CNC Component – Defense & Semiconductor

Impossible? Not for the Accelerated Team. This client was a second-generation, 50+-year-old precision CNC component manufacturer serving the defense and semiconductor sectors. The problem was they were Tier II and had an 80-90% customer concentration in any given year.

Our challenge was to frame the story so a quality buyer and their bank underwriter saw opportunity rather than risk. It became a story about the customer’s customers. That list included a who’s who in the aerospace, defense, and semiconductor industries. This client’s parts were on almost every jet in the air. They had blanket orders with their prime customer, who desperately wanted them to increase capacity.

The story focused on how vertically integrated our client was with the customer, making them hard to replace. It also highlighted growth opportunities with other divisions of the same company.

We found the right match in a family investment company led by a serial entrepreneur with multiple manufacturing holdings. This deal required the Accelerated team to find not just the right financial offer, but a buyer the core customer would respect and welcome. Mission accomplished! Best wishes to the acquirer and his team as they take the helm. Best wishes to our clients for a long, happy, and healthy retirement together with what we’re sure is some much-needed rest.

If you’re a seller who’s been told that customer concentration means you must accept a lower price, you may need an M&A firm that understands your industry. Specialization made all the difference for this client.