Working in Manufacturing M&A nationally, I speak with business owners every week. They all tell of receiving dozens of emails, phone calls, and letters each month from M&A professionals who want to sell their businesses.
All claim to have experience, and many do. But the real question is, do other M&A professionals specialize in manufacturing?
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 be able to see the same type of possible synergies, thus reaching the best and most complete target market to acquire my business?
- If a buyer seeks 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 to potential buyers about my company’s manufacturing process?
- How well-known is this intermediary or broker within the manufacturing community?
Another critical question is whether the M&A professional specializes in founder-led and family-run entities. Why does this matter? Family-run and founder-led manufacturing companies have concerns that others might not have, such as:
- Will the company remain in the community post-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 in 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 or family-run companies have an additional layer of concerns that a private equity seller might not have.
If you’re a manufacturer ready to retire, ask yourself if the M&A intermediary or broker you’re considering hiring is skilled at finding buyers who will fulfill the above requirements AND has a history of getting great financial results. You want BOTH.
Specialization matters in Manufacturing M&A. It’s not just sector specialization but also the types of buyers the firm is known for attracting.
It really is possible to sell to someone you trust will:
- Keep the jobs in the community
- Respect your legacy
- Grow the business & provide future opportunities for your staff
You can achieve the above AND sell at a number you’ll be thrilled with.
Reach out today to learn more!