Here’s a look at the types of manufacturing companies that sold in 2018 and what we’re expecting for 2019.
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 Southeast Tool & Die shop who performs emergency repair work for large pharma production lines. This business received multiple offers and sold over list price. As a result, we are seeking other tool and die and EDM shops in the southeast.
- 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!
2019 – What’s already under contract and what will be HOT throughout the year:
- Our listing of a New England CNC aerospace component manufacturer is under contract and scheduled to close in February. This listing received multiple LOIs and we have a wealth of buyers still seeking the same type of company.
- Our listing of a New England coated filter media manufacturer is under contract and scheduled to close in the first quarter. This listing drew a wealth of offers from buyers throughout the northeast. Some were all-cash offers. As a result, we are still seeking appropriate acquisitions throughout New England and the Northeast.
We’re finding that the most sought-after areas of the country for manufacturing acquisitions are:
• New England
• Northeast
• Southeast
• Midwest
The most sought-after manufacturing sectors for acquisition currently are:
• Aerospace Components
• Pump & Valve
• Infrastructure Repair & Maintenance
• Testing Equipment
• EDM
• Modern Tool & Die
• Medical Instrument
• Any large capacity turning
• Structural Steel & Fabricating
If you’re thinking of retiring, we can help you prepare to ensure the process is smooth. We’ll make sure your legacy is preserved 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. Our success rate is the highest in the industry for the sale of manufacturing companies. Our system works for Sellers AND Buyers.
Reach out to us today – you’ll like the Accelerated Way!