The Manufacturing Business Buyer’s Bill Of Rights – What To Expect From A Broker Or M&A Intermediary

Selling lower-middle-market manufacturing businesses nationwide enables me to engage with highly qualified buyers. Many approach us after unsuccessful acquisitions to seek a manufacturing M&A specialist. We often hear accounts of wasted time, resources, and effort spent on deals that ultimately failed.

There’s a better way

Common Problems In Manufacturing M&A Deals

Many of these buyer complaints could be avoided if intermediaries thoroughly vetted clients and gathered necessary information before listing a company. The most common complaints include:

• The broker is advertising a business that is not exclusively listed with them. As a result, the business owner is not fully engaged with the broker and has not provided the information needed by a quality buyer to make an acquisition determination.
• The business owner has not been properly vetted and is not fully committed to selling.
• The broker provides inaccurate information on the cash flow. This can be the result of Seller deception, Broker deception, or simply an intermediary who didn’t know how or take the time to fully investigate the financials.
• Buyers face difficulty obtaining information beyond the initial business summary, such as sector and customer concentration, receivables, employee data, IT systems, working capital, and capital expenditure requirements.
• The broker has not informed the client about current market conditions, leading to unrealistic price expectations.
• The broker has not prepared the seller for the due diligence process or the documentation required for EBITDA or SDE.

The Manufacturing Business Buyer’s Bill Of Rights

These are some of the most common complaints we encounter. At Accelerated Manufacturing Brokers, we offer a Buyer’s Bill of Rights. If you are seeking to acquire a manufacturing business, you can expect that all businesses we advertise are exclusively listed.

• We establish strong working relationships with sellers, often spending months learning about their businesses before bringing them to market.
• Our clients are fully prepared to sell. We thoroughly vet each seller and only proceed when they are committed.
• The cash flow information we provide is accurate and can be fully documented. If a line item in the SDE chart can’t be proven, it doesn’t make our chart, period.
• Although we provide information to potential buyers in stages for the protection of our clients, we likely already have answers to almost every question you’ll ask, because we won’t take a listing unless this information is provided to us in advance. What types of metals does the target company work with and in what tolerances? What’s the customer and sector concentration? What benefits are provided to the staff? What is the make and model of the manufacturing equipment and has it been serviced regularly? All this, and so much more, we ask in advance of agreeing to take the listing. We aim to work with quality Sellers and shorten the sale cycle for the benefit of all.
• Our clients’ valuation expectations align with current market conditions. We do not accept listings from clients with unrealistic price expectations, ensuring your time is respected.
• Our clients are prepared to respond promptly during due diligence, as we communicate expectations throughout the process.
• Our clients understand that while we represent them, we are also committed to treating buyers fairly. We maintain high standards and work with quality individuals on both sides of every transaction.

If you have not worked with an M&A intermediary who understands manufacturing, values your time, and provides comprehensive information, we invite you to connect with us. If you are seeking a specific acquisition within the manufacturing sector, we are ready to assist.

Do you have an M&A intermediary nightmare story? We’d love to hear from you.