True Grit: Dealmaking in the Lone Star State

Original Article: Mergers & Acquisitions - June 19, 2024

In Texas, where business is often as big as the landscape itself, “true grit” defines the spirit of dealmaking. Entrepreneurs and investors alike approach the table with determination, resilience and a fearless drive to succeed. Whether it’s navigating complex negotiations, overcoming market challenges, or scaling for growth, the Lone Star State fosters a unique breed of dealmakers who embrace risk and push forward with unwavering commitment.

Mergers & Acquisitions reporter, Cheryl Meyer, aptly entitled her article around Dealmaking in the Lone Star State when she interviewed Crux Capital Managing Partner, Wayne Moore, asking about the considerations that informed his decision to base his private equity firm in Dallas, Texas.

Moore brought in an analytics firm to assess the top 100 U.S. markets based on population size, competitive dynamics, and growth trends. The findings were clear: there was no need to relocate. “Dallas was the best place in the country to open a private equity firm,” he explains.

Meyer speculates on multiple reasons Texas stands out to dealmakers and weaves together feedback from many well-known names in this industry. Perhaps the primary driver has to do with the state’s booming metro areas and over 30 million people calling the state home. Texas is now the second most populous state, welcoming nearly half a million new residents last year and leading the nation in population growth. Texas is attracting a young, educated workforce, sparking new business growth, ongoing construction projects, and strong M&A activity—despite the broader national slowdown.

This sentiment is echoed by others, including celebrity investor and businessman Mark Cuban, who calls the city home. “Dallas is a hotbed of entrepreneurship. When you have great entrepreneurs building companies, private equity money inevitably follows—and that’s exactly what we’ve been seeing here.”

Of course, rapid growth is often accompanied by growing pains. It can’t always be “bliss and bluebonnets” as Meyer writes.

We hope you’ll find Meyer’s article as interesting as we did and that it may shine a light on the next big thing coming up over the horizon.