Category Archives: Late Stage

Capital Looking For a Home in Charleston, South Carolina: An Interview with Bobby Pearce

Bobby Pearce is an attorney with Smith Moore Leatherwood and the co-managing partner of the firm’s Charleston office. His practice includes mergers and acquisitions, corporate law, private securities offerings and shareholder disputes.

Pearce has an entrepreneurial background, having started or invested in multiple companies, and since 1984, he’s spent a great deal of time working on economic development initiatives for the state of South Carolina and the Charleston area.

Key Takeaways:

  • There is a broad chasm in South Carolina between investors with money and companies seeking to raise funds. With a shortage of mid-market companies that have the longer-term, proven track record that most investors are seeking, capital often is being left sitting on the sidelines.
  • Established companies, especially with EBITDA of $2 million and above, now have many more options for capital.
  • Charleston is on a fast growth track with its commercial and industrial base of companies; the number of home-grown and recruited successful, mid-market companies is expected to grow exponentially over the coming years.
  • The snowballing growth of mid-market companies in this region will lead to many more successful exits and then much more capital being reinvested into new companies in the Lowcountry of South Carolina, creating a self-fulfilling cycle of formation, growth and corporate and investor success.
  • Tech-savvy and creative millennials are migrating to Charleston at a rapidly accelerating rate because of its livability, coastal amenities, historic charm and now high-impact work opportunities. The region is one of the top 17 fastest-growing metro areas in the U.S. and is experiencing some growing pains, having to explore infrastructure options to better accommodate the increasing influx of people and businesses.
  • Boeing’s new multi-billion dollar aircraft manufacturing and assembly plant here has spurred an explosive growth of investment in the Charleston region’s aerospace and aviation cluster. Daimler just announced its plans to grow the region’s automotive cluster by building a Sprinter plant, which will complement the already-existing defense, tourism and health care industry clusters.
  • South Carolina’s highly-integrated, 16-campus technical education college system has greatly helped to attract Boeing and other companies to the state and the region. This system offers unparalleled industry-specific training and education and thus provides a steady stream of well-trained, qualified employees, which most other states cannot provide.

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Local Investment Driving Memphis’ Diverse and Growing Market: An Interview with Matt Heiter

Matt Heiter is a shareholder at Baker Donelson in Memphis, Tenn. He focuses his practice on public and private securities offerings, mergers and acquisitions, corporate governance and business planning.

Key Takeaways:

  • Companies in Memphis garner capital from a strong local market of investors, as well as eager firms from outside the state.
  • Tennessee government has effectively marketed the state’s attractive business environment, encouraging a steady stream of out-of-state money.
  • The pent-up supply of cash from the recession and a general confidence in the economy has created a robust capital market.
  • In addition to strong financials, companies should focus on their management team when seeking investors.
  • Tennessee’s emphasis on start-ups has increased access to capital for companies of all sizes.

Continue reading Local Investment Driving Memphis’ Diverse and Growing Market: An Interview with Matt Heiter

North Carolina Adds On: An Interview with Lee Lloyd on M&A Trends and Financing the Growth of High-Quality Companies

Lee Lloyd is a senior strategic advisor for M&A and financing transactions through his independent advisory firm, J. Lee Lloyd, LLC. He has over 30 years of professional experience in investment banking, business law and accounting. Mr. Lloyd was previously an investment banker with Goldman Sachs and an M&A/corporate attorney recognized in “The Best Lawyers in America.” He has advised clients on deals ranging from $5 million to $6 billion, including cross-border transactions in over 26 countries.

Key Takeaways:

  • In an effort to deploy capital, private equity firms and mezzanine funds are aggressively seeking out high-quality companies. As a result, companies of that caliber have numerous options for obtaining capital.
  • Since the recession, investors and lenders have become more risk-averse, so lower quality companies have fewer options for obtaining capital.
  • North Carolina companies currently are benefiting from readily available capital across all size and stage of maturity classifications.
  • The increasing ease and accessibility of cross-border transactions is a major trend. These deals are now more viable because of technology, relationships and experience.
  • Early-stage entrepreneurs should pursue external outreach activities to build their networks.
  • Out-of-state investors often seek a local co-investor when pursuing early-stage deals.
  • In the current M&A middle market, many entrepreneur-owned businesses are looking to grow through add-on acquisitions rather than harvest through exit transactions.

Continue reading North Carolina Adds On: An Interview with Lee Lloyd on M&A Trends and Financing the Growth of High-Quality Companies