Buying A Manufacturing Business
The Resurgence of Reshoring Due to the Coronavirus
Chinese mfg. will not return to production capacity until Q3 2020. 1, 2, and 3 suppliers’ products will not arrive in U.S. until end of Q4 2020 or Q1 2021.
Read More2020 – More Small Acquisitions Predicted
The uncertainty on the political front, trade wars, and a pandemic prognosis for recession globally, simply does not translate to the U.S. Market. Easy financing conditions along with earlier tax cuts and shifting small manufacturing demographics are driving deal activity for the next decade through 2030.
Read MoreThe China Trade Deal and Its Possible Affect on The Gear Manufacturing & Power Transmission M&A Market
Since Phase 1 of the China Trade Deal was announced, there’s been sharp increase in inquiry regarding gear manufacturing and power transmission. See why.
Read MoreBy 2030 Women Will Own One-Third of All Manufacturing Enterprises
The women we surveyed are well-educated (90 percent hold a bachelor’s degree or above), experienced (71 percent have been working over 15 years), hold a variety of senior positions, and are employed by large companies (52 percent work in organizations with annual revenue over $1 billion).
Read MoreCorporate Buyers: How to Position Yourself Against the Competition
To beat the competition and close the deal, corporate buyers need to know how to position themselves to make your offer appeal the most to the seller.
Read MoreLooking for Your Own Opportunity? Consider Buying an Existing Business
Starting from scratch isn’t the only way to get started. Buying an existing business can help you hit the ground running. Here’s what you need to know.
Read MoreGrowth by Acquisition vs. Organic Growth?
When you’ve built your manufacturing business from the ground up and have experienced several years of steady revenues, you might start to think about growing it even further in order to gain more market share. And this begs the question: Should you opt for organic growth, or would an acquisition be preferable? Organic Growth As Investopedia explains, organic growth is the expansion that a business can achieve by ramping up its output and increasing sales from the inside out. In other words, organic growth is driven by internal forces, for example: The…
Read MoreAn Environmentally Friendly Business Guaranteed to Grow: Does It Exist?
Every buyer seeking acquisition within the manufacturing sectors wants a business guaranteed to grow. However, in order for that to exist, the manufacturing company would have to address a need that is not only current, but guaranteed to increase over time. For exponential growth, the need would have to be greater than a particular sector or geographic region. Think of products or technologies that have solved a universal need tied to all of humanity. While everyone in every nation might not be using them yet, there is potential for worldwide…
Read MoreCritical Elements of a Letter of Intent (LOI)
If you’re in the process of acquiring a manufacturing business, you’ll be expected to submit a formal letter of intent — or LOI — to the seller. So what exactly is this, and what critical elements should it contain? The Purpose of a Letter of Intent (LOI) A letter of intent is written after you’ve performed sufficient groundwork to want to proceed with further due diligence prior to an acquisition. It’s generally considered to be non-binding, but it does outline in broad strokes what a final purchase agreement could look like,…
Read MoreAll SBA Lenders Are Not Created Equal: Benefits of Preferred Lending
Acquiring a manufacturing business is a significant endeavor. A critical step in this process is securing the funding to buy the company you have in mind. Oftentimes, entrepreneurs seek financing from angel investors or venture capitalists. However, these options don’t always work out. The investors may have requirements you can’t meet or that you don’t agree with. At the same time, they might not offer the full amount you need to acquire the targeted business. SBA-Guaranteed Loans Fortunately, the U.S. Small Business Administration — or SBA — is a governmental…
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