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Why Specialization Matters in Manufacturing M&A

M&A Specialization Matters
⏱ Reading Time: 2 minutes

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 opportunity 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 opportunity for your staff

You can achieve the above AND sell at a number you’ll be thrilled with.

Reach out today to learn more!

About Frances Brunelle

Frances Brunelle is the founder of Accelerated Manufacturing Brokers, Inc., which specializes in the sale of lower middle-market manufacturing companies nationally. Fran and her team help to ensure the continuity of U.S. Manufacturing by transitioning ownership to the next generation of entrepreneurs. Recently Fran was named to 2020 Most Influential Women in Mid-Market M&A (Mergers & Acquisitions). Fran is also the host of the WAM (Women and Manufacturing) podcast, a Jacket Media production. Fran writes on topics that help manufacturing business owners prepare their companies for sale and navigate the sale process to ensure a positive financial result in support of their retirement.

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