Mid-Atlantic M&A Round-Up: Summer 2018 Edition
It’s been a busy summer for the attorneys of Offit Kurman’s Mergers & Acquisitions (M&A) Practice Group. In fact, as deal-making activity in the Mid-Atlantic region continues to skyrocket, the M&A team lead by corporate attorney Michael N. Mercurio, and consisting of Chair of the Business Transaction practice Group Glenn Solomon, Bankruptcy Practice Group Chair James M. Hoffman, Daniel Hofherr, Mike Petrizzo, Theodore Marasciulo, and Managing Partner of the firm Timothy Lynch has already set a new record for the number of transactions successfully closed for clients in a single year.
According to Michael N. Mercurio, the recent surge in M&A is the result of a rare combination of systemic circumstances that benefit sellers, including those in the mid-market: the economy is strong, valuations are high across the board, and many companies throughout the U.S. are looking to grow through strategic regional acquisitions. At the same time, members of the baby boomer generation are starting to retire en masse, creating more opportunities—and stoking competition over those opportunities—for buyers.
Among the communities Offit Kurman serves, these market conditions have been particularly fruitful for technology companies, health care organizations, and government contractors. Take a look at a few of the deals the firm’s attorneys have recently helped close:
Arnold Packaging Company Buys World Class Packaging
Mr. Mercurio, together with Offit Kurman attorneys James M. Hoffman and Daniel Hofherr, represented Arnold Packaging, a premier packaging provider in North America, in its acquisition of regional competitor World Class Packaging. With World Class Packaging’s client base of more than 200 customers, the acquisition brings with it a greater market share across the mid-Atlantic, as well as six more employees—increasing the size of the Arnold Packaging team by 11%. Read more.
Edge Space Systems Sells to Lentech
Mr. Mercurio, Mr. Hofherr, and fellow Offit Kurman attorney Mike Petrizzo represented Edge Space Systems, a woman-owned aerospace engineering company in Maryland, in its sale to Lentech, Inc. Lentech is a privately owned Small Disadvantaged Business (SDB) that provides customers with reliable, scalable, responsive secure application and data center solutions and Enterprise IT services. Many of Lentech’s clients are federal and state government agencies. The company has offices in Albuquerque, NM, Greenbelt, MD, and Reston, VA. Read more.
Minnick’s Merges with Ecobeco
Led by Mr. Mercurio, the firm represented Minnick’s, Inc. in its merger with Ecobeco. Minnick’s, a family-owned HVAC, plumbing, and insulation company, has served customers in Laurel, Maryland and beyond for 63 years. Ecobeco, founded in 2008, has completed over 1,000 home design remodeling projects, as well as over 50,000 energy efficiency audits and check-ups. Following their merger, the two entities now operate as a single company under the name Minnick’s Ecobeco LLC. Read more.
United Support Services Sells to CACI
Offit Kurman’s attorneys, including Mr. Mercurio, worked alongside sellers CSMI, LLC and VRC Corporation to transfer ownership of Virginia-based United Support Services (USS), LLC to CACI, Inc. through an equity purchase agreement. Founded as a turn-key integrated product support and logistics provider, USS successfully fielded and sustained more than $1 billion in technologies and technical services for original equipment manufacturers and other defense technology customers. Prior to the sale, U.S. veterans comprised 98% of the company’s employees. Read more.
Applied Defense Solutions Sells to L3 Technologies
Led by Offit Kurman Managing Principal and President Timothy Lynch and business attorney Theodore Marasciulo, the firm represented government contractor Applied Defense Solutions, Inc. in its sale to L3 Technologies, Inc., one of the nation’s largest government contractors. Prior to the transaction, Applied Defense Solutions worked with numerous government agencies in the fields of aerospace and defense. The company now operates under the name L3 ADS and is at work supporting several upcoming NASA, Department of Defense, and commercial satellite and constellation launches. Read more.
VetsAmerica Sells to Veteran Enterprise Solutions
Veteran Enterprise Solutions, Inc. (VESI), an information technology solutions provider, acquired VetsAmerica Business Consulting Inc., an IT firm based in South Carolina. Mr. Mercurio and his Offit Kurman colleague represented VetsAmerica throughout the transaction. Both organizations are certified Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) that have contracted with numerous federal government agencies. Read more.
Active Physical Therapy Services Buys Rehabilitation Services of Greater Washington
Active Physical Therapy Services, a physical therapy and rehabilitation provider with seven clinics in Maryland, acquired Rehabilitation Services of Greater Washington, and gained three more locations as a result. Mr. Mercurio and Mr. Hofherr worked with Offit Kurman attorney Glenn Solomon to represent Active Physical Therapy during the acquisition. Read more.
If you are considering selling your business, talk to an experienced M&A advisor. In a hot market, says Mr. Mercurio, no seller should settle for a deal before maximizing the potential return. Nonetheless, he is advising clients act quickly and exit now, if possible—because it’s only a matter of time before the market cools down again.
“Right now, company valuations are high, and they won’t stay high for long,” he said. “Business owners have a small window to take advantage of the higher valuations before we see a downturn in the M&A market. If you are a business owner thinking of selling, now is an ideal time to get your organization prepared for sale.”
More news and information about Offit Kurman’s M&A Practice Group can be found here.
Questiosn about our M&A practice, contact us here.
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