A recent potential client asked how we determine who is an appropriate candidate for our Accelerated Manufacturing Brokers’ Program. I thought it was a great question, one that is normally not asked upfront but perhaps should be.
The Accelerated Program is highly sought after by manufacturers throughout the U.S. Because we are selective about the types of manufacturing companies we work with, I thought it might be helpful to share the profile of the ideal candidate for the Accelerated Manufacturing Brokers’ Program.
Ideal candidates for our program are manufacturers who are either seeking a complete exit or are at a stage where they need to partner with someone to achieve the growth they’re aiming for.
We look for manufacturing companies who are focused on quality. We’re most known for achieving high sale prices when a manufacturer is doing something unique and/or difficult for their customers. Although we have financial criteria ($5-$50 million in revenue), we’re more concerned with the company’s quality. To determine value, we look at over 175 different data points, most of which can’t be seen in a tax return.
We don’t only sell manufacturing companies with unique or patented products. In our 30-year history, we’ve sold many manufacturing job shops. We find they can be just as desirable to quality buyers if they excel at quality and on-time delivery, have systems in place to provide visibility into every aspect of the company, and have kept current with machine tool technologies. With these items in place, and acquirer can immediately focus on growth. We’ve seen buyers pay just as much for a job shop as for a manufacturing company with patented products if certain key metrics are in place. This is why we look at so much more than the financials to determine a manufacturing company’s value.
Beyond that, we work with manufacturers who are ready for the process. They must be able to provide a level of information that allows us to properly position them in the marketplace to achieve premium results. If the manufacturer is ready to retire, we want to ensure they are emotionally ready for this huge life decision. If partnership for growth is what they’re aiming for, they need to clearly articulate what they hope for in a partner. We always tell those seeking investment partners that they need to aim for more than money (read more about this HERE). The partner should have skills that the company is currently lacking.
So yes, we’re highly selective about who we accept into the Accelerated Program. We achieve premium results for the sale of quality manufacturing companies nationally.