The companies stay anonymous.

The lessons don't.

Sellers often come to us after listing their company with other M&A firms that failed to find an appropriate buyer and/or one with an appropriate offer. Such was the case here, where a generalist firm was hired with little understanding of the client’s operation and capabilities. After two frustrating years, the company sought new representation.

Through Accelerated’s proprietary valuation process, we uncovered the client company's unique attributes, enabling us to position them in a way that attracted multiple buyer engagements. Success was found with a buyer who headed up a fabrication plant, supervising hundreds of people in the greater Boston area. Passionate about New England, this company will keep its home and the workers in the community. The company had two shareholders, each with a different desired exit timeline. Both of them got exactly what they wanted.

Here’s what happens with an M&A specialization in Manufacturing. We launched our campaign in mid-April and hosted buyer visits over a two-week period in May at the client’s Midwest location. By the end of the first week of June, we received 12 offers from quality buyers nationwide. The deal closed in mid-August— four months from start to finish.

Although the client had patented products and was on major military aerospace platforms, they knew there were other applications for their products. Our charge was to find an acquirer with the business development acumen to bring the products into new platforms and applications.  The buyer, a large strategic with multiple locations throughout the U.S., will take the client’s patented products into new aerospace platforms worldwide. We’re thrilled to have facilitated this transaction and made life-long friendships in the process.

With twelve offers on this business, we have buyers that have been pre-screened both professionally and financially. If you’re thinking of selling your aerospace component or screw machine product manufacturing business, it might be the perfect time.

A three-decade-old family business that began on the family farm and grew to include a large facility in town and a secondary rental location. Part of the operation was still spread across three buildings on the farm and would eventually have to be moved.

With the business heavily reliant on its CPA firm, the buyer needed to be strong on the financial side, carry a manufacturing background capable of handling multiple locations, and be sophisticated enough to work with every major railway in North America. The client's mandate was a buyer committed to keeping the jobs in the community.

The answer was two buyers rather than one: both had worked for a large manufacturer, one with a financial background and one with engineering and manufacturing depth. Both had left the area for college and early careers and returned to raise their families, with a long-term commitment to stay.

Marty and Debbie — it was an honor and a pleasure to work with you. We wish you a long, happy and healthy retirement. Eric F. and Eric W. — we have no doubt this company is in good hands.

My All-Time Favorite M&A Deal – The One That Didn’t Sell

In my 30 years of selling manufacturing companies, I think this is the transaction that I’m most proud of. It’s the story of a listing that did not sell. It’s the story of true grit, determination, and friendship forged during the most challenging time in the client’s history. My all-time favorite M&A Deal is the one that didn’t sell.

Background:

I visited this manufacturing plant in July of 2022. I toured both the existing facility and the new building next door that was still being constructed. The equipment was first-class. This Seller understood the importance of quality machine tools. Although the plant was beautifully laid out, they were busting at the seams. Every machine was running, and every worker was busy. It was apparent why they needed a new building.

I interacted with several team leaders. Everyone knew the business well and what it took to be the best in their industry. After the visit, my firm concluded our valuation and told the owner it wasn’t time to sell yet. The new building would more than triple its capacity. It was clearly not in his best interest to go to market before that available capacity was filled, and based on what I saw, that would not take long. Fast Forward to January 2024:

Although the building was supposed to be completed within a month of my visit, it was still not completed. Even though my client was paying approximately $47,000 per month for the construction loan, no certificate of occupancy was issued because of construction violations.

Through no fault of their own, the company was facing foreclosure, with the bank calling the note and their line of credit. The out-of-pocket construction costs and paying the mortgage on a building they couldn’t occupy left them without operating capital. As a result, they closed their doors while trying to find a path forward.

The Listing:

We learned what transpired during a listing follow-up communication with our potential client. Although we don’t normally deal with manufacturing companies in distress, I knew the quality of this company, the quality of its products, the design genius of its founder, and the cult-like internet following the company previously enjoyed. We, therefore, agreed to list them.

The Founder’s Mandate:

While filing for bankruptcy would have been the easiest thing for the founder to do, his character wouldn’t allow him to take the easy way out. The mandate he provided to Accelerated Manufacturing Brokers, Inc. was to find a buyer who understood the brand and its laser focus on quality but also one who wanted to make the creditors whole to protect the brand’s reputation. This was like trying to find a needle in a haystack.

Potential Acquirers:

We hit our marketing target with plenty of interested parties with related experience. The problem was that they either wanted to simply buy the patents or acquire the debt and foreclose, then sell the equipment and real estate to make their profit. Neither was a good result for my client.

The LOI:

This client entered into an LOI with a company that claimed they would make the bank and the other creditors whole. As we proceeded through due diligence, it became apparent that their goal was identical to other buyers we had kicked to the curb. They wanted to buy for the lowest price possible and then sell everything to enrich themselves. They, too, were kicked to the curb.

A Better Path Forward:

Instead of focusing on finding another buyer, my firm’s attention turned to how we might help this company reopen. Was it possible to engage with the bank so the company would be granted some breathing room to restart? Could the jobs return to this community? Was there too much damage done to the brand because of the shutdown? Reopening was clearly a better path for all concerned. It’s a result we are proud to have helped facilitate.

The Company brought back a core set of prior workers to reopen. They added employees every week as orders came flooding in. The founder’s grit, determination, and character are paying off. They’re building old orders for customers who got burned in the shutdown. They’re paying their vendors. My favorite part is the workers having their jobs back before Christmas and reading the rave product reviews online. Of course the customers are raving because these are the BEST MADE TRACTOR ATTACHMENTS MADE IN THE USA!

Friends For Life:

I made no money on this one, but I made friends for life, and I couldn’t be happier. This is like an “It’s a Wonderful Life” comeback story. If you have never watched that movie, I hope you do this holiday season. It’s everything right in the world. This company is experiencing a fabulous comeback with new products on the drawing board. They’re building back smarter. If anyone is still waiting for their demise, here is my advice: DON’T HOLD YOUR BREATH. There will be no stopping my amazing friend and his team.

Sellers often think that an ideal buyer is a company that does exactly what they do but on a larger scale. However, this transaction proved that “different” can be better. In this case, the buyer was a premium precision CNC house, and the seller was a premium precision fabrication house. Although the buyer had some fabrication capabilities, adding the client company dramatically increased the services they could offer to their core customers.

The client company’s largest customer was a publicly traded, multinational semiconductor giant. The Accelerated team had to find an acquirer of sufficient size and with a reputation for quality, one that would be welcomed by the client’s core customer.

This acquisition means the acquirer will lead the precision fabrication market in New England, tomorrow … the world.

It was an absolute pleasure to work with both sides, and we wish them well in their future endeavors.

Our client developed technologies for producing ceramic cores and investment casting tooling, along with proprietary methods that cut manufacturing cycle times sharply. These changed the way gas turbines are made, allowing highly complex geometries that had not previously been possible.

Although the technologies were sought by some of the largest jet engine manufacturers in the world, the best choice was a partnership with the customer the technologies had been developed for. Pratt & Whitney, a division of RTX, completed the acquisition together with two members of the client's management team.

That allowed the founder and majority shareholder to achieve the exit he wanted while creating an ownership opportunity for the managers who had built the process with him.

Valuing companies with industry-disruptive technologies and navigating competing shareholder interests and desired exit timelines are core strengths of Accelerated.

It was an honor to be entrusted with the sale of an 80-year-old, second-generation defense contractor who was a Tier I provider to names like Northrop Grumman, Lockheed Martin, GE, and General Dynamics. Our challenge was finding a buyer who was not only financially qualified but who had the professional chops to work in difficult tolerances and hard-to-cut metals.

The acquirer had to have a proven history such that the iconic customers would welcome the continuity of the relationship and LTAs. We nailed it because difficult is what the Accelerated Team is good at! Best wishes to the acquirer; we’ll enjoy watching you grow this business.

We were so honored to be entrusted with the sale of this third-generation plastic injection molding company, which has been in business for nearly 80 years. The family wanted to ensure the Company’s continuity by selling to an experienced buyer who would grow it but keep it in the community. We found the perfect fit in a buyer who already owned three businesses and had a strong background in plastic injection molding. We’ll be cheering him on, and we can’t wait to see what happens next! Congratulations to all.

When your founder-led client company is the world leader with 11,000 customers worldwide across four continents and a cult-like following, they strongly prefer a buyer who will be as passionate as they are. For a client company with registered trademarks in the US, Australia, Canada, the EU, Hong Kong, Taiwan & China and well-organized systems, we were tasked with finding a motorcycle and dirt bike enthusiast with the business acumen to take the company to the next level. We found an entire family of enthusiasts with a proven business history to take the helm. We can’t wait to see what happens next!

Best wishes to the new owners and the founding family as they return to their home country.

Not every deal goes smoothly. This client experienced the loss and regaining of a large customer, as well as staffing issues during the listing cycle, which affected their ability to get their product out on time. We also had two partners with competing exit timeframes. Persistence and commitment to this project paid off, and both partners got the exit timeframes they wanted. The employees will become part of a larger organization and gain future opportunities they might not otherwise have.

This was a great example of a private family office that owned multiple manufacturing companies nationally, adding to their existing portfolio.

A manufacturer of military aircraft landing gear components in the Northeast came to us after having their business appraised by three other companies. Our valuation was 20% higher than the next highest. Our valuation was higher because it considered the difficulty of the company’s manufacturing processes, the tolerances required in the work, and how few manufacturers in the nation could do what they do.  The pitch book we developed for this client positioned them for success, told a compelling story, and produced the desired results.

Within 45 days of listing, we were fielding multiple offers. Post-closing Seller involvement was also a huge client concern. The retiring client will work part-time for a limited period, which is exactly what we were asked to aim for. The jobs are guaranteed to remain in the community, with a long-term lease in place.

And our 20% higher valuation – we beat it!

Sometimes life throws you painful curve balls that mess with your plans. As if the illness of the aging founder, causing his exit from the company, wasn’t bad enough, two key managers, also family members, passed away unexpectedly. We helped this family navigate a very difficult process to land with an incredibly good result. One the founder would be proud of. We made what we believe will be lifelong friendships in the process. Wishing our friends some much-earned rest and relaxation, but most of all, peace.

What happens when an international pandemic begins just as we’re ready to launch our marketing campaign for a new West Coast listing 3,000 miles away? That didn’t stop us! We vetted over 300 potential acquirers. Only five were granted visits, and all five submitted offers. The employees of our client will now be part of a larger organization with growth opportunities they would not have otherwise had. The buyer has committed to remain at the existing location long-term. This, coupled with a great price, made for one very happy client.

This was also a great example of why manufacturing specialization matters. In some sectors, aerospace being one, if you’re doing anything of relevance, it’s impossible not to have a customer concentration. This client had several conversations with M&A professionals who advised that their customer concentration would result in a lower price. Not only was our valuation higher, but we also beat it by $1 million.

What do you do when your partner wants to sell, but you’re much younger and simply not ready? Perhaps you offer to buy out the partner. But what if the partner wants more? This was our challenge. We got both partners what they wanted. We narrowed hundreds of candidates to only 6 who were invited to visit. Offers were received from 5 of the 6. This was the fastest close in Accelerated’s history – approximately 5 months from launch to closing. We can do the same for you!

If you’re a CNC & Robotic Machined Component Manufacturer thinking of retirement, we can help you get the best price and terms.

This was a great example of a quality private equity firm making an acquisition and continuing to make sound decisions post-acquisition to facilitate the company's growth.

Can you imagine the time it takes to vet 198 candidates for the sale of your business? You’d never be able to focus on your business. We freed our client to grow their business, which doubled in size during the time we were marketing it. We narrowed down the 198 to only six companies that were granted visits. Of the 6, 4 submitted LOIs. We’re delighted that the business will remain in its current location, keeping the jobs in the community. The Company that made the acquisition has multiple locations, with this being their first in New England.

If you’re an Electronic Contract Manufacturer thinking of retirement, we can help you get the best price and terms.

We were entrusted with the sale of this 73-year-old company. Our challenge was to find someone with specific experience in specialty-vehicle HVAC who would keep jobs in the community. We vetted 187 potential candidates, only granting facility visits to 3 people. We hit our target perfectly with regard to experience and passion for the community our client was located in. We assisted the buyer in connecting with a quality lender who provided financing on both the business and the real estate.

Here’s why it’s important to work with an M&A professional who has a large following AND understands manufacturing. This Company was sold to a much larger defense contractor who originally inquired about a different listing. When it was determined that the listing didn’t suit their needs, we were able to quickly recommend a brand new listing that just launched days earlier. The result was a perfect match for our client. It was also the fastest listing-to-LOI time and the fastest LOI-to-close time in our firm’s history. Our client will remain with the buyer in a sales capacity, but now has an incredible infrastructure to support his efforts.

After vetting 199 different buyers, including large strategics and private equity firms, it was determined that the general manager was the best candidate for this acquisition. With the Seller’s health failing, it was in his best interest to close quickly, without lengthy due diligence or contract negotiations. The GM was the logical choice; one the founder had not previously considered. We were delighted to facilitate a process that led to the right decision for everyone.

This was by far one of the most challenging projects we’ve worked on in 26 years of business. We had to navigate the death of the Company’s founder during the listing period and a company in crisis. We vetted hundreds of people, deeming only 16 to be BOTH professionally and financially qualified. Of those 16, only 4 groups were granted visits, and all 4 submitted offers. Ultimately, the Company sold to a respected industry giant that will maintain the brand while respecting the legacy of the founding family. A result we are proud to have been a part of.

Sometimes in life, things don’t go as planned. If you have an experienced M&A team, you’ll get to the closing unscathed. This deal had more lives than a cat. Our original buyer got cold feet and backed out (very rare). We had multiple LOIs within a few short weeks. After settling on a second buyer, we successfully navigated our client’s loss of a major customer and got both sides to the closing table, happy with the result.

With two LOIs submitted on this business, we’d found the perfect buyer for our client. However, with a 65% customer concentration, 12 acquisition lenders declined the deal. We referred the buyer to one of our national lenders who understands the aerospace industry, in which it’s almost impossible not to have a concentration. This business had 2 shareholders: one wanted to retire immediately, and the other wanted to continue working. We got them BOTH what they wanted.

Our client said the deal MUST close in 2018 for tax purposes, but we had only 60 days from LOI to the end of the year. Add in 2 major holidays, a car crash, a snowstorm, the client’s roof collapsing, causing equipment damage, and a government shutdown with financing coming from the SBA. We still closed it on December 31st because difficult is what the Accelerated team does! We obtained multiple offers, and this business sold over list price.

Our client was an industrial furnace manufacturer specializing in new and remanufactured industrial vacuum, sintering, MIM, vacuum hot-press, and hydrogen furnaces. To ensure the company's continuity, our client requested that we find a buyer with relevant industry experience, rather than simply a financial investor. This was like finding a needle in a haystack, but we found the perfect match! Read about Marshall Klimasewski getting the perfect buyer.

The largest company in the industry offered to buy our client outright — to gain the customers and close the plant. The owner's instruction was the opposite: find an acquirer who would keep the jobs where they were.

We vetted over two hundred companies, granted seven site visits and received six offers. A single unsolicited offer gives an owner no leverage to enforce a condition like that. Competition does.

A national award-winning, forty-year-old metal fabrication and welding company, sold to an out-of-state buyer who relocated to New England to take the helm.

Most buyers of lower-middle-market manufacturing companies come from more than a hundred miles away. An advisor who only works locally is searching a fraction of the real market.

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After vetting more than 100 buyers, only four were granted plant tours. All four submitted Letters of Intent. The business was sold to an out-of-state buyer who relocated to take the helm of this company, keeping the jobs in the community. There is an incredible story behind this success, but it’s too long to publish here. The story includes lessons for buyers, sellers, M&A professionals, and consultants hired for buy-side work. You can read it here: The Acquisition Consultant Who Destroyed a Buyer’s Dream Acquisition with Bad Advice

We successfully sold this carve-out of a publicly traded company. After vetting over 250 buyers, only 9 were granted visits. We obtained multiple offers, and the business sold at more than the list price. This business was listed with a local broker for more than a year with no result before we were called in to sell. Manufacturing specialization matters in M&A.

This client served Fortune 500 scientific instrument OEMs. He would not engage with a buyer who did not understand the manufacturing processes relevant to his business. As with most Accelerated clients, the owner believed the acquirer’s experience would directly impact the company's continuity and the future opportunities for the staff who had helped him become so successful. We found the perfect match in an out-of-state buyer who previously ran a division at J&J.

The ultimate compliment and testament to the quality of Accelerated’s work is being asked to sell another company of a prior client, eight years after the first. We were honored to accept a second engagement.

While the Accelerated team specializes in the sale of lower-middle-market, highly successful manufacturing companies, we are occasionally asked to assist a company in distress. With the doors closing on this aerospace component manufacturer, we were asked to find an acquirer for ongoing customer relationships and inventory. Because of the depth of our aerospace and defense-related work, it sold at list price within 40 days.

This industrial equipment repair company, which served the steel and paper mill sectors, was listed by a local broker for over four years, but no appropriate offers were made. The shareholders turned to the Accelerated team for help. Our proprietary process looked at valuation drivers not previously considered. This resulted in a higher valuation, and the company sold for more than double the offers previously received.

After vetting hundreds of potential buyers, 3 strategic buyers with multiple holdings were granted plant tours and meetings. Two of the three made offers, and our client had the luxury of choosing whom they wished to sell to. We accomplished in record time what a local broker couldn’t do in 4 years of listing this business. A “local” broker is not always the best choice. It’s about exposure to the best manufacturing business buyers in the U.S.

Sometimes shareholder dynamics can turn the M&A process into an emotional landmine of anger, frustration, mistrust, and competing interests. When the shareholders are family members, an M&A team is walking a tightrope with no safety net. Although we’ve navigated difficult client family and shareholder dynamics before, this one was the most challenging.

Building trust in a way that both sides felt seen, heard, and properly represented became the path to success, alongside speed. Speed was our friend, combined with a highly targeted, expert-developed marketing plan. The Accelerated plan produced the desired result, with an LOI submitted less than 30 days after the listing agreement was signed. We found a buyer who was not only professionally and financially qualified but also displayed a high level of emotional intelligence when dealing with both shareholders.

We were asked to provide a valuation of this stamping company two years before it sold. The owner, a brilliant manufacturing mind with a thriving company, held joint patents with Raytheon. He had been diagnosed with a life-threatening disease. Like many entrepreneurs, he had his identity wrapped up in his work, so he chose to continue working.

His widow called for help after he passed. She was being bombarded with subpar offers and needed someone to step in and take over the negotiation process. The company was successfully sold to a private equity-backed strategic buyer after the founder's death, at a much higher price than they had previously offered.

Sometimes the projected growth rate in a particular sector makes a project really fun to work on. With our nation’s aging infrastructure, companies that could develop a replacement for a pump or valve controlling a major city's water supply when the original manufacturer went out of business decades ago were in high demand (and they still are). We dealt with every major player in the industry, including international giants.

What makes a deal like this fun for an M&A team is hitting our marketing target and the resulting competition. Three LOIs were submitted in one week, and the client got to choose whom he wanted to sell to.

Our client was a 50+-year-old industry leader in semiconductor testing equipment.  One of the only companies of its kind still based in the U.S. at that time. The owner’s failing health dictated the need for speed. The company was successfully sold to a strategic buyer, a world leader in the same sector, based outside the United States. While most Accelerated clients do not want to sell to buyers outside the U.S., there are instances in which doing so ensures that technologies developed over decades will continue to be used worldwide.

A Midwest-based manufacturer of sand-handling equipment for the foundry industry came to us after their business was appraised by a prominent CPA firm. Our proprietary valuation system considers over 175 data points to determine value, including factors not visible in financial statements. Our valuation was 25% higher, and the business sold in line with Accelerated’s valuation.

Accelerated’s client was the broker who was tasked with selling this business twenty-five years earlier. He said he never regretted “drinking his own Kool-Aid,” because he had grown the business and it had been very good to his family over the last two and a half decades. The buyer’s story was equally unusual. He was considering acquiring another company when he saw the new listing on Accelerated’s website. He quickly executed an NDA and received the sale materials. The feedback was “get me an appointment to see this as quickly as possible.” As it turned out, his family had a vacation home in the beautiful New England town where this business was located while he was growing up. He spent many summers there, and his parents were buried there.

We vetted 75 buyers for this listing; two were granted facility visits. Although both submitted offers, there was no competition after the buyer told the story above. The seller, the buyer, and the M&A team all believed this was just meant to be!

DIY is not a good idea for an M&A transaction. This was a unique product-based business with customers worldwide. The family that owned it tried unsuccessfully to sell it for years. They reasoned that one of their customers would be the likely buyer. Their customers weren’t manufacturers; they just needed secure cash boxes. The Accelerated team understood the manufacturing processes involved in making the products and sought out fabrication acquirers who didn’t have their own product lines.

We successfully sold to a buyer within our network, who we’ve known for years. This was the perfect match for both sides.

Everyone says customer concentration is an issue, and it often is. What if a company only has one customer? Impossible right? It wasn’t impossible for the Accelerated team. The challenge was to tell the client’s story in a way that potential buyers understood the client was so vertically integrated with the customer that they weren’t just the sole provider of the components they manufactured; they were really the R&D arm of a $30M revenue company. As such, they would be almost impossible to replace.

We vetted over 250 buyers; only three were granted visits, and all three submitted offers.

Our client was a Southeast-based manufacturer of gun barrels using his own proprietary rifling technology. After dramatically overselling at the SHOT Show what he could manufacture, the Accelerated team was asked to find a partner with massive production capabilities. Time was critical, with orders in hand and promises made. If we couldn’t get this done quickly, it would damage customer relationships.

Success was found with a New England-based manufacturer in a different sector who was specifically shopping for an acquisition in the small-arms space. They acquired 51% of the company. After making the acquisition, they invested in the equipment necessary to dramatically ramp up production.

The client remained with the buyer in a sales capacity.

This client had a thriving CNC shop serving the medical device community. After a life-threatening medical diagnosis, the owner sought our help.  With his prognosis, speed was essential. He needed to transition the company quickly to ensure its continuity. Accelerated needed to target potential acquirers with a reputation for premium quality and the ability to meet critical tolerances. Only those with appropriate experience and the ability to move with speed were allowed into the process.

The result? Three LOIs were submitted on this listing within 48 hours of each other, and all at or above the client’s list price. Being embedded in the manufacturing community and knowing the appropriate targets made all the difference for this client, his customers, and his employees.