Kansas City is fast becoming a more attractive location, the coasts aren’t the only place to spend money.

Kansas City is fast becoming a more attractive location for venture capitalists, angel investors and others who have realized that the coasts aren’t the only place to spend their money. This was the assessment of industry insiders at the ACG Kansas City February 7 breakfast­ meeting: Capital Markets Panel.

Panelists were Kevin Antes, Enterprise Bank; Andre Trudell, UMB Capital; and Brian Zaversnik, McCarthy Capital. The moderator was Bill Conway of CC Capital Advisors.

This year will see some industries on the rise, and others cooling off, the panelists said. One industry that will likely slow this year is “building products,” Antes said.

“It’s been hot for three years, but I think everyone can see that things are built out. They can see that maybe building products doesn’t have as long a tail.”

Zaversnik is seeing tremendous activity in software tech but cautions business owners that they have a responsibility beyond just offering their business as a sale. It’s important that a business bring something extra to the bargaining table, he said.

“We want to see three or four tangible things that you’ve done,” Zaversnik said.

Additionally, all three experts told the packed house that it is important, particularly in the Midwest, to remember that relationships matter.

“Don’t forget the Kansas City mentality,” Antes said. “Relationship building does work.”

Being headquartered in Omaha, Neb., McCarthy Capital has a similar outlook as their Kansas City investments.

“Folks like to work with folks who are very similar to them,” Zaversnik said. “I think the big thing around selling your business is you have to have a reason as to why you want to sell your business, too. Truly think about why you want to sell this business before you go into action.”

In the Midwest, the why of selling and what a business owner wants often comes down to legacy.

“Do you want this to be a legacy within your family,” Trudell said. “Do you want to give up a portion of the business or are you not really concerned that it stays around for the next 50 years?”

In this area, most people want to see the business name carry on for years to come.

Another advantage the Midwest has is that people are very direct when it comes to saying what they want for their businesses, Zaversnik said.

While legacy is important, money also matters, the panelists agreed. Valuations still matter, and in many industries are coming back up which is leading to a more robust outlook for this year.

How can businesses take advantage? After determining what you are looking for in a sale, it’s time to get down to the details – all of which can make a difference in your outcome, the panelists said.

 “Take a look around and be sure that your house is in order to sell,” Trudell said. “Get a clean balance sheet. Take care of cost variable rates. Make sure your suppliers are solid.”

Zaversnik urges owners to do their homework and look at how national and world events can and will affect a business. The November election and its run-up are sure to influence businesses. World situations such as tariff conflicts and Coronavirus need consideration as well.

“Will you need to be cutting costs? Changing facilities? You have to be on top of it,” he said.