Dr. Ken Cyree is the Dean of the School of Business and the Director of the Mississippi School of Banking at the University of Mississippi. He is also the Frank R. Day/Mississippi Bankers Association Chair of Banking, and a Professor of Finance at the University. He holds a Ph.D. in finance from the University of Tennessee at Knoxville. His research interests include banking and financial markets, and his papers have been published in the Journal of Business, Financial Management and Journal of Banking and Finance, among other academic journals.
The culture of debt financing in the Southeast has typically been risk-averse and remains that way today.
Because traditional banks remain risk-averse in debt financing, there are more investment opportunities in the Southeast for private equity firms, venture capital firms and angel investors.
To best fuel middle market growth and activity in the Southeast, create partnerships between venture capitalism, private equity, traditional banking and hedge funds to support companies from inception to the middle market stage and beyond.
The intellectual capital found in the South’s college towns and cities have the resources to spur entrepreneurial growth.
Bill Bynum is the founder and CEO of HOPE (Hope Enterprise Corporation and Hope Credit Union), a community development financial institution established in 1994. He has advised Presidents Clinton, Bush and Obama on community development while serving as a Chairman for the U.S. Treasury Department’s Community Development Advisory Board. He currently serves as Chairperson of the Consumer Financial Protection Bureau’s Consumer Advisory Board. Bynum has received several honors including National Entrepreneur of the Year (Ernst & Young/Kauffman Foundation), Ned Gramlich Award for Responsible Finance (Opportunity Finance Network) and Annie Vamper Helping Hands Award (National Federation of Community Development Credit Unions). Today, HOPE is highly regarded as a financial institution and policy institute that advocates economic inclusion across Mississippi, Arkansas, Louisiana and Tennessee and influences related policies and practices nationwide.
Generally, capital is more difficult to access in the Mississippi River Delta region – which includes parts of Mississippi, Louisiana and Arkansas – than in other areas of the Southeast, because it is home to many underdeveloped, rural communities that investors don’t find attractive.
Many minority business owners live and work in rural regions like the Delta where access to capital is limited.
Bringing traditional financial services back to low-income areas will stimulate economic growth by giving entrepreneurs the opportunity to build equity.
Community Development Programs, like the New Market Tax Credit Program, are a good way to bring capital to areas deemed less desirable, like the Delta.
With a growing and diverse population, the Delta offers strong business opportunities for entrepreneurs who can think creatively about sourcing the capital they need.
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.
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.