Posts by Frances Brunelle

How Smart Manufacturers are Closing the Skills Gap – Apprenticeship

apprenticeship

Last year, there was a net gain of 284,000 manufacturing jobs – the most we have seen since 1997. Manufacturers Alliance for Productivity and Innovation (MAPI) estimates that production will continue to grow at a rate over 2% through 2021. The average starting salaries have risen, but manufacturers still find it difficult to source adequate qualified entry-level talent. In a recent white paper, Deloitte singled out the manufacturing talent shortage as the single biggest threat to growth:

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101 Questions You Must Ask Before Buying A Manufacturing Company

              As an M & A professional selling exclusively within the manufacturing sectors, I’ve compiled a list of questions that every buyer should be asking before acquiring a manufacturing company. On The Company History How and why did the company start? What were the major milestones? How much has it grown from inception until now? Who are the shareholders? Are they all on board with the sale? On Strategy & Market Potential What are the key risks to this business? What are the major…

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How Do Rising Interest Rates Affect The Sale Of Small Manufacturing Companies?

Rising Interest Rates

Considering retirement soon? At the start of 2019 many business owners are examining if this is a good time to put their manufacturing business on the market and head towards retirement. With interest rates rising four times in 2018, it’s wise to look at how this affects the sale of small to mid-size manufacturing companies. In considering this question, one must consider how interest rates affect the Debt Service Coverage Ratio (DSCR) on acquisition loans. What Is Debt Service Coverage Ratio And How Do Interest Rates Affect It? DSCR is…

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Post Acquisition – 5 Tips for Helping the Acquirer of Your Manufacturing Business Succeed

post acquisition

The sale of most manufacturing companies will entail a portion of the purchase price be in the form of a Seller’s note. Seller’s note gives the Buyer a comfort level that the shareholders of the company they’re buying will make themselves available for training and transition post acquisition. They can also be an important bridge in the gap of perceived value between Buyers and Sellers. The approach to closing can be incredibly stressful for the Buyer. While you may have built your manufacturing business from nothing, the Buyer is acquiring…

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Southeast Manufacturing Acquisition Opportunity with Proprietary Process

What Every Acquirer Wants Everyone seeking acquisition within the manufacturing sectors wants something different and unique.  Companies with a unique product or a proprietary process are the most sought-after acquisitions in the lower middle market.  Accelerated Manufacturing Brokers, Inc. has exclusively listed a company that is the sole provider to every manufacturer in the United States of a part which is widely used in the electrical and power generation sectors.  Although the worldwide market for this product is large, only 2% of our client’s sales come from overseas markets, as…

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How Much Should You Pay for A Manufacturing Business? Determining Cash Flow Multiples

Cash Flow Multiples

If you’re considering leaving corporate America to become an entrepreneur, you’re not alone. If you have an appropriate down payment and good credit, you’ll likely seek to acquire your way into entrepreneurship. This is a smart move considering you can acquire an established business, customer base and cash flow. Manufacturing in the U.S. is booming and is the most sought-after type of acquisition in the lower middle market. In today’s competitive climate cash flow multiples between 5 – 6x or multiple of Seller’s Discretionary Earnings is appropriate. This figure is…

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Manufacturing M&A 2018 – A Mid-Year Look at The Market

Manufacturing M&A 2018

Each and every week we speak with manufacturing business owners around the country who are preparing to retire. They all have similar questions about the following:  process, valuation, confidentiality and timeframe.  There is one overriding question, however, that every business owner wants answered, and that is, “How is the market right now?” For manufacturers, the answer is a resounding “OUTSTANDING!”  In fact, we’re seeing better conditions than we’ve seen in 25 years. Manufacturing M&A 2018 Mid-Year Look Everything we’ve sold this year, (and for the last several years) has had…

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