XPX - Roy D. Sutton: M&A scene heats up in Northeast Florida

Even just a couple of years ago, Jacksonville-based Heritage Capital Group didn’t have a ton of competition in the local mergers and acquisitions space. Now, with the economy picking up, that has changed.

In the past six months alone, Woodbridge International, a leading M&A firm focused on middle-market companies, has expanded its reach into the Northeast Florida market with a local office run by veteran adviser Roy Sutton. And, in late March, Jacksonville-based Florida Capital Bank announced it was launching a new venture advising owners of privately held companies on how to increase enterprise value led by Chuck Owston, a certified exit planning adviser.

That’s in addition to the corporate advisement/investment banking divisions of larger regional banks like BB&T and SunTrust that also have a presence in the Jacksonville market.

“Right now, with interest rates low, it is a seller’s market,” said Bill Prescott, a principal with Heritage Capital Group. “There is so much capital out there that needs to be deployed, as well as companies that need to grow. ... And because M&A activity is increasing, I think you see many individuals and companies that are going to open up things in this space.”

There is a real need to help businesses buy and sell, leverage growth and increase market share, those in the industry say.

That's the type of thing that attracted Woodbridge to the area, said Sutton, who moved here from Boston.

Since setting up the office, Sutton said he has been impressed with the vitality of the business climate here in Northeast Florida and is actually looking to expand the local footprint of New Haven, Conn.-based Woodbridge with the addition of another deal-maker.

“I can’t believe how much business there is here — it’s almost more than I can handle,” said Sutton, who has been a principal or facilitator in over 100 transactions.

Expect the M&A space to grow continually competitive over the short term.

“Many entrepreneurs have a significant portion of their personal net worth tied to the value of their business,” Owston said. “In the next five years, we expect to see more than half of privately held companies transition ownership.”

Colleen covers the innovation economy, focusing on technology, start ups, finance and health care.

Moved from Transitioning Business Value: August 25, 2015 10:42 AM