Capital from financial institutions, strategic buyers, private equity firms and individuals continues to flow into the wholesale distribution industry. This influx has led to strong valuations for publicly traded distributors and solid transaction multiples for operators who sold businesses. In our opinion, two main fundamental drivers lead this charge – the attractiveness of the distribution industry and the current availability of capital.

The optics and photonics industry has been important to Central Florida ever since efforts by state leaders to expand Florida’s economy beyond its dependence on tourism and citrus in the 1980s. Initiatives by visionaries such as Bill Schwartz led to the founding of Florida’s laser industry and the 1986 establishment of the Center for Research in Electro-Optics and Lasers (CREOL) in Orlando.

“The Constitution guarantees you the pursuit of happiness… but doesn’t guarantee to finance the chase.” 

Our recent survey of Florida business revealed that many owners did not know the value of their businesses. This fact illustrates one of the major issues owners face in private companies – measuring performance.