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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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.