The economic environment in the United States has been turbulent in 2022. The first two quarters of the year were a technical recession with negative GDP growth followed by a third quarter with early figures reporting a modest increase (https://tradingeconomics.com/united-states/gdp-growth). The prime interest rate has doubled since the start of the year (https://www.jpmorganchase.com/about/our-business/historical-prime-rate) through a proactive effort by the Federal Reserve to control the worst inflation the nation has experienced in forty years. However, transactional activity at IBA has remained robust with the firm completing numerous sales of privately held companies and family-owned businesses in the Pacific Northwest. This strong activity by the region’s oldest business brokerage firm can be sourced to three elements. First, a significant majority of IBA’s sale side engagements are to facilitate retirement sales involving mature, profitable companies with excellent personnel, systems, and infrastructure. IBA is commonly recognized as the most selective business brokerage firm in the region. Our time tested forty-seven-year-old 100% paid on performance business model does not work, if we are not completing transactions. More than ever, business owners should think twice before paying retainers or administrative fees to business brokers who have a probability of over promising and underdelivering. Second, entrepreneurs, private equity firms, and corporations correctly have identified unique opportunities exist presently in the marketplace that may not be available for long. If you are interested in some of the elements that make this presently a buyer’s market, the following previously published article on the IBA blog may be of interest (https://ibainc.com/blog/gregory-kovsky/why-business-ownership-should-be-explored-as-a-career-option-in-an-inflationary-low-performing-economy/). Third, IBA has a market leading level of knowledge, experience, and ability on our business brokerage team. Anyone can sell lemonade on a hot day to a group of thirsty tourists. The present economic environment requires a professional intermediary firm with experience. I, as the President & CEO of IBA, have personally navigated the dot.com recession (March – November 2001), Great Recession (December 2007 – June 2009), and COVID-19 Recession (February – April 2020). Few firms and brokers in the region have equal experience.
Many deals fail, if relevant knowledge is not possessed. IBA has a corporate culture that emphasizes mentorship & education. A couple of weeks ago we brought in Live Oak Bank, the nation’s number one SBA lender (https://www.sbalenders.com/banks/live-oak/) to exclusively review with us present lending market conditions and government underwriting modifications for the new government fiscal year which started October 1. One of a business brokers primary responsibilities is to find the money to get the deal done. In addition, two of our brokers, Jeffrey Bryan and Seth Rudin, also received advanced real estate valuation training through CCIM recently, a top tier commercial real estate association IBA supports on multiple levels (https://www.ccimconnect.com/ccimwashington/home). Finally, knowledge & experience are only valuable, if the ability exists to employ the assets and execute. No one in the Pacific Northwest has successfully closed more deals than IBA’s 4200+.
The following is a sample of the transactions IBA has successfully completed over the months that saw the Mariners roll through the most successful season in years and the Seahawks take flight to the top of the NFC West to provide an idea of the spectrum of types of companies sold by the firm.
US Electric (https://uselectric.com/_) – Marine Electrical Contractor Specializing in Fishing & Cargo Vessels
Five Star Plumbing (https://fivestarplumbingspokane.com/) – Residential & Commercial Plumbing Contractor
Frost Engineering (http://frostnw.com/_) – Energy Sector Engineering & Product Solutions
Madeson Management (https://madesonmanagement.com/) – Investment Property Management
SynTurf (https://artificialgrassandlandscaping.com/) – Artificial Grass Sales & Installation
Seattle Sustainable Landscapes (https://www.seattlesustainablelandscapes.com/) – Landscape Construction & Renovation
Mt. Baker Roofing (https://www.mtbakerroofing.com/) – Whatcom & Skagit Counties Dominant Residential Roofing Company
Renovation Resolutions (https://www.renovationresolutions.com/) – Kitchen & Bathroom Remodeling
Elger Bay Grocery & Gifts (https://whidbeycamanoislands.com/activities/elger-bay-grocery-and-gifts/) – Gas Station, Convenience Store, and Restaurant
Vancouver Woodworks (https://vancouverwoodworks.com/) Wood Furniture Retail
Lake Chelan Sports (https://www.lakechelansports.com/) Outdoor & Athletic Apparel
Cozy’s Roadhouse (https://cozys.shrimpshack.us/) Iconic Restaurant and Pub
Wisconsin Burger (https://wisconsinburger.com/) Community Favorite Restaurant
Midland Automotive (https://midlandautomotive.net/) Community Favorite Auto Repair
E Z Chair Barber Shop (https://www.facebook.com/ezchairbarbershop/) Community Favorite Service Provider
Additional information on the industries served by IBA as a business brokerage firm can be found on this page of our website (https://ibainc.com/industries-served/).
Strong market activity is anticipated to continue at IBA for the remainder of 2022 and into Q1 2023 with transactions in escrow pending sale involving manufacturing, construction, professional service, medical, hospitality, beauty, industrial, retail, and transportation sector companies.
If you are interested in selling or purchasing a company in 2023, we would welcome the opportunity to provide you with an overview of our services. All conversations with IBA are held in strict confidence.
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”.