Empire Business Solutions, a leading Business Broker and M&A Company in Orange County, California is forecasting a robust market activity for the sale of small businesses in 2015. Continuing the trend of positive economic and market activity that closed out 2014, more privately owned businesses have been able to grow their revenues, cash flow, and balance sheets. This has led to making them more attractive to buyers and lenders. The buyers for these business are poised to grow their business through strategic acquisition to meet their growth projections. A combination of low interest rates, record highs in the stock market, improving employment, and a lot cash on hand with drive the deal the market in 2015. Additionally, Private Equity is sitting on a lot of “dry powder”.
Empire has already experienced this forecasted trend in the first Quarter of 2015. Empire was able to close its first deal of the year in early February, transitioning a manufacture/distributor to a new owner, a small Private Equity firm in a deal that was closed within 30 days, almost at lightning speed as the PEG was closing another deal the following month.
Another example of this trend in the M&A activity of small business is the two new engagements Empire brought to market in January and February.
Manufacture of Performance After Market Auto Parts
This company is a leading producer of performance parts for the automotive after market. They have achieved consistent revenues growth since it inception in 2005 even through the Great Recession. Quality and service has made this company a leader in its field and contributed to 2014’s 25% growth year over year. Company markets it products world wide mainly through distributors and only products for imported cars. Vast opportunity for growth by tapping into the domestic market. Factory currently only running a 1/3 capacity so growth can be achieved fairly quickly with a strategic partner with distribution channels.
Metal Working Equipment Dealer
This profitable Southern California metal working equipment dealer and service company is a long established dealer with an strong customer base. This company provides equipment and machine shop services to businesses all over Southern California. The company enjoys an excellent reputation for sales and customer service from the customers and vendors it serves. This company represents a wide range of manufactures which provide the company with outstanding support for their products.