SC&H Capital, an investment banking and advisory firm with offices in Virginia and Maryland, navigated a difficult year for M&As in 2023, and finished the year with an above-average rate of closure, managing director Matthew Roberson told citybiz.
“Certainly the rising interest rates, inflation and economic uncertainty were headwinds to the broader M&A landscape,” Roberson, who has served the firm for nearly 17 years, said in an email interview. Roberson is also an investor with NextGen Venture Partners since 2016.
“A private equity buyer told me this week that they saw a statistic that only 30-40% of deals that went to market in 2023 actually closed due to these challenges,” he said. “Our close rate was much better than that.” Roberson credited the better performance to working closely with clients and properly positioning “our clients to potential buyers.”
Roberson said the firm achieved many of its 2023 goals, attributing the success to “selecting the right clients and having a team that is deeply committed to helping our clients achieve their goals.” In fact, he counted the firm’s HR policies as one of its biggest achievements last year.
“We were pleased to be able to promote many of our emerging leaders, and add some really sharp talent to our team,” Roberson said. “Our ability to attract top talent is predicated on our commitment to a team-oriented culture and the pursuit of excellence.”
In 2023, SC&H’s senior ranks rose with the addition of Craig Bowden (director), Michael Alessi (principal), Joe Hiefield (vice president) and Mike Fixler (managing director). It also added several others — Jeff Marwil (senior advisor), Neil Westdorp (senior associate), Ryan Goff (senior analyst), Tori Cerny, Michael Hanlon and Mark Doherty (all associates), Tyler Vaughn, Alex Everard and Matthew Blum (all analysts).
In emails to business partners and investors, the firm said it “successfully navigated market complexities, closed deals across diverse industries, welcomed new team members, shared key insights, and made a positive impact in our communities.” SC&H Capital listed the following as some of its important transactions in 2023:
- Sale of Sentry Equipment & Erectors, Inc. of Forest, Va., to ProMach, Inc., of Cincinnati, Ohio
- Sale of ASTECH Engineered Products, Inc., of Santa Ana, Calif. to private equity firm Avem Partners, of Santa Ana, Calif.
- Sale of UES, Inc., of Dayton, Ohio, to Eqlipse Technologies, a portfolio company of Arlington Capital Partners
- Sale of Wise Consulting Associates, of Timonium, Md., to Chicago-based RSM
Commercial Real Estate
MacKenzie Companies
Advertising / Media / Communications / Public Relations
Nevins & Associates
Financial Services / Investment Firms
Chesapeake Corporate Advisors
Commercial Real Estate
Monday Properties
Venture Capital
Blue Delta Capital Partners
Internet / Technology
Foxtrot Media
The firm expects the current year to be stronger than the previous one, amid growing signs of strength across the economy.
“Interest rates and inflation are more subdued, banks are more willing to lend, and buyers are eager to deploy capital,” pointed out Roberson, who held a senior executive role at financial services firm BB&T before joining SC&H Capital.
“We believe many potential sellers who have been sitting on the sidelines will be looking at exploring a transaction in the next 12-24 months. Our expectation is that 2024 will be a very strong year for M&A and sellers in particular.”
