Two Annapolis investment firms said yesterday that they will merge in order to form a more diversified company that they hope will become a player in meeting the financing needs of small businesses.
Clark Melvin Securities Corp., a stock brokerage firm, and Perkins-DeMaris Inc., a small corporate finance and investment banking firm, will form a joint venture by June 1. Perkins-DeMaris will become a subsidiary of Clark Melvin within a year of that date, said Lawrence T. Lewis III, chairman of Clark Melvin's executive committee.
Mr. Lewis said the acquisition price would be based on the profitability of the joint venture, which would in effect be a merger of thetwo companies' business operations.
"We're looking at serving companies with sales of approximately $1 million to $5 million," Mr. Lewis said. "For this kind of company there's not much available" because bigger investment banks often aren't eager to attract business from companies of that size, he said.
Mr. Lewis said Clark Melvin has wanted to branch out into corporate finance since the company went public in 1988. He said the company had made overtures to Perkins-DeMaris before, but that the company's owner, Earl DeMaris, hadn't wanted to sell.
The combined company will have 28 employees, Mr. Lewis said. It will be headed by Cesar A. Montilla, a former head of South American operations for Kidder, Peabody & Co.