Manufacturing Specialization – Does It Help?
When you’re buying or selling a manufacturing company, does it make a difference what kind of broker you work with? We think it does. We just sold a VT based manufacturer. We only brought two people in to see the business. Both buyers submitted LOIs. During the same month, we had 3 buyers visit a CT based manufacturer. Again all three submitted LOIs. Looking at the end game, you might say the process was easy right?
We actually had to weed through a lot of nonsense to narrow the field to buyers that were both financially qualified and capable of running each business. To play that kind of matchmaking game you really have to understand manufacturing, the client and whether or not the skill set of the buyer will translate to a successful transition to the helm of the client company. Manufacturing M&A is the ultimate matchmaking game!
Good Matchmakers Get Results
One of the three buyers that submitted an offer on the CT business, (which was sold to one of the other two buyers), will get a first look at a new listing in CT this month. Another buyer from MI seeking relocation to New England will get a first look at a new listing in MA. Why would we allow this? These buyers are the perfect match for our clients. The buyer appreciates the first look, and the Seller appreciates us bringing quality, qualified buyers to the table.
If you are seeking the acquisition of a manufacturing company, contact someone that specializes in this sector. Provide DETAILED acquisition criteria. The more information you provide, the faster you’ll reach your goal.
If you’re a buyer leaving corporate America for business ownership in the manufacturing sector but you DON’T want to work on the shop floor, be specific. Certain situations are well suited for those that prefer to work in areas of business development or sales and marketing. A good manufacturing broker will understand your skillset and provide you with appropriate opportunities.
If you’ve been shopping for a manufacturing acquisition
and not feeling the love, you need a different kind of “matchmaker.”
Contact us with your questions.