Founder-led or family-run companies have an additional layer of concerns that a private equity seller might not have. Find out why.
Working in Manufacturing M&A nationally, I speak with business owners every week. They all tell me they receive dozens of emails, phone calls, and letters each month from M&A professionals who want to represent them in the sale of their businesses.
All claim to have experience, and many do.
But Do They Specialize in Manufacturing?
That is the real question.
Manufacturing businesses are different, and the M&A professional representing your company should understand those differences.
Here are some essential questions every manufacturer should ask when considering an M&A intermediary or business broker:
- Does the M&A intermediary spend 100% of their time focused on the manufacturing sectors?
- If not, will they recognize the same potential synergies and reach the best and most complete target market of buyers for my business?
- If a buyer is looking to acquire a manufacturing company, can they easily find this intermediary or broker’s website?
- Will this intermediary or broker be able to speak intelligently with potential buyers about my company’s manufacturing processes?
- How well-known is this intermediary or broker within the manufacturing community?
Founder-Led and Family-Run Businesses Have Different Concerns
Another critical question is whether the M&A professional specializes in founder-led and family-run businesses.
Why does this matter?
Family-run and founder-led manufacturing companies often have concerns that other sellers might not have, such as:
- Will the company remain in the community after the acquisition?
- Will the acquirer respect and build upon my legacy?
- Can I count on the acquirer to provide future opportunities for my staff?
- If I meet my staff or their family members at the grocery store or at church after the sale, can I look them in the eye knowing I sold to the right people?
The bottom line is that founder-led and family-run companies have an additional layer of concerns that a private equity seller might not have.
You Shouldn’t Have to Choose Between the Right Buyer and the Right Price
If you’re a manufacturer ready to retire, ask yourself whether the M&A intermediary or broker you’re considering is skilled at finding buyers who will meet the requirements above AND has a history of achieving strong financial results.
You want BOTH.
Specialization Matters in Manufacturing M&A
It’s not just sector specialization that matters. The types of buyers the firm is known for attracting matter as well.
It really is possible to sell to someone you trust will:
- Keep jobs in the community
- Respect your legacy
- Grow the business and provide future opportunities for your staff
And you can achieve all of the above AND sell at a number you’ll be thrilled with.
Reach out today to learn more!
The biggest improvement, in my opinion, is the new subtitle “You Shouldn’t Have to Choose Between the Right Buyer and the Right Price.” That captures one of the strongest ideas in the article and gives a business owner a reason to keep reading.
I also changed “entities” to “businesses” in the founder-led section because it feels more natural and less legalistic while preserving the exact meaning.