One of my all-time favorite quotes is from Walt Disney – “It’s kind of fun to do the impossible” Occasionally selling manufacturing companies falls into that category, especially when it’s in the specialty vehicle market. We were entrusted with the sale of a 73-year-old company. Our challenge was to find someone with specific experience in specialty vehicle HVAC and who would keep the jobs in the community.
We vetted 187 potential candidates, only granting facility visits to 3 people. We hit our target perfectly with regard to experience and passion for the Midwest community our client was located in. This was seriously like finding a needle in a haystack. It IS kind of fun to do the impossible!
One of the 5 greatest fears manufacturers must face when seeking a liquidity event for retirement is whether or not the jobs will remain in the community and there will be future opportunity for the staff. It is possible to achieve that goal and sell at a price you’ll be thrilled with.
The entire specialty vehicle market is HOT right now, here’s why:
When you think of specialty or electric vehicles, you might just be thinking of the consumer market. But substantial growth is also expected in other areas. Consider the following recent developments:
- In 2021 the U.S. Postal Service awarded a multi-billion-dollar contract to modernize the postal delivery fleet, including 165,000 new vehicles in the next 10 years.
- In 2020 GM Defense Awarded a $214.3M Contract to Produce the U.S. Army’s Infantry Squad Vehicle.
- As of 2019, there were 645,000 vehicles in the federal government’s fleet; in 2021 President Biden has promised to replace them all with electric vehicles.
- And under current pledges by states, cities and urban transit agencies, at least a third of the nation’s nearly 70,000 public transit buses will be all-electric by 2045
The North American market is expected to grow at an amazing CAGR of 27.5% through 2027. Manufacturers will not be able to keep up with demand. Tier I & II manufacturers in all component areas are already being sought for acquisition.