Attorney Lee Hodge recently shone a spotlight on the success of North Carolina's burgeoning businesses, joining an elite group at Business North Carolina's Mid-Market Fast 40 Round Table.
Featured in the publication's November 2023 issue, this panel recognizes and applauds the accomplishments of recipients of the renowned Fast 40 award. Spearheaded by Business North Carolina, Cherry Bekaert, Regions Bank, and Ward and Smith, the 2023 North Carolina Mid-Market Fast 40 is designed to celebrate enterprises with exceptional revenue growth and exemplary entrepreneurial spirit.
Joining Lee on the panel were Geoff Foster, CEO and president of Core Technology Molding; Zeb Hadley, CEO and president of National Coatings Inc.; Robert Scott, Vice President of Atlantic Forklift Services; Fred Snow, COO of DMA Industries; and Thad Walton, Senior VP of Commercial Banking Leader with Regions Bank. Through their collective effort, the Round Table highlighted the resilience and dynamism of NC-based businesses. This article will cover only Lee's responses to the Q&A. Click here to read the full conversation.
From the article:
Q: Lee, the Triangle has the reputation as one of the hottest markets in the U.S. What's your take on the economy?
A: From a macro perspective, North Carolina is just a great place to do business. We’ve got a great regulatory climate, a great tax climate. You can see the bar graphs on the national news about the population inflows across the Southeast, and North Carolina has been a big beneficiary of that. It’s feeding the labor pool. Our clients are able to attract people with great skill sets who are looking to move from New York, D.C., New Jersey (and other areas) down to a much cheaper cost of living and better quality of life. North Carolina has always had a strong education system, so we’re turning out our own citizens and people who are coming to the state for education.
Q: As for M&A, are the interest rates hammering business valuations?
A: Hammer is a strong word, but you’ve definitely seen a tick down in valuations. Private equity has plenty of cash on the sidelines. Now, their deals are going to be leveraged, so the cost of capital is impacting valuation. Their models are getting a little tighter. But there’s still a lot of activity, and still plenty of cash they want to put to work. I think, to Thad’s point, people are adjusting to this new normal where money’s not free anymore. But the deal is still worth doing. We’re still seeing plenty of deals that are getting done.
The winners of the 2023 Mid-Market Fast 40 awards were celebrated in August at a prestigious ceremony hosted at the esteemed Grandover Resort in Greensboro. The comprehensive list of honorees can be accessed here. Additionally, the November issue of Business North Carolina offers further insights into the achievements and recognition of these exceptional individuals.
