In the following podcast interview, Matt Roberson, a Principal with SC&H Capital, discusses the top five tips for helping manufacturers best position themselves for a liquidity event in today’s Mergers & Acquisitions (M&A) environment.
You are a manufacturer contemplating an acquisition or thinking about raising capital to fuel growth — but are you in a solid position to obtain the best business valuation or to attract multiple buyers?
The combination of affordable capital, lowered borrowing rates, and a resurgence in interest from strategic buyers and private equity firms is creating a competitive M&A environment — and causing valuations for manufacturers to rise tremendously.
The good news is that preparing your business for a capital raise or for an acquisition is not as challenging as it may seem.
In making your business as attractive as possible to potential investors or buyers, there are some questions you should consider:
- Are you leveraging Intellectual Property to create barriers for competition?
- Have you established strong financial and operational processes?
- Are your products, customers, and suppliers adequately diversified?
- Are you taking advantage of modern manufacturing processes and technologies?
- Do you have strong visibility into growth and revenue?
Be sure to listen to the full podcast interview. Matt takes a deep dive into these questions and provides critical guidance for manufacturers considering a liquidity event.
Bowles Fluidics Corporation is a manufacturer who followed these key principles, and was sold to Morgenthaler Private Equity. SC&H Capital served as the exclusive financial advisor to Bowles in this transaction, which was named the 2015 “Deal of the Year” by the Association for Corporate Growth (ACG) – Maryland Chapter.
Are you a manufacturer seeking additional insights on how to best position yourself for an acquisition or to receive funding? Please contact Matt Roberson here if you are interested in discussing your growth goals and liquidity objectives.
SC&H Capital’s merger and acquisition (M&A), employee stock ownership plan (ESOP), capital raising, and business valuation solutions have assisted companies nationwide and across numerous industries. By leveraging its investment banking expertise, industry relationships, and extensive tax and consulting resources, SC&H Capital helps owners achieve their exit planning goals, liquidity plans, and growth objectives. Learn more here.