Full disclosure, some potential buyers hate us for our approach to buyer vetting. Just because a potential acquirer fills out an NDA, it doesn’t mean they’ll receive the pitch book we’ve created for the client company. We’re not obligated to share our client’s information with someone who is either professionally or financially unqualified.
Who do Manufacturing Business Owners Want to Sell to?
The vast majority of lower-middle-market manufacturing companies that have never received institutional investment want to sell to someone with manufacturing experience. This is a key criterion for them because they believe it ensures the continuity of the company and future opportunities for their staff who helped them get to where they are.
How Manufacturing Business Owners Define Experience
A disconnect arises when the business owner’s definition of experience is different than the potential acquirer’s definition. To a successful manufacturer, experience looks like this:
- The buyer has worked in manufacturing, preferably in a similar sector
- The buyer understands the Seller’s manufacturing process
- They preferably have ownership experience
- They have a proven history of successful ownership in manufacturing
- The buyer is passionate about the Seller’s specific manufacturing sector
- The buyer has the capacity both professionally and financially to take advantage of the foundation the Seller created
- A buyer with proven business development acumen
What Our Manufacturing Clients Don’t Want
- Someone without experience because they believe it puts their company at risk, and it does
- Someone who is purely a financial buyer
- Someone who is “industry agnostic”
- Buyers who define experience as having worked as a fund manager or in a PE firm that had manufacturing holdings.
- Someone who will overleverage the company, and thus put the business at risk
Why We’re Trusted by Manufacturers Nationally
At Accelerated Manufacturing Brokers, Inc., we vet potential buyers both professionally and financially. We refuse to waste our clients’ time by bringing unqualified buyers into the process. This is a promise we’re proud to make and dedicated to keeping. It’s also why we’ve successfully sold manufacturing companies that competing companies listed for five or more years. With over 30 years of service in the manufacturing sectors, we know what works and what doesn’t.