Spotlight On: Silvana Capaldi, Founding Chair, Alliance of Merger & Acquisition Advisors of Tampa Bay
By: Max Crampton-Thomas
2 min read January 2020 — The long-term success of any economy is predicated on both organic growth and consistent M&A activity within the business community. Founding Chair of the Tampa Bay Chapter of the Alliance of Merger & Acquisition Advisors Silvana Capaldi believes the Tampa Bay Region is booming with new opportunities for business deals and the business experts she represents are there to help business owners and investors make the most of their businesses.
What is happening in the Tampa Bay Region market that makes it attractive for an advisory body such as the Alliance to decide to set up shop here?
According to the Census Bureau, Tampa Bay is one of the fastest-growing areas in the United States, which is great for our local businesses, businesses relocating here and startups. We have an enthusiastic entrepreneurial spirit and a very strong, engaged business community. Our support system and services for our young, innovative business startup space continues to grow. We want to see businesses thrive and our goal is to provide education and resources to business owners and business professionals. Business owners are reluctant to attend events for fear of being bombarded with people selling to them. It is our mission to provide a venue where they can hear local business owners share their lessons learned and showcase the talent pool of experts in our community: investors, business leaders, organizations and mentors who are invested in Tampa Bay.
Have you seen a significant uptick in M&A activity in the region?
With our favorable economic condition, availability of bank loans and private equity accessibility, we have seen an increase in M&A activity. For example, ConnectWise acquired companies and then sold to a private equity group, while PGT Innovations acquired NewSouth Window Solutions.
We see companies looking for strategic growth through M&A. They may be looking to gain market share, expand talent pool, gain resources or eliminate competition.
In addition, the benefactors of the M&A deal now have capital to reinvest. These business owners are experienced people feeding back into the entrepreneurial ecosystem, building companies that will one day sell again.
Where are you seeing the most demand for the services the Alliance provides?
The Alliance is both an educational and resource platform for business owners. We want business owners to have an understanding of the options they have, whether they are selling their business, passing the business to family or employees, or growing their business with an investor. So often we hear from business owners stating that they were unaware of options available to them when deciding to exit. We engage speakers with the business owner in mind.
What is the value added by the professional services you offer in facilitating business deals?
There are so many moving parts in a business deal. We provide valuable resources and have a network of professional experts to work with the business owner to maximize valuation and expose them to the right opportunities.
Companies that have approached a transaction intermediary, hoping to sell their businesses, are often turned away for not being “market ready.” Those that go to market sell for a lower value. Then there are deals that fall apart when they get to the due diligence. I worked as a consultant for an insurance agency and the owner claimed he was 100% owner. Through the due diligence process, the client neglected to share that there were two family members who had ownership in the company.
Business owners often think that their business is worth more, only to be disappointed at the number after the valuation. That’s when a professional can come in and suggest adjustments that would increase the value. For example, the buyer may want to know what prospects are in the pipeline, projected future sales, reports or what CRM they are using. Not having that information or tools can decrease the value of the company.
What is your view of the Tampa Bay Area market in the near term?
This is an exciting time for Tampa Bay. We will continue to attract businesses that want to relocate here, and companies that are being formed. Business owners that have exited their businesses are reinvesting into companies. Our entrepreneurial ecosystem will continue to draw young innovators. The University of Tampa’s John P. Lowth Entrepreneurship Center, a partner of the Alliance, is committed to helping innovative startups gain traction, which equates to continually drawing and retaining entrepreneurs. Tampa Bay communities will continue to invest in an already exceptional entrepreneurial ecosystem, allowing Tampa Bay to become recognized as the place to invest.
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