Big Bucks for Little Beds
By Ian Mount

(FORTUNE Small Business) – When tech consultant Karen Adams met former parole officer Andrea Edmunds six years ago, it was supposed to be a job interview. But by the end of lunch, the two moms had decided to start PoshTots, an online retailer of high-end kids' furniture. (One signature item is a $47,000 Cinderella-style Fantasy Coach bed.) In January retailer BabyUniverse announced it was buying PoshTots for $14 million in cash and stock. Adams, 36, and Edmunds, 39, knew PoshTots needed its own warehouse, and neither had the expertise to run one. Jim Carroll, a managing director at Tucson M&A advisory firm Oracle Capital, notes the price is about twice PoshTots' annual sales, and double the multiple that BabyUniverse paid in September for another e-tailer. PoshTots' luxury positioning and $500 average order probably boosted its price, he says.

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.