Glenn Oken is a managing director at Mangrove Equity Partners in Tampa, FL, where he focuses on originating deal opportunities and qualifying acquisition candidates. Glenn has been a private equity investor focusing on the lower middle market for 27 years and has completed 129 transactions across 57 different niche industries.
- For lower middle market companies in Florida, there are no longer geographic barriers. Money is willing to travel.
- However, capital for startup companies may more commonly find seed funding through local angel groups and investors. Once they prove their business model they tend to attract interest from local investors, or from the start-up focused areas of the country.
- Face-to-face meetings are essential in M&A deals. While numbers are important, relationships are key. In-person meetings give both sides an opportunity to assess the character of a potential partner.
- As equity partners seek out lower middle-market companies, they look for those whose products or services are essential, non-cyclical and non-commoditized. Often, this ends up being companies with some measure of engineering content, customization, or technical capability who offer mission-critical products or services.
- Thanks to the strength of the manufacturing and industrial services sector, the South may be one of the best regions for investors focused on those industry categories.
- The M&A market has not yet seen a sudden mass exit by Baby Boomers. Multiple factors, not just age, are involved in an exit decision. Thus, deal volume seems to have followed a natural cycle over the years, rather than a sudden deluge of exiting Baby Boomers.
Continue reading No Geographic Barriers for Middle Market Companies in Florida: An Interview with Glenn Oken
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.
- 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
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.
- 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
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