Each and every week we speak with manufacturing business owners around the country who are preparing to retire. They all have similar questions about the following:  process, valuation, confidentiality and timeframe. There is one overriding question, however, that every business owner wants answered, and that is, “How is the market right now?” For manufacturers, the answer is a resounding “OUTSTANDING!”  In fact, we’re seeing better conditions than we’ve seen in 25 years.

Manufacturing M&A 2018 Mid-Year Look

Everything we’ve sold this year, (and for the last several years) has had multiple offers. Not only has each listing had multiple offers, but the listings are going under contract with increasing speed. Here are some 2018 highlights:

• We sold a manufacturer of testing equipment to the semiconductor industry. The business was successfully sold to a strategic buyer who is a world leader in the same sector-based outside of the United States.
• For our southeast based building products client, 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. This one has a great back-story!  The company didn’t sell to who we thought it would sell to – Read the article about the acquisition consultant who ruined the buyer’s deal here. 
• We successfully sold a carve-out of a publicly-traded company, which was a Recognized Industry Leader of Micro-Precision Manufacturing. After having vetted 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.
• National award-winning 40-year-old metal fabrication and welding company successfully sold to an out of state buyer who relocated to New England to take the helm of our client company.  This was the story of two shareholders – one wanted retirement immediately and the other wanted to work for a few more years. We were able to get both of them what they wanted.
• Here’s one of our favorites. Our client was a fiberglass pool manufacturer.  The largest company in the industry offered to purchase our client to gain their customers and close the plant.  Our client gave us strict orders to find an acquirer who would keep the jobs in KY.  We vetted over 200 companies, granted 7 visits and received 6 offers.  With the business development and sales skills of the family who made this acquisition, the largest company in the industry might not be the largest for very long!  Best wishes to our new friends - the Accelerated Team will enjoy watching what happens next!

Each of the above stories represents dreams coming true.  Both dreams of retirement and dreams of entrepreneurship.  Each story represents jobs saved and opportunities for the employees of our client companies that otherwise would not exist.  This is why we like to say we’re ensuring the continuity of U.S. Manufacturing by transitioning ownership to a new generation of entrepreneurs.  This is our mission.  This is what we do better than anybody.  This is our passion.

If you’re thinking of retiring, we can help you prepare so the process is smooth.  We’ll make sure your legacy is ensured and respected.  If you’re considering the acquisition of a manufacturing company, we can help you find the right company that will play to your unique strengths.  One that can be scaled up to ensure your retirement later.

Reach out to us today – you’ll like the Accelerated Way!