A COVER STORY
WHO’S
S.C. had big M&A moves in 2013 and on the horizon By Jennifer Oladipo | senior business writer | joladipo@communityjournals.com
A look back at the world of mergers and acquisition this year shows M&A activity on the rise after a few years of less activity. Conditions are better than they’ve been in a long time for making big moves that can change the game for a business or even an entire industry. Companies in the Upstate and other parts of the state took advantage of the friendly environment, but overall South Carolina could do better at making acquisitions part of a growth strategy. SLOW START
Uncertainty about possible tax law changes led to a push in M&A activity at the end of 2012. That led this year off to a slow start. In general, the M&A market was down 20 percent in the first half of the year when compared with 2012, and Southeastern states mirrored that trend. Just three of the 24 deals in South Carolina valued at $10 million or more occurred in the first half of the year. The full picture will be available next month. Industries that are more insulated from political and
“There’s a little bit of a culture here of growing your company and then selling it and you’ve hit a home run.” Hagan Rogers with Watermark Advisors
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MERGING, BUYING, SELLING?
economic instability saw more action. The top five this year were technology, industrial, energy, health care and consumer goods. Valuations have increased, and that’s a positive for sellers, said Hagan Rogers with Watermark Advisors, an investment banking and advisory firm.
SELLING OUT South Carolina sold more companies than it bought this year. That’s not uncommon, said Rogers, but it’s not ideal. When ownership leaves the state, so does the capital that had been flowing through the local economy. Of course, the reverse is also true. He said the biggest barrier to companies growing and staying in the state is more cultural than financial. “I think that’s one of the cultural shifts we want to see in South Carolina,” Rogers said. “There’s a little bit of a culture here of growing your company and then selling >>
UPSTATE BUSINESS JOURNAL
December 20, 2013