In the M&A market, seeking out strong companies almost always begins with identifying those owners with impeccable leadership credentials. And when it came to inquiring about the availability of Commonwealth Digital Office Solutions, UBEO Business Services CEO Jim Sheffield knew he couldn’t go wrong with Mike Sarelson.
UBEO, the Austin, Texas-based acquisition wizard was back in action this week, putting the finishing touches on its year-long quest to secure Commonwealth of Sterling, Virginia, a leader in the Washington, D.C. market. It was the second significant Mid-Atlantic dealer obtained in the past three years, joining Centric Business Systems, a $55 million performer in Owings Mill, Maryland.
Like Commonwealth, Centric boasted one of the industry’s leading executives, Rick Bastinelli, who retired following the end of 2023. Now, as Centric and Commonwealth eventually work toward creating a D.C.-area powerhouse, Sarelson will bring his decades of experience to the process.
“Mike is a prince, one of the absolute premier people in our industry,” Sheffield said of the longtime Commonwealth owner. “We’ve been fortunate to add very strong leaders in these acquisitions, and Mike is no exception.”
While Sarelson may follow Bastinelli’s lead and retire after a certain period, Sheffield is in no rush to see him leave. “Mike is welcome as long as he wants to stay,” Sheffield added.
Commonwealth, which has revenues north of $20 million, has earned a stellar reputation for its cutting-edge technology solutions and exceptional customer service over the years. The dealer boasts an effective production print platform, and the acquisition aligns seamlessly with UBEO’s mission to provide innovative, cost-effective and sustainable office solutions to businesses of all sizes.
“Joining forces with UBEO Business Services presents an incredible opportunity for us to enhance the value we offer to our customers,” Sarelson said. “UBEO’s extensive resources and industry expertise will enable us to provide even greater support and innovation to help businesses thrive in today’s rapidly evolving digital landscape.”
2024 hasn’t provided the most optimal economic landscape for conducting deals. The increase in interest rates, Sheffield noted, has put a drag on activity, as assets tend to go down in value with spikes of this magnitude. But he anticipates rates will recede somewhat either toward the end of this year or the start of 2025.
Regardless, UBEO will be a player, and Sheffield noted the company is looking at prospects in California, Colorado, Nevada, Texas and Louisiana. Contiguous operations are preferred, but he wouldn’t rule out adding anchor companies in markets where UBEO does not have a presence, which (like Centric) could see future acquisitions that would strengthen that holding.
“We want to stay geographically within ourselves, so when we get into South Carolina, we can get into Georgia,” he said. “We want to be able to maintain our high level of support for our customers. We’re also looking at tuck-in deals.
“This one, obviously, was quite a bit bigger, a fine company with a great owner. We’re super excited about it.”
