Buyers

Accelerated’s clients go through strict vetting to ensure they’re ready for the M&A process. As a result, they rank among the best-quality manufacturing companies available in the nation — and tend to attract three main buyer types. Which type are you?

Generally, our buyers fall into one of three categories:

The following characters are fictitious to help illustrate the three most common buyers.

business buyer's bill of rights

Entrepreneurial buyer: Ethan

Entrepreneurial Ethan is a corporate exec who is ready to travel less, be at home more, be his own boss, reignite the passion and enthusiasm for the work he does, and apply the multitude of experiences gained in business development, management and marketing to a new opportunity.

acquisition worthy

Private equity buyer: Pete

Private equity Pete works for a private equity firm. He is seeking an “add-on” to an existing platform company already in their portfolio. He’s professional and knows exactly what he’s looking for and looking at.

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Strategic buyer: Susan

Strategic Susan works in the same or complimentary space as our client. Her motivation to buy is to diversify her company’s portfolio or products offered, expand their geographic footprint, increase market share, or remove the competition.

Private equity Pete’s concerns:

Speed of information — Our responsiveness to a request from a PE firm seems to be most critical. As a PE investor, you’re looking at hundreds of opportunities, so we understand that time is of the essence. Moving with decisiveness has a lot to do with your success and ours. With Accelerated, you’ll have everything you need promptly.

Quality listings — Most of the companies we sell have annual sales ranging from $5-$50 million. While this is too small for many P.E. firms seeking platform acquisitions, if you’re seeking an add-on within the manufacturing sectors, we can help.

Our client companies have been through a vetting process. We’ve asked all the questions we know you will ask. We actually turn down more work than we take. What does this mean for you? While our client companies may be smaller, they’ve got a great story. They have stable recurring revenues, diversification of industries served, low customer concentration, and multiple avenues to scale up.

We also only work with clients who really want to sell. Small business owners can sometimes be a bundle of emotions, but the professionals at Accelerated Manufacturing Brokers, Inc. make the journey drama free.

No fluff — Just the facts. We get it.

acquisition worthy

Entrepreneurial Ethan’s concerns:

Financing and affordability — Many of the smaller transactions we execute that are under $5 million involve an SBA guaranteed loan product. With the new SBA rules, which took affect in January of 2018, an SBA 7a loan can be up to 90% of the acquisition amount, depending on a variety of factors.

Collateral requirements vary greatly as well. SBA lenders are not all created equal. Some take more than double the amount of time as others to process loans. Choosing the wrong lender can impact a buyer greatly, especially if there is competition for the acquisition.

Different SBA lenders have different debt service coverage ratio requirements, which affect your required cash down payment. We can help get you to the best lenders in the country and the right one for your particular needs and acquisition.

Fair and ethical treatment — Although we work mostly sell-side engagements, we have a moral and ethical responsibility to treat buyers fairly, which we take very seriously.

For the Accelerated Manufacturing Broker’s team, it’s all about relationships. We’ve made life long friends of some who have purchased businesses through us. We stay in touch and cheer their successes. We’re starting to sell some of the same businesses we sold to buyers over the years.

Being entrusted to sell the same business twice is the ULTIMATE COMPLIMENT that we’re honored to receive.

business buyer's bill of rights

Transition — Most every buyer wants assurance from the seller that they’ll stick around long enough to ensure the new owner has a handle on the business. At Accelerated Manufacturing Brokers, Inc., we’ve vetted our Sellers, so they understand that they must provide training and transition. The amount of time is negotiated between the parties, but companies with more complicated manufacturing processes will need a longer transition period.

Strategic Susan’s concerns:

Synergies — As a strategic buyer you want to know how an acquisition will help you scale up your business. An acquisition provides the speed of growth that can’t be matched organically.

You may be looking to expand geographically or seeking to diversify industries served as insurance against a downturn in a particular sector. You might just be seeking to expand market share by taking out the competition.

Whatever the reason, we can help you determine if an acquisition meets your unique goals.

Continuity — When considering an acquisition, you need to quickly determine if the customers will transition to new ownership. If you’ll be combining facilities, will the geographic change have a negative impact on the cash flow? We’ll help you figure it out.

Integration — A huge concern is integrating both operations and culture. Strategic buyers need to worry about more than the integration of accounting, payroll, vendors and suppliers; they need to be concerned if the cultures of the two companies can be married and survive.

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The Accelerated Manufacturing Brokers team will help you quickly determine if an acquisition will be beneficial to your existing company and if it can be integrated and scaled up.

No matter what type of buyer you are, we understand your concerns and are ready to assist in the acquisition process.

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