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  • IBA Business Activity Report – Spring 2022

    May 3, 2022

    As the President & CEO of IBA, the Pacific Northwest’s oldest business brokerage firm, and a proud resident of the region for all, but eight years of my life, I am happy to report that throughout the snow of late December and early January (https://sdotblog.seattle.gov/2022/01/06/winter-storm-recap/), abnormally dry month of  February (https://www.youtube.com/watch?v=Bqe0Zt4F_rM), record rainfalls in March, https://www.foxweather.com/weather-news/record-breaking-rainfall-brings-flooding-to-pacific-northwest, and sunshine of April, IBA’s knowledgeable, experienced, highly skilled team of business brokerage professionals have taken up the postman’s creed of “Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds” on behalf of our sell side entrepreneurial clients with exceptional achievement in terms of completing transactions, placing deals into escrow for completion in Q2, and bringing new quality companies to market for buyers to evaluate as acquisition opportunities.

    The following is an overview of some of the industries served and businesses sold by IBA in the last couple of months:

    Healthcare

    IBA’s healthcare sector transaction team recently completed two transactions, the sale of Northwest Supply, a company with an innovative business model where they took possession of medical and scientific equipment from hospitals, clinics, and educational entities and resold the items splitting the proceeds with the originating party, and the sale of Rainbow Natural Remedies, a beloved naturopathic & herbal apothecary shop in Seattle.  Business brokerage activity in this space remains robust for our team with current projects on the market ranging from a medical spa cash flowing over $700,000 to ownership to a naturopathic/acupuncture practice with an established, numerous year patient base.

    Cannabis

    IBA is commonly recognized as a market leading business brokerage and commercial real estate firm for the cannabis industry in Washington & Oregon.  Current projects include single and multiple location cannabis retail stores, processors of marijuana into consumer friendly products, and greenhouse and outside grow facilities.  We are happy to serve as a resource for entrepreneurs in this industry seeking sale, financing, legal, or accounting support.   The direction in the industry is gravitating from family businesses to corporate run operations where mergers & acquisitions level knowledge, experience, and ability are needed to successfully navigate transactions from valuation to closing employing best practices while maintaining an environment of confidentiality.   Few business brokerage firms in the United States possess the ability of IBA’s cannabis industry transaction team to facilitate deals ranging from high six to eight figures in value.  Pending state approval IBA will complete the sale of one $18 million plus revenue company in the cannabis industry in the second half of the year.  We are also happy to support the Washington Canna Business Association with sponsorship at their golf tournament (https://www.wacannabusiness.org/index.php?option=com_jevents&task=icalrepeat.detail&evid=80&Itemid=115&year=2022&month=06&day=13&title=4th-annual-waca-bowl-in-one-golf-tournament-a-spring-meeting&uid=9ac3beb2e85d4949f76b6aaa52b85a80) June 13 in Walla Walla Washington. We hope to see you out in wine country swinging your clubs and having fun.

    Manufacturing

    An emerging segment in manufacturing are businesses that employ a direct to consumer e-commerce marketing approach for selling their products.  IBA was honored to represent the ownership of Tom Bihn, a high-end manufacturer of backpacks, duffle bags, and business attaches based in Seattle, earlier in the year in the sale of the company.  A Certified B Corporation, the business exhibited the gold standard in terms of best practices and corporate culture, evidence that business can be done profitably correct with ample consideration for suppliers, employees, customers, and the environment.  IBA’s manufacturing transaction team is actively engaged in a number of deals, just brought an excellent winery to market, and has a strong group of companies being staged for buyer assessment.  IBA is also strongly engaged with the manufacturing industry as a resource in both formal and informal environments.  We are happy to be the corporate sponsor of the Center for Advanced Manufacturing Puget Sound’s social mixer on June 23, 2022 at Heritage Distilling (https://www.eventbrite.com/e/june-23rd-mixer-tickets-313971516257).  If you are a manufacturer looking for a quality trade organization, CAMPS (https://www.camps-us.com/) is one of the best in the region.

    Construction

    IBA has a long history of successfully representing owners of construction industry companies in the sale of their businesses.  We recently completed the sales of Plastics for Lighting, a recognized distributor of residential & commercial lighting solutions, and Chinook Plumbing & Heating, a 30+ year old union commercial & residential contractor.  Deals presently in escrow pending sale include a roofing company with revenues exceeding $20 million a year, a company with a fleet of dump trucks, an utility construction service provider, and a design/installation/service company in the energy sector.  New companies on the market include one of the Inland Empire’s preferred plumbers, a commercial painting contractor with a strong public sector customer base, a kitchen & bath remodeling company with seven figure annual cash flow to ownership, and a construction equipment rental business with a client base utilizing products for weeks to months at a time.  A firm that emphasizes sharing our knowledge and experience with membership of trade organizations, IBA is a proud member of the Master Builders Association of King & Snohomish Counties (https://www.mbaks.com/).  It is our hope that we will see you out supporting this excellent organization along with us at one of their golf tournaments this summer.  The first one is July 26, https://www.mbaks.com/Meetings/Meeting.aspx?ID=9285, so plenty of opportunity exists to work the kinks out of your game between now and then.

    Retail

    As highlighted in a recent blog article, the retail sector is seeing strong sales and profitability now that the COVID-19 pandemic is receding in our collective rearview mirrors.  Buyers who identified the opportunities in the present and future with successful operation of a retail business emphasizing superior customer service, quality products, and competitive pricing have completed numerous acquisitions facilitated by IBA in recent months, including the purchase of Performance Footwear, Celine Pastisserie, Play It Again Sports – Woodinville, and Ravena Gardens.  Deals in escrow with IBA scheduled for completion this spring include a furniture retailer beloved for generations and a high traffic gas station/convenience store/restaurant with limited competition in a sought-after destination for living and vacations.  New companies that have recently entered the market after filing their 2021 tax returns in the retail sector include several multiple location chains with million dollar plus EBITDA (one specializing in fishing, hunting, and outdoor products and the other merchandise for tourists in a high traffic venue), a sporting goods store, and a lifestyle/fitness apparel store with limited competition.

    The above are only five of the industries served by IBA as a business brokerage firm, a complete list of the business sectors served can be found on this page of our website (https://ibainc.com/industries-served/).

    IBA recognizes that we are not the only option for quality business brokerage services in the Pacific Northwest.  However, we believe any entrepreneur interested in selling a privately held company or family business would be foolish not to include us in their interview process when selecting a professional intermediary, just as it would be unwise for a buyer looking for an acquisition not to include IBA’s exclusive inventory in their opportunity review process.  All information provided to IBA is always held in strict confidence.  On the seller side, 100% of our fees are payable on performance when we complete the project.

    IBA, the Pacific Northwest’s premier business brokerage firm since 1975, is available as an information resource to the media, business brokerage, mergers & acquisitions, and real estate  communities 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”.

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