Metal manufacturing
The logical buyer would be a strategic industry player with the ability to leverage the company’s attributes to improve overall financial performance. Strategic Buyers are often looking to break into new markets and industries.
The logical buyer would be a strategic industry player with the ability to leverage the company’s attributes to improve overall financial performance. Strategic Buyers are often looking to break into new markets and industries. It is often easier to buy a customer list than to develop customers organically in new sectors such as aerospace and medical. Strategic buyers may have already made investments in new equipment and technology; their strategy might be to buy a book of business to add customers with known sales and gross margins to help support their debt service.
With a strategic buyer in mind, we built a “Pitch Deck” describing our client’s attributes, financial history, backlog, organizational structure, production capabilities, equipment list, industries serviced, customer types and length, and strength of customer relationships. Filtering Next Point’s proprietary database of over 24,000 companies in the metal manufacturing industry to include regional, national, and Canadian strategic buyers with revenues at least three times greater than our client’s income produced the following results: Over 12,000 strategic buyers in the USA in Canada. Three hundred forty serial strategic buyers with a history of multiple transactions in the metal contract manufacturing space. Thirty-five regional strategic buyers within a 50-mile radius of our client that were actively looking for new acquisitions. Marketing the company required casting a wide net to find the right buyer. We aim to run a time-sensitive process, asking interested buyers to submit a letter of Intent by a deadline so that we have the opportunity to compare offers.
Over forty-five companies signed NDA’s and reviewed the information on our client, and we ultimately received six letters of intent. Next Point helped our client to analyze each offer to select the most attractive scenario for his retirement goals. Our client sold the company to an industry consolidator and was able to retire after a brief transition period.
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