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Analysts who track the M&A market are forecasting a sizable uptick in deal activity, both in the number of deals and the size of the transactions. According to the Q4 2017 Market Pulse Report, a publication of the Pepperdine Graziadio Business School, the middle and upper markets tanked at the close of 2017 due to uncertainty of tax reform. However, lower middle market deals were at an all-time high. This trend is expected to continue during the course of 2018. Here are some other interesting insights from the report: Manufacturing…
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Accelerated Manufacturing Brokers, Inc. has exclusively listed an ultra-modern New England based aerospace component manufacturer. Our client works in specialty alloys and in tolerances that are difficult for most facilities. They are not a high-speed, high-volume job shop, but rather small run, difficult job specialist. Their parts become part of the newest aircraft engines on the market. The company is also a Tier I provider for oil and gas exploration equipment. They serve the world leader in exploration technology whose customers include all major multinational oilfield service companies and independent…
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Manufacturing M&A is on fire in the Southeast United States. Accelerated Manufacturing Brokers, Inc. has three new exclusive listings in three different manufacturing sectors: First – Lumber Manufacturer The first is a yellow pine lumber manufacturer with sales in excess of $10 million. The company has a history spanning 6 decades and they dominate their region and are incredibly profitable with easy growth avenues. Learn more here. Second – Specialty Machining & Molding Company Our second southeast client is an ISO certified manufacturer with three distinct areas of specialty that…
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Do you have an acquisition nightmare story? Many would-be acquirers of manufacturing companies have wasted time, money and energy on deals that fall apart in due diligence. As a result, the business brokerage industry has a horrible reputation. In this article we’ll examine some of the problems the industry faces and, as a buyer, techniques to determine how to find quality acquisitions that will make it through bank underwriting. Most small manufacturing companies tend to be larger than “main street” businesses (dry cleaners, pizzerias, retail shops, etc.). Therefore, the level…
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In our Manufacturing High-Five series, we like to give a shout out to manufacturers who are a great example to others in the areas of philanthropy, social media or web development. This month we’re highlighting a 130-year-old manufacturer of plumbing products, Prier, located in Grandview, MO. This company is a shining example of how corporations can make a difference in their communities. Prier is a tithing company. Each year they give away 10% of the prior year’s profits to charitable causes in their community. Here’s how they describe their giving…
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Would you agree that your dream manufacturing acquisition should have the following characteristics? • Incredibly high gross margins • A company that competes on quality not price • Modern state-of-the-art equipment and facility • Sales that are organic in nature, leaving plenty of room for growth • A business with roll-up potential • A young, skilled and well-trained workforce, not dependent on the owner If you’ve been looking for an acquisition with these characteristics and you’re open to something in the Southeast, you’ll want to keep reading. Our client is…
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Many lenders have plenty of experience in business acquisitions, but do they have specific experience with manufacturing? The acquisition of a manufacturing company is entirely different from acquisitions of restaurants, retail, or service companies. It’s important that your lender is experienced or at least knowledgeable in the industry, or you may be receiving irrelevant advice! We recently encountered a situation where a lender advised a buyer that he should not be paying above a 4x multiple for a business. After taking this position, this potential buyer quickly lost out to…
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Everyone has heard the phrase “don’t put all your eggs in one basket” but what does that mean for manufacturers? In any business, diversifying revenue streams can reduce risk and generate new areas of income for the company. Does diversification in the manufacturing industry mean simply fabricating new parts and products? Not necessarily! There are plenty of areas for opportunity, from increasing capabilities to gaining distribution rights to acquisition of related entities. Putting your eggs into multiple baskets allows you to create an enterprise that will reach new pools of…
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Image Copyright Selling a manufacturing business for most will be the largest transaction of their lives and impact their retirement lifestyle. Therefore, choosing the right M&A Advisor or business broker to represent them is critical. Because most small manufacturing business owners have not been exposed to the M&A world, they sometimes don’t know where to start. In this article we’ll be exploring the 10 Most Important Questions Manufacturers Should Ask Before Choosing an M&A Advisor to Sell Their Business. Check it out: Q1. Do I have to pay…
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In the search for the perfect manufacturing acquisition, it can almost be guaranteed that you will be in contact with a business broker. A broker is a seller’s first line of defense against unqualified buyers. The impression you make on an intermediary will undoubtedly influence their opinion and recommendations to their client. In some cases, this impression can make or break your chances of purchasing the business! Here are some general tips for what to do and what NOT to do while communicating with a manufacturing business broker. Regarding…
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