Happy Friday and thanks to the 58 new subscribers who joined this last week. We’re the only news source tracking lower middle market M&A. Our goal is to keep you up to date on the latest information/transactions in the market and highlight market participants that are doing interesting things in the space.

This Week’s Feature

This week we’re putting a spotlight on the hot world of e-commerce M&A and profiling Hahnbeck, a London-based corporate finance firm focused on e-commerce. Hahnbeck connects buyers and sellers of e-commerce and technology businesses. The firm is led by Director, Taliesen Hollywood, with an experienced team spread across the UK and North America. Originally focused on education in the M&A space, in 2019 the firm converted to a full-service M&A consultancy and has become one of the leading e-commerce M&A firms in all of Europe.

Given that it’s 2021, you’ve probably heard of a little business called Amazon and the world of FBA (Fulfilled by Amazon). FBA businesses are offered by a third-party seller but shipped to you from an Amazon Fulfillment Center. With the recent shift from brick and mortar to online accelerating, FBA businesses have seen a drastic increase in investor interest, and Hahnbeck knows this world intimately. In fact, according to this comprehensive Amazon FBA Acquirers list that was published by Hahnbeck, there are now over 70 FBA aggregators that have raised around $10B in disclosed funding (debt + equity). Many have heard of Thrasio, who was one of the first and now largest acquirers of Amazon FBA brands, but many have since followed suit. It’s only a matter of time before we see an FBA aggregator go public.

We like Hahnbeck’s approach to providing a premium level of service while maintaining a commission structure that is the lowest in the industry. They’re able to do this by hiring experienced M&A professionals while operating on a distributed basis and with low office overhead. The lower-middle market M&A space is not known for its transparency, with brokers keeping “secret” lists of buyers, so as to convince business owners that they are the sole conduit through which these buyers can be reached. Hahnbeck bucks this trend by providing leading insights into the industry and comprehensive lists of active players on both sides of the FBA marketplace.

Although Hahnbeck specializes in FBA and e-commerce M&A, the firm has clients in the technology and e-commerce adjacent sectors. The firm has e-commerce clients ranging from $2m to $200m and provides a bespoke, tailored service to each client, targeting strategic buyers and PE firms specific to each client’s business. Hahnbeck also has the deepest understanding of the Amazon Aggregator space in the industry.

You can learn more about Hahnbeck and the world of Amazon FBA Aggregators by visiting the following links:

• Hahnbeck website Link

• List of Amazon FBA aggregators Link

• Amazon Aggregators’ Fight for Ascendancy (Financial Times )Link

You can reach out to Taliesen and Hahnbeck through th@hahnbeck.com

This Week’s LMM Activity

H.I.G. Capital was active:

• Invests in streetwear and digitally native jewelry and accessories co., The Gld Shop Link

• Acquires pharmaceutical provider, Aspire Pharma Link

Granite Creek Capital Partners and Equivu Capital invest in heavy equipment manufacturer and distributor, C&C Manufacturing Link

Miramar Equity Partners-backed TopSide Marinas acquires two marinas in Oklahoma and Texas Link

Tech-24, backed by HCI Equity Partners, acquires HVAC and food service equipment installer and maintenance provider, Yukon Refrigeration Link

HCI Equity Partners sells circuit board manufacturer, Summit Interconnect, to Lindsay Goldberg Link

Seacoast Capital and Galaxi Group invest in CityLeaf & Medallion Landscape Link

WILsquare Capital acquires manufacturer and distributor of heating and air movement solutions, Rock Energy Systems Link

East Los Capital invests in cloud computing services pioneer, Caylent Link

Fort Point Capital invests in telecom infrastructure company, CellSite Solutions Link

Susquehanna Private Capital invests in language technology and localization solutions provider, thebigword Group Link

Essex Bay Capital makes first platform investment in municipal and school district SaaS company, Munetrix Link

HKW sells air filter company, Protect Plus Air, to Freudenberg Filtration Technologies Link

Falfurrias Capital Partners acquires leading honey brand, Local Hive Honey Link

Blue Sea Capital-backed, Beacon Oral Specialists, continues dental practice roll-up with the acquisition of Maryland Oral Surgery Associates Link

Patient engagement solutions provider, Health Perspective Group, receives investment from 424 Capital Link

1315 Capital and MoonSail Capital acquire employer-focused healthcare cost containment company, Homestead Link

NCK Capital sells cosmetology and beauty school, The Ogle School, to RLJ Equity Partners Link

Fundraising

Concentric closes inaugural fund with $266M in commitments from the SBA Link

Other Stuff

Monroe Capital closes $505M CLO secured by a portfolio of middle-market senior secured loans Link

An unprecedented year for private equity is spilling into the middle market Link

What’s driving food & beverage M&A activity? Link

More sponsors are adding minority investments to their strategies as competition for deals continues to rise and founders exert more power in negotiations Link

Bridgepoint’s Tech M&A Q3 update Link