This edition of the M&A digest highlights the specifics of selling a manufacturing business, a list of valuable resources you’ll need when you’re locating business buyers, mistakes to avoid when selling and pitfalls to avoid when creating a family succession plan. To wrap up the discussion, we focus on private equity’s dry powder phenomenon.
“[O]ver the last few years in many parts of the country manufacturing has begun to show signs of a revival. On-shoring has become popular as companies recalibrate their business plans in the light of rising labor costs overseas, coupled with increased shipping costs and ongoing quality control issues.
These circumstances are making manufacturing businesses in North America very attractive. This is good news for owners of privately held companies; however, to find an optimal buyer who will pay a premium for your business, you need to still do your homework and prepare your business to be ‘buyer ready.’”
Which resources will help company owners find business buyers? Which types of buyers should owners focus on? The answers to these questions and more.
Generational Equity executive VP of M&A gives us his thoughts on the future of M&A activity and what sellers need to know.
“[I]t is extremely important to follow a professional process to ensure that you avoid all of the five mistakes that too many business owners make when they sell their companies.”
“The decision toa family-owned enterprise can be very emotional. It is a decision that must be made soberly and thoughtfully, and it must include all key members who have a stake in the decision.”
“The subtitle of the research piece said it all, ‘Too Much Dry Powder, Too Few Deals?’…Nearly $400 billion is sitting out there waiting to find great companies to invest in. The really great news for business owners in the U.S. is that most of these funds are focusing on investing in companies located in North America.”
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