Bill Sorenson, CEO & Principal, Heritage Capital Group Inc.

Heritage Capital Group CEO and Principal Bill Sorenson described to Invest: the intense post-pandemic growth experienced by the firm and discussed how Heritage Capital’s growth directly mirrors the continued prosperity of Jacksonville as a whole.

What were a few key milestones achieved by Heritage Capital Group over the last year?

We recently conducted a leadership change. Our company was originally purchased by our current chairman, Don Wiggins. Early on, he brought on Howard Serkin, the chairman of our advisory board, and together they built the company over a nearly 30-year period as partners. Don also founded a valuation company, Business Valuation, Inc., and the two companies are both complementary and operating under one roof. When I started around 18 years ago, there were around 18 employees between the two companies, and we now have a team of over 50 people. Don and Howard built a legacy and have worked hard to monitor the transition to our new leadership team.

Jacksonville has passed the 1 million mark in population, which has been a milestone. We’re going to continue to grow. It’s been fruitful to be an investment bank in Florida, because this is where people want to relocate. This is where the opportunities are, and we are trying to capitalize on that. We aim to be available and ready to advise owners of privately-owned companies in the middle-market space. We are working to broaden our team and our reach so these owners know we are available to help. 

What is your overview of the banking and financial services sector in Jacksonville?

When private equity was flowing during the peak of the pandemic in 2021, it was extremely hard to keep up; it was like drinking from a fire hose. When the private equity funds were particularly aggressive, the strategic players sat out, but we are now seeing them back in play. With the tightening of the lending market over the last year, due diligence is also tightening up. Lenders have been more cautious, but we are seeing this loosen up. In some industries that answer discretionary consumers’ demands, it will be slow for a while longer. Industrials, healthcare and logistics are still quite strong in Jacksonville. Equity money is still holding strong, and strategic buyers are now entering the market more aggressively.

What makes Jacksonville an ideal location for business expansions and relocations?

With the expanse of land here, there are a number of areas available for development. This provides huge opportunities for aerospace and defense companies. On the industrial side, near the airport, you’re seeing a lot of activity. Our airport is even attempting to address the growing need for direct flights by adding a new wing and more flights. Downtown has a ton of room, and we’re seeing big investments, including those by the Jaguars and Four Seasons.

Our beaches are no longer a secret, and there are amazing coastal real estate deals taking place, which is attracting outside buyers. Jacksonville presents so many opportunities that are not present in most other East Coast cities. 

What makes Heritage Capital Group stand out from your competition?

The complementary partnership with our sister company, Business Valuation, Inc., a full-service valuation firm, which gives us an edge in analytics. That is a unique feature. We have a commanding presence in Jacksonville and have been here for over 40 years. We are active in our community and have prioritized knowing the local people. This along with our membership in Oaklins, an M&A advisory network spanning over 40 countries, allows us to explore opportunities for our clients broadly, including buyers overseas. We’re seeing multiple buy-sell international deals this year, with Canadian and European money coming to the United States. These are all unique features we bring to the table.

Which of your products do you expect to be the main drivers of growth in the future?

Our higher-volume activity is certainly the sell-side deals, which is reflective of the market. There are a lot of target companies in the area based on their size. We pay attention to strategic consulting, particularly in planning exit strategies with owners. Primarily, we address their potential risk factors in play or options to beef up their accounting and finance support. This gives our clients leverage in due diligence. Our clients are encouraged to work with their tax advisers to ensure their tax strategies are aligned with the ultimate transaction and make sure their plan is in place.

Which industries do you expect to positively affect Heritage Capital Group moving forward?

Our growth mirrors Jacksonville’s as a whole, so our growth is bolstered by logistics, distribution and manufacturing. We have a supply chain team, and our motto is, “If you make it or move it, we can help.” Healthcare, rollups, and the service industry are attractive to many buyers, as are B2B services, which include everything from software to logistics, as they are all broadly affected by the supply chain. I anticipate a continued intensity around aerospace and defense. Fintech activity also continues to rise, and there are big buyers here.

What challenges does the banking industry face in Jacksonville?

The biggest challenge involves preparing companies to sell. Jacksonville is a fantastic middle market, which means we will have multigenerational businesses that have done a great job of creating a living. When they need a more formal structure, we love to get involved and help them take the next steps. 

What will be Heritage Capital Group’s main strategies for the next two to three years?

You will see us pushing more to assist with pre-transaction preparation. This involves building up our internal resources as well as building our rolodex out so we can contact advisers who fit a client well, such as an insurance agent, accountant, or financial adviser who has a niche focus. We intend to continue growing our internal and external resources so we can answer the needs of a privately-owned company. Heritage Capital Group is strong within the supply chain, manufacturing, metals, and healthcare industries, and we will continue to cultivate that growth.