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Metals and Components, Inc.
Mike Prado (pictured second from left) recently acquired Metals and Components, Inc. (MAC) from Mauricio and Gian Montanari (pictured at far right). MAC is a master distributor of stainless and alloy flanges, fittings, piping and stub ends. It has served the oil and gas, marine, nuclear, and refining industries since 1997 in the U.S., Venezuelan and Mexican markets. The company's products are specialty components demanded by these industries for hostile environment applications where dependability and resistance to heat, pressure, and corrosion are required.
Mike also owns Hurricane Lake and Fountain, Inc. and Hurricane Trucking Co. and will move and operate MAC out of his corporate facilities in Pasadena, TX. Mauricio and Gian will now concentrate on a business they recently started, Montanari Food Factory, which produces and distributes pasta and sauce products.
Ron Consolino listed the business and sold it.
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Marketability vs. Valuation
 Takeaway: Just because a business makes money doesn't mean it can be sold.
Value is certainly something a business owner should be concerned about when they are thinking about their retirement and selling their business. But marketability is more important!
Here is a harsh reality. You can have a business that makes good money and is a high performer but is totally unable to be sold. On the continuum of factors that drive value, negative manifestations of these value drivers can act like an on/off switch to the potential of being sold. Here is how some of those value drivers manifest negatively.
This article was written by The Podolny Group: Read the entire article here
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Ask the Experts
Question: What business types are selling? In other words, what's hot?
Answer: The following information has been summarized from the most recent IBBA market research report in October 2012:
Hot industries varied by business size. In the Main Street market for businesses valued at $1MM or less, consumer goods/retail, business services, personal services, and restaurants topped the number of closed transactions. For businesses valued between $1MM-$2MM, manufacturing (47%), health care and biotech (18%), and construction/engineering (12%) were trending. In the lower middle market, in the $2MM-$5MM sector, wholesale distribution (29%), business services (21%), and construction/engineering (21%) accounted for most of the businesses sold. Businesses of $5MM or more followed the same trend with manufacturing at 23% and wholesale distribution at 15%.
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