Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions). Our first question comes from Vernon Plack with BB&T Capital Markets. Please say your question.
Vernon Plack - BB&T Capital Markets
Thank you and good morning David. I wanted to see perhaps you could provide a little more color on your pipeline in particular as at least the way that we are looking at it, it appears that -- I believe, you have made an investment since perhaps October. Can you provide some color just in terms of what your pipeline look like, what?
David Gladstone
Sure. I'll be glad to. The pipeline is steady, it's filling up, here is what's going on, just like in the home mortgage place, the home buyers are sitting on the sidelines and not willing to sell at these low prices, because they want to get a good price for their house. And the same thing is happen to some of the sellers of businesses. They are sitting on the sidelines and saying, my buddy down the street got X dollars for his house or X dollars for his business, he got 10 times EBITDA, I want the same amount or I am not going to sell.
As time goes on people get a little weary of that and eventually they sell their house, and in our case they sell their business. We've got a number of deals perking and working now and I am hopeful that we can have some announcements this quarter.
But two deals last quarter was good quarter for us, if we do tune again this quarter even if we do at the end of the quarter it will be a good quarter as well. But the number of businesses for sale is out there, but the prices are still relatively high and we just don't want to leverage these companies especially in a slowdown.
Vernon Plack - BB&T Capital Markets
And have you seen prices come down to any extent or what is your thought on pricing in some of these businesses?
David Gladstone
Now, there is two kinds of businesses that we look at, one with very strong growth rate those were all chased by most of the LBO funds and they are chasing them because they can buy them even at high price s at eight or ten times EBITDA and then turn around in three years hopefully and double the payouts and double the earnings and then sell out. They need a lot of equity in those and they don’t get any income to pick up while they are waiting.
- To read the full transcript on Seeking Alpha, click here »
