First Done Deal of 2015
Empire Business Solutions, a leading Business Broker and M&A Company based in Huntington Beach is pleased to announce the first successful transaction of 2015. Roy Moss, President of Empire, said “We are quite excited about the prospects for a very active 2015 and this first “Done Deal” of the year is proof that we are off to a very good start.
Tombstone
This was a California-based manufacturer and distributor of plumbing and HVAC (heating, ventilation and air conditioning) supplies. The products are manufactured in China. The company has one full time employee to oversee the Q/C and supply sourcing in China. The company maintains an active inventory of 600 SKUs and caters to the wholesale market segment, maintaining a customer base of approximately 260 customers. Products are distributed throughout the United States. The company has inventory-stocking sales representatives in Texas, Massachusetts, and Colorado. Total revenue was $4.5million in 2014 with EBITDA at $600,000.
The Company was purchase for approximately $1.9 mil by a small investor driven PEG from out of state with seller financing and earn out part of the deal structure.
M&A activity from Main Street to Wall Street seems very active and most forecasts from the leading websites are pointing to increased transactions in 2015.
A recent report from a prominent business for sale website confirms these growth projections. Their survey of brokers revealed a record number of transaction for 2014 since they started keeping track in 2007. The significant increase in the volume of closed deals can be attributed to couple factors. First is the survey reported an increase in qualified buyers who have entered the market. The second important factor was the overall improvement in the business environment. Businesses are performing at a much higher level in terms of revenues and profits which improves their valuations. The median asking prices are growing due to the higher financials being reported. Additionally, as we have reported before, the number of business going to market continues to increase because of the Baby Boomers retiring and wanting to exit their businesses. It is expected that more Baby Boomers will exit in 2015 than in 2014.
All of these factors lead all in our industry to believe 2015 will be a good one.
Empire Business Solutions has been a leading Business Broker and M&A Specialist since 2005 in the Orange County and Los Angeles County area. Empire specializes in representing sellers in Southern California who want to maximize the value of their business.
Contact Roy Moss, President of Empire Business Solutions at 714-374-6430 to discuss the process in selling or buying a business in Southern California.
