The M&A Industry has been doing very well in the last couple of years, and this trend is continuing in 2022. In the first 5 months of 2022, we have already closed a dozen deals. Our revenue from sold businesses is up over 50% compared to this same time last year. And we expect many more M&A deals to come with 24 written accepted offers that are currently in due diligence.
It’s a seller market for M&A in 2022
For profitable companies, in the industries that we specialize in, it’s a seller’s market, with most of our assignments receiving multiple offers. In the last six months, we have sold companies in every major industry we focus on: Technology, Manufacturing, Construction, Distribution, Healthcare, Services, and Transportation. Here are some of the deals we closed within these sectors.
1. SaaS Company in Florida that provides HR, E-Learning & Skills Development Solutions
A software company that provides software and services to corporations that need to drive professional development initiatives. They have a loyal customer base, predictable recurring revenue stream, and attractive operating margins. The owner contacted us because they were ready to retire as they were approaching retirement age. We introduced a number of buyers, including other software companies and entrepreneurs. The best offer came from a private equity group. This software as a services M&A deal was sold in January of 2022.
2. CNC Machine Shop Business in Rochester, NY
A company that manufacturers components for industries such as Technology, Optics, Healthcare, photonics, aerospace, and automation. The owner was ready to retire after 30 years in the business. They have a 22,000 sq. ft. facility and provide prototyping, production runs, mechanical subassembly, tuning, and more. We sold the company to an individual buyer with financing in place and experience working for a large metal fabricator in the area. This business was sold in the first quarter of 2022.
3. Fiber Optic Installation & Repair Contractor in the Western US
This company has been established for over 40 years providing telecommunications cabling services for broadband and traditional telecom customers. They have a well-trained workforce of over 30 employees. In addition to installation and maintenance, they also provide emergency repair. The owner was interested in retiring. We were able to locate a number of potential buyers, and the owner was able to sell the business for a multiple of more than 4 X their annual net cash flow. The buyers had worked in the industry and had a third-party investor. This business was sold in the first quarter of 2022.
4. Homecare Business in Connecticut
This business provides in-home services to the elderly in Connecticut. The owner had considered selling for a while but finally became motivated to sell the business quickly and priced the company accordingly. We were able to locate several potential buyers, but the best offer came from a person that owned a business in the construction industry that wanted to diversify their income by purchasing a business in a recession-resistant company like home care. The buyer was willing to move quickly, and we sold the company within 5 months from start to finish.
5. Beverage Distribution Business and Warehouse on Long Island, NY
A company that distributes a wide variety of top brand beverages, including soda, bottled water, sports drinks, iced tea, juice, iced coffee, and more. They have a large warehouse with 30,000 sq. ft and a fleet of trailers to distribute to customers, including delis, grocery stores, coffee shops, pharmacies, wholesale beverage businesses, and more. The company produced over $40 Million in revenue annually. Their financial information wouldn’t support a bank loan, so we had to shift our marketing strategy to focus only on buyers that did not need financing. The company that bought them was a large multinational corporation based in Dubai (with offices in India and other countries) that was interested in expanding into the United States. They own a variety of companies that include distributors, manufacturers, healthcare, financing, education, entertainment, auto dealers, and more. They are interested in purchasing other companies from us. This business was sold in May of 2022.
6. Food Transportation Company in North Carolina
This trucking business is located in the Charlotte area of North Carolina. They specialize in delivering chilled and frozen food products throughout the eastern half of the U.S. They also provide seasonal flatbed carrier services and a transportation brokerage business. They have a fleet of refrigerated trucks and the latest technology to allow them to provide the best logistics, fuel management, telematics, and more. We received multiple offers and were able to sell the business for the full asking price.
7. Geotechnical Engineering Business – Environmental Services & Building Inspections
This company, headquartered in the Western US, provides a wide range of services, including initial investigation, taking field soil samples, laboratory testing, seismic analysis, engineering analysis, and designs for foundations, street sections, and other structural components. They provide geotechnical, environmental, inspection and materials testing services to residential, commercial, and public clients. Long-term projects include the development of 50 subdivisions, two active retirement communities, and extensive work with elementary and middle schools, auto dealers, and churches. We found a buyer that was a private equity-backed engineering, environmental services, and architectural firm that had acquired several engineering firms which the seller was familiar with. The ability to ask the owners of these firms how they were treated post-sale gave the seller comfort in moving forward with the deal. They agreed to stay on after the sale to help with a transition for the clients and employees. This M&A deal was completed in May of 2022.
8. Wireless Internet Service Provider in Michigan
The company offers services for wireless internet access as well as internet phone services. They provide high-security private networks and high-speed fiber services. One of the buyers that we introduced quickly got along very well with the seller. We negotiated a price that they agreed on, and their great relationship continued as they helped transition the new owner of the business. The company is based in the Detroit, Michigan area.
9. IT Staffing Company in the St. Louis, Missouri area
IT Staffing business with long-term contracts with repeat customers. They have hundreds of clients, and we were able to bring a number of potential buyers. We received a full-price offer of about 3X net cash flow from an IT Staffing Company in New Jersey that had offices in Canada, Texas, India, and California. Acquiring this IT Staffing company based in Missouri allowed them to expand into the Midwest with staff and customers in place. They also liked the fact that the company they acquired had long-term relationships with their customers. In addition, the buyer’s company had more recruiting resources to expand on the relationships that the seller had. The sale was closed in April 2022.
10. Medical Equipment Services & Testing Company in New Jersey
This company services over 80 ambulatory surgical centers within the New Jersey and Philadelphia markets. They have recurring revenue with repeat clients. We had some potential buyers from within the healthcare industry however an individual buyer that was involved in a family real estate investment firm had been looking at a couple of companies that we had for sale. He liked this company the best and made a full-price offer. He wanted to own his own business separate from his family office investment firm, and he liked the recurring revenue business model. The buyer was able to pay the seller in full at the closing with SBA financing. The sale was closed in May of 2022.
11. Solar Installation & Roofing Company
The seller was referred to one of our Brokers by another seller that had a great experience with us. The owner of the business had worked for over 30 years and was ready to retire and move to Florida to spend more time fishing. We had a couple of offers and then received a full-price offer of over 3X cash flow from another roofing and solar installation company that was looking to expand via acquisitions. The buyer only needed to put down 5% of the purchase price with SBA financing because he was already in the business, and this was an add-on to his existing business. The seller received almost all of the purchase price at closing and, as per SBA financing rules, needed to hold a small note to ensure that they stay on after the sale for a transition period before he goes fishing.
To view more businesses that we have sold, please visit our businesses sold page. You can sort based on industry to locate companies that we’ve sold that are similar to your company.
Selling a profitable company in 2022?
If you own a company with an annual net income of $250,000 to $15 Million, now would be a good time to sell. We offer a confidential consultation. We’ll discuss your goals and find out more about your business. We’ll give you a possible asking price and see if this meets your needs. If so, we have no upfront fees. We’ll market your business confidentially and only charge a fee if we sell your company. Since we spend a lot of money on advertising, we are selective in taking on assignments where we feel we can meet the needs of the owner.
Award-Winning Business Brokers
We have been named one of the top business brokers in the United States by over eight different rating agencies. We can get more buyers than most because we rank on the first page of Google Searches for hundreds of different keywords. But we don’t stop there. We also advertise your business on websites that get over 1 million views per month. Keep in mind that before buyers get the details of your business, they’ll need to sign a confidentiality agreement and provide some information on their qualifications. We’ll qualify the buyers so that you are only introduced to the ones that are most likely to purchase your business.