Expenditure on new equipment in 2023 has slowed in the United States (https://www.supplychain247.com/article/equipment_leasing_outlook_for_rest_of_year_lowered_after_slow_start_to_2023/procurement). This combined with the continued inflationary environment in the American economy (https://www.nbcnews.com/business/economy/inflation-rate-march-2023-is-it-better-or-worse-economy-rcna79150) has resulted in caution in the manufacturing, construction, and industrial segments related to investment in new equipment. Currently a preference exists, when possible, to explore repair rather than replacement of equipment.
This market dynamic has created opportunity for revenue and profit growth for companies that supply replacement parts and service equipment, especially for businesses that have excess inventory purchased at market values no longer available from suppliers. It has also generated enhanced demand in the M&A marketplace for companies selling replacement parts and servicing equipment resulting in quality sales opportunities for entrepreneurs wishing to sell established, profitable businesses in that space to facilitate retirement.
IBA, as the oldest business brokerage firm in the Pacific Northwest, has experienced numerous economic cycles in its nearly fifty-year history. We are aware of historically when the best times are to sell and purchase certain types of privately held companies. This is no different than industry specialists on Wall Street being able to identify when a good time exists to sell shares and accumulate positions for their clients. IBA’s large, experienced, knowledgeable team of M&A intermediaries includes people who have been selling companies for numerous decades, previously worked in the investment industry, and multiple MBA’s. We welcome the opportunity to have strategic planning conversations with business owners contemplating exit strategies in the next six months to five years. There is no substitute for knowledge, experience, and ability in a professional resource.
The following are some examples of industrial parts sales, distribution, and service companies IBA has sold:
Construction Parts (https://constructionpartsllc.com/) – Construction Parts, at time of sale in 2023, was a nearly twenty-year-old provider of tooth system technology for the surface mining and infrastructure development markets. Equipment supported by the business included carriers, excavators, feller bunchers, loggers, loaders, pavers, pipelayers, track loaders, bulldozers, skid steers, backhoes, asphalt grinders, street sweepers, forestry mulchers, compactors, and related machinery. The business also offered a full range of blade products construction, road maintenance, snow removal, and mining. Products sold by the business included company branded products, Balckcat®, Esco®, Kennametal®, Caterpillar®, Hensley®, and other customer preferred components.
Generic Parts Service (https://genericparts.com/) – Generic Parts Service is a distributor of high-quality after-market parts. GPS originates, assembles, and distributes a full line of replacement parts for manual pallet jacks and wear parts for electric lift trucks (walkies, riders, and reach trucks). It specializes in machined items and polyurethane wheels.
Mobile Equipment Systems (https://www.mobileequip.com/) – Mobile hydraulic equipment component sales and service company with an extensive public & private sector account base.
Pirtek (https://www.pirtekusa.com/) Franchised hydraulic & industrial hose replacement and repair business with an internationally recognized brand for quality & superior customer service.
Northwest Biomedical Associates (http://nwbiomed.com/) – Medical equipment repair and regulatory compliance service company with OEM referrals and support.
If you are interested in selling an industrial parts distribution, sales, or service company in 2023 or the future, the knowledgeable, experienced, highly skilled team of business brokers at IBA specializing in transactions for this type of company would welcome the opportunity to meet with you to learn about your business, exit strategy objectives, and provide an overview of our client services. All conversations with IBA are held in strict confidence. 100% of IBA’s fees are performance based and payable only if we successfully complete the sale of your business.
IBA, the Pacific Northwest’s premier business brokerage firm since 1975, is available as an information resource to the media, business brokerage, mergers & acquisitions, real estate, legal, and accounting 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”.