Charlene A. Davidson, a longtime corporate banker with Banc of America Securities LLC, is looking to build business with banks and other financial services companies for Costa Mesa-based RSM EquiCo.
Davidson joined investment bank RSM EquiCo in April. She’s spent much of her time traveling for the unit of H & R; Block Inc.’s RSM McGladrey Inc.
RSM EquiCo, which specializes in mergers and acquisitions, started breaking down its business along industry lines in early 2005. It has 10 industry practices with two more,technology and healthcare,likely to be created before year’s end.
RSM EquiCo employs about 125 people in Costa Mesa and 225 worldwide.
Hector J. Cuellar, who oversees Davidson and other industry practice heads as president of RSM EquiCo Capital Markets LLC, said he sees financial services becoming one of the company’s largest segments, alongside the consolidating aerospace and defense, chemicals and rubber and plastics sectors.
As one of the few women deal makers in the industry, the 46-year-old Davidson comes with a weighty resume that spans 20 years in corporate and investment banking experience. She worked at Banc of America Securities and its predecessors for most of the years. That’s where she first met Cuellar, who also once worked with the Bank of America Corp. investment unit.
The Business Journal’s Pat Maio talked with Davidson about her role as a deal maker with RSM EquiCo.
How are RSM EquiCo’s industry practices set up?
Each of the specialty groups is led by a managing or senior managing director. The buoyancy of Cuellar’s scheme was to identify markets. The global financial services market was the most recent addition. The reorganization has been going on for 18 months, where we’ve transitioned to industry specialization. We did not do this 18 months ago.
In the transformation, you will see the word private begin to be removed because we are going to serve public companies as well. I certainly already do.
Pre-transformation, the focus was purely private middle market companies (with annual sales up to $500 million.) We are moving up market. My practice will have a mix of public and private companies.
How many people will make up your team?
I have a team of three professionals. It would be very rare for me to have someone on my team who hasn’t been in the trenches with us in the past. We will build as we go. And we will need to, because the demand and activity are ramping up very quickly.
Are you getting into the game too late?
No. I’m going to reinvent the game.
What acquisitions have you worked on?
It’s difficult to discuss. I was working on behalf of BofA and its clients. For clients, we represented more than 1,200 financial services companies around the world. These included not only the top 100 players in the market, but down to the very valuable community banks.
I can’t say we did this deal with Citibank or American Express. But certainly their logos are part of every pitch I put together for our clients to affirm that we played a successful role for these institutions.
Pretty much anyone you throw at me I’d be able to nod to you and say, “I’ve done work for them.” A great challenge would be to say, “Is there anyone I haven’t done work for?”
What are you seeing in terms of numbers and value of deals?
Generally, for RSM EquiCo, I see a great opportunity and that is validated by the fact that, in 60 days, I am extremely busy. This year is as active as last year. From my perspective, I see activity continuing well into next year.
Would RSM EquiCo itself be interested in acquisitions?
I would not exclude that at all. I don’t think it’s to say we are out there looking for acquisitions. But our strategic model is to grow this business, and growing any business can be done through an organic or acquisitive process. And given that’s what we do for a living, you can bet your bottom dollar that we’re evaluating our own.
Is it difficult working in a world with few other female executives who you can turn to for advice?
It’s reality. I don’t view it as going to work around a bunch of men. The last time I really thought about it was when I was going through the training program at Security Pacific Corp. in 1986 (before BofA acquired it five years later). My mentor told me to put on a thick coat of Teflon if I wanted this to be my career, because I’d be running in a male-dominated world. That was last time I really gave it any thought.
Do you golf?
It is in my blood. I’ve always wanted to golf. My father was a scratch golfer. I watched it and never welcomed learning it as a kid. I was a figure skater. I was a ballet dancer. I was always in tune with it, and wanted to do it; however, I didn’t pick up a stick until well into my career. I recognized that it was important to do so. That’s not why I continue with it today. I fell in love with the sport.
Do you plan to join any professional groups here in OC?
I’ve been here only 60 days. My initial priority is to get the foundation of our practice up and running. But right behind that is to try and find a way to ensure I maximize what I can do in this community. I’m not sure what that is yet. I’m not trying to move a mountain. But I will be very selective to ensure that I’m reaching out through either a mentoring program or an advisory board.
I am getting involved with the Association of Corporate Growth, which has a very active OC chapter.
What advice can you give young female executives trying to move up?
There is no one way to do it. Essentially, I would check any preconceived notions at the door. Work your heart out, with grit and determination, and you’re there. I do believe strongly in reaching out to young women, not because it’s a female thing, but because we come to the door with preconceived notions about what is and isn’t important.
