Applauding Performance in Business Acquisition Financing

Feb 26, 2019

The February 12 issue of the Puget Sound Business Journal featured a special report on Banking & Financing.  One component of the report ranked the top 30 lending institutions in the Seattle District of the Small Business Administration by their total loan volume for 7(A) SBA backed loans.  7(A) loans are commonly used by banks to finance business acquisitions in the middle & main street marketplaces.

The ranking confirmed activity and achievement in the Pacific Northwest that IBA was aware of and contributed to as the oldest and most active business brokerage firm in the region.  The top ranked bank in the Seattle district for the fiscal year ending September 30, 2018 was Key Bank with $61.95 million in loan volume.  The quality professionals at Key Bank working on business acquisition financing should be recognized for their market leading performance last year. Bravo.  IBA facilitated numerous transactions collaboratively with Key Bank that contributed significantly to last year’s loan volume and currently has over $10,000,000 in loans funded or in the pipeline for Key Bank financed deals this year.  Jennifer Ringenbach, Carrie Callaway Cardy, Richard Schmaltz, Jane Pekasky, Keith Hegge, and Greg Williams were and are welcome team members in any transaction by IBA.

One of the individual bankers, Lisa Forrest, IBA mergers & acquisitions intermediaries have enjoyed working with collaboratively on transactions for decades spearheaded Live Oak Banking Company’s climb up the rankings to the number three spot with an almost $19 million increase in funding activity in the Seattle District this year from 2017’s $23,240,000 in financed deals to 2018’s $41,990,000.  It was IBA’s pleasure to contribute to this strong performance, most recently with the collaborative sale of an electronic component distribution company featuring Siemen’s products in November 2018.

Banner Bank, another favored financing partner at IBA and #2 in the Seattle District in terms of approved loans and #9 in total loan volume, also saw a climb in its lending activity in the business acquisition arena increasing its loan volume over 12% in 2018 vs. 2017.  The SBA team at Banner Bank is exceptional in terms of knowledge, experience, and professional skill set.  Jacque Coyan, Robin Dode, Walter McLaughlin, Scott Cordell, and Christine Chi are welcome contributors to transaction financing in IBA facilitated transactions.  IBA & Banner Bank will be co-hosting a free, morning seminar March 13 at the Master Builder’s Association on “Best Practices for Transitioning Ownership of a Family Owned Business”.  Anyone entrepreneurs interested in learning about the business sale process from two of the oldest companies supporting the small business community in the Pacific Northwest are welcome to attend.  Seats are currently available, but will likely not be available the day of the event. Additional information is available on the Seminars & Events page of IBA’s website:  ibainc.com/seminars-and-events/

Rounding out the top 10 of the rankings was Umpqua Bank, another favored acquisition financing partner at IBA.   Andy Pletz & Mike Esfeld provide their business buyer clients with superior knowledge, experience, and customer service throughout the business acquisition process.  One of the components of Umpqua Bank’s over $25 million in 7(A) funding last year was a well established manufacturing company IBA facilitated the sale of in Spokane in 2018.   Mike Esfeld’s diligent, dedicated work on financing for that transaction would be appreciated by anyone buying a business.

The second ten group of banks in the rankings is also filled with preferred collaborative partners of IBA for financing business acquisitions.  Columbia Bank, #5 in the Seattle district in terms of approved loans and #14 with volume of over $18 million in transaction financing in 2018, is commonly referred by IBA to parties seeking 7(A) loans to acquire businesses.  I am excited to participate in a panel discussion about “Exit Strategies to Maximize Business Value” hosted by Columbia Bank on April 17, 2019 at Maggiano’s Little Italy in Bellevue along with B2B CFO Partner, Robert Burger, and attorney, Rodger Kohn of Tousley, Brain, & Stephens.  Additional details on this educational event presented by professionals with years of relevant experience are available by contacting Megan Walker at walker@columbiabank.com.  Donna Himpler, Lindsey Bolland, Mark Brothers, and Jon Callavo are always a great place to start to learn about Columbia Bank and the acquisition financing products it offers its customers.

IBA was also pleased by the performance of Northwest Bank (#19 with over $16 million in transaction financing), HomeStreet Bank (#20 with over $15 million), and SaviBank (#21 with over $12 million) in 2018.  Special recognition should go to Michael Roozen of SaviBank for the excellent job he did facilitating financing of a multiple location pizza business in an IBA facilitated transaction this month.  Unfortunately, SaviBank recently lost a “Rock Star” of a SBA banker when Cathy Griffith left the bank to take a government job with the Small Business Administration.  She is already enhancing the performance of that organization in the Puget Sound.   Good recognition of talent by the United States government.

Performance in business acquisition financing is documented for lending institutions by the number of loans approved and the total value of dollars employed to facilitate transfers of business ownership.  Achievement is business brokerage is documented by successfully facilitated transactions.  IBA has sold more businesses than any other business brokerage firm in Washington. “Win-Win” transactions have been facilitated for our clients from Aberdeen to Spokane and Bellingham to Vancouver.   In 2018, we successfully sold businesses for 6, 7, & 8 figures.  If you are considering a sale of a business in 2019, we would welcome the opportunity to provide you with an overview of our client services.  If you are looking to acquire a business in 2019 and need a referral to a banker who can “get the job done”, we are happy to introduce you to the “best of the best” business bankers serving this region.

IBA, the Pacific Northwest’s premier business brokerage firm since 1975, is available as an information resource to the media, business brokerage, and mergers & acquisitions community on subjects relevant to the purchase & sale of privately held companies and family owned businesses.  IBA is recognized as one of the best business brokerage firms in the nation based on its long track record of successfully negotiating “win-win” business sale transactions in environments of full disclosure employing “best practices”.