engagements below $10M TEV. Their process includes comprehensive quality of earnings support, management presentation coaching, and structured data room preparation. Mentor's approach is hands-on and educational—founders are guided through each phase of diligence and deal execution.
Buyer Network
Mentor Securities maintains relationships with 2,000+ active acquirers including private equity firms, family offices, strategic buyers, and capital providers. The firm has particular strength in middle-market PE relationships and has closed transactions with buyers including Lightspring Capital Partners, Blackstone Group (via American Axle acquisition), Aerostar Capital, Chase Capital Partners, DFJ Elements, and numerous family offices and financial institutions.
The firm's buyer network spans domestic and international markets, with relationships built over decades of transaction execution. This network is particularly strong in founder and family-owned business transitions, where Mentor's reputation for thorough preparation and honest representation attracts serious buyers.
Deal Track Record
Mentor Securities has completed thousands of assignments resulting in multi-billions of dollars in transaction value. Recent notable transactions include:
2024: Hofmann Sausage Company → Miami Beef (145-year-old branded food manufacturer, Central NY's leading sausage brand)
2023: Astral Dynamic Networks – Strategic alternatives and capital raise advisory (innovative technology/AI company)
Historical transactions across manufacturing, technology, food & beverage, and business services demonstrate the firm's ability to close complex deals across diverse economic cycles. The firm has completed management buyouts, acquisitions, mergers, restructurings, recapitalizations, ESOP transactions, joint ventures, bridge financings, and private placements.
Competitive Positioning
Mentor Securities differentiates from other lower middle market banks through:
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Valuation Expertise: Separate valuation practice means bankers understand fair value deeply—Davis Blaine is an expert in accounting, tax, and financial aspects of acquisitions and has written on technical valuation issues.
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Operational Understanding: Team members come from accounting, law, and operational roles across industries, not just banking.
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Comprehensive Services: One-stop shop for M&A advisory, corporate finance, AND valuations (fairness opinions, solvency opinions, business/IP valuations).
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Network Depth: Decades of relationships across 2,000+ institutional acquirers.
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Hands-On Process: Founders are educated and prepared for each step, reducing anxiety and improving outcomes.
Not a Fit If
Mentor Securities typically declines:
- Businesses below $10M TEV
- Pure asset sales (they focus on going-concern enterprises)
- Founders wanting limited-process sales (Mentor's value is in exhaustive outreach)
- Businesses unwilling to commit to a 6-9 month process timeline
- Companies seeking quick, transactional exits without thorough preparation
Team
The firm has approximately 8-10 senior professionals across its investment banking and valuation practices. Key leadership includes:
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Davis R. Blaine – Chairman & CEO: MBA Finance from University of Michigan, BA from Dartmouth College. Former Executive VP at Arthur D. Little Valuation. Founded American Valuation Consultants (sold to Valuation Research). Expert in accounting, tax, and financial aspects of acquisitions. Author of "Naked Without a Network." FINRA Series 24, 62, 63, 65.
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D. Justin Blaine – Senior Managing Director: BA from University of San Diego, former professional baseball player (Philadelphia Phillies organization). Performs business and IP valuations including Monte Carlo simulation across medical services, automotive, construction, consumer goods, and aerospace. FINRA Series 7, 65, 66.
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Eric D. Klein – Senior Managing Director: UCLA Extension, maintains extensive domestic and international relationships with PEGs, family offices, SPACs, and strategic investors. Previously VP at Hunter Wise Securities and WestPark Capital. Founded and managed businesses in energy/utilities, import/export, manufacturing, and distribution. FINRA Series 7, 63, 79.
Additional professionals include Gary Lotzer, Tristan Blaine, Rhett Plotner, Brad Cashion, and Mark Sarchet as Managing Directors, each bringing specialized industry expertise.
Geographic Coverage
Headquartered in Westlake Village, California (Los Angeles area), Mentor Securities serves clients nationally across the United States with particular strength in California and the Western U.S. The firm also has capabilities for cross-border transactions and international buyer outreach.