Upstate New York isn’t just for getaways; investment opportunities for businesses abound
For investors who may have moved to the upstate, the area is full of opportunities.
While the choices may seem slim compared to those in the city, the upstate can be plentiful for buyers and sellers. The upstate is full of successful small family businesses in and around its cities.
In addition, talent is flowing into the region’s workforce from several local colleges and universities. His, the State University of New York at Albany, the College of St. Rose, the Rensselaer Polytechnic Institute and Cornell are injecting talented young workers into local economies. While some venture into the big city, others contribute to a cohort of successful small businesses in the upstate.
But for many private companies in the region, there is a need to consider succession or liquidation plans, depending on their goals. While it is more common in cities like New York or San Francisco to start a business with the aim of making it a target of acquisition, other businesses— “lifestyle companies-are built to serve local economies and provide income to homeowners.
They don’t grow as fast as possible with the intention of making an initial public offering, but that doesn’t mean that some of these companies can’t be prime targets for investors, especially when their owners can’t. -be not given much thought to either retiring, or leaving their business, or both.
The upstate could also prove lucrative for buying opportunities.
Small and medium-sized businesses abound in popular industries that funds typically covet, such as healthcare technology, healthcare and hospitals, and consumer goods.
Businesses have already been attacked in recent years. Last year Insight Partners acquired a majority stake in Albany-based CommerceHub, valuing it at $ 1.9 billion. Similarly, Momentive Performance Materials, based in Waterford, was acquired for $ 3 billion through a partnership in 2019.
The business is already done. During the first quarter of this year, 35 operations were carried out in the Hudson Valley and in the Capital Region.
For investors, the pandemic may have changed the perception of uprooting and relocation to the north of the state. Life may be slower outside of Manhattan, but it can be a good thing for professionals ready to change.
Before the pandemic, regions such as the Capital Region and the Hudson Valley may not have been at the top of many fund lists. But there are many private equity funds that have been active in the region for years, and it may be worthwhile for others to consider the benefits of the upstate.
Michael Bucci is a partner at UHY LLP, chartered accountants.