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 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!

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