A look at what investors, business owners and their advisors see in the year ahead for mergers & acquisitions in the South.
Presented here are highlights from the first annual Investment Banking South Survey, in which we ask investors, business owners and their advisors to look back to 2014 and forward to 2015 in order to give us a sense of where the merger & acquisition market in the South is today and where it is going.
Conducted in April 2015, this survey was completed by 338 investors, business owners and business advisors – such as attorneys, accountants and bankers – from Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee.
As we note in the first paragraph, this will be an annual survey, with the results of each year building on the previous year, so that we can identify trends and patterns over time that may shed further light on the evolution of the middle market in the South.
Continue reading First Annual Market Expectations Survey
Bob Crutchfield is a general partner with Harbert Venture Partners, an institutional capital firm located in Birmingham, AL and Richmond, VA. Harbert Venture Partners invests in emerging technology and healthcare companies in the Southeast, mid-Atlantic and Texas. Bob has launched five successful new business ventures and has led four M&A transactions during his career.
- Serious tech economies require a cohesive economic development model, combining private and public capital to provide predictable funding to fuel the early growth needs of startups.
- A coordinated partnership between public and private organizations is necessary to commercialize the innovative technology being produced in Southern universities.
- Government dollars, in the form of non-return on invested capital or technology-based economic development site prep, are most needed for seed funding of high growth companies.
- State money relies on private intelligence. Therefore, if private entities allocate portions of their budgets towards seed-stage companies, it’s likely that state funding will follow.
- Tech development is not a short-term process. Government funding vehicles are needed to maintain a level of continuity, and private funders can help facilitate funding predictability by smoothing out the disruptions that can result from political changes.
- Investment should be paired with the organizational structure and management expertise that private industries provide for early stage companies to accelerate their commercialization time horizons.
Continue reading Growing the Tech Economy in the Southeast: An Interview with Bob Crutchfield
Mr. Marsden is an attorney at Lanier Ford in Huntsville, AL. His practice is concentrated in the areas of corporate law, securities, and technology. He advises clients entering into private equity transactions and assists them in negotiations with venture capitalists.
- Middle-market Alabama companies in the $10 million to $50 million range can have a difficult time finding capital.
- Bank inactivity has forced underserved middle-market companies to look for opportunities in private debt.
- Organizations like the Huntsville Angel Network provide structure and efficiency to the investment process so that those looking to invest make well-informed strategic decisions with their money.
- For companies above $50 million on the acquisition side, most capital comes from out-of-state.
- State and local governments should create incentives for retaining top talent.
- A diverse management team and a strong board of directors make a company more attractive to investors.
Continue reading Angel Investors Breathe Life Into Alabama Businesses: An Interview with Richard Marsden
Mr. Doeg chairs Baker Donelson’s Business Department in Nashville, Tenn., which consists of more than 200 attorneys in the Securities, Corporate, Mergers & Acquisitions, International, Real Estate, Intellectual Property and Tax Groups in 21 offices across the South.
- Capital is available for companies in the South with strong assets and steady cash flows – especially startups and early stage businesses.
- Increased capital flowing into startups and early stage companies creates a halo effect that is leading to more capital for middle market companies, as well.
- Most money is coming from money centers outside the South, as well as across the globe. Foreign investors, in particular, are looking beyond the coasts for better opportunities in other parts of the U.S., especially the South.
- Southern cities doing especially well at attracting capital include Atlanta, Nashville, Memphis and New Orleans.
- There are a lot of people with money on the sidelines who would like to get involved in equity investments, but they don’t have the experience, time or enough capital to be the lead investor. Need to provide a way for them to get in deals.
Continue reading The “Halo Effect:” An Interview with Bruce Doeg