Making the Process Easy (M&A Process Engineering)
We all like to work with companies that make it easy and enjoyable to do business with. Whether we are buying an iced coffee or a car, we like to have a quick, easy, hassle-free experience. As business owners, we try to keep our customers happy, and we like to buy from suppliers who are... Read More →
Mid-2017 Report on the State of the N.A. PCB M&A Market
One of the most popular questions we receive concerns the market for M&A. Here is our take on the current market for PCB shops in North America. In general, the PCB market in North America is not growing, which means that to grow, shops either must take market share from others, or grow through acquisitions.... Read More →
Acquisitions in Interconnect Space/Partnership with Bishop & Associates
M&A Consolidation continued in the first few months of 2017, with cross border deals grabbing the headlines. Several of the deals showed a strategy of geographic expansion, while others were for expansion into new products and end-user markets. Consolidation is expected to continue, as corporate and private equity cash is plentiful, borrowing rates are low,... Read More →
Bridging the Valuation Gap Between Buyer and Seller
PCB acquisitions in the U.S. are down so far in the first five months of 2017, with only two announced deals (HT Global Circuits’ acquisition of Pho-Tronics in April; American Standard Circuits’ acquisition of Camtech in May); and one anonymous deal that I am aware of that has not been announced. This compares with 11... Read More →
How to Put a Wrench in the Rumor Mill During the Sale of a Company
When selling a house, the owner’s agent puts a sign in the front yard, posts info on the Web, and invites buyers over for an open house. When selling a car, we put a sign on the windshield and take out an ad with our phone number on it. However, when selling a business, some... Read More →
Selling a Company—Seeing it as a Triumph, Not a Defeat
Somehow, there is a still a stigma that selling a company is a negative for the owner. Many people think that there must be something wrong, otherwise, they would not be selling. In reality, exiting a business should be looked at as a triumph for the owner, not a defeat. In both the PCB and... Read More →
10 Ways to Increase the Value of Your PCB/PCBA Shop
I have worked with a wide range of companies in the PCB, PCBA, and other tech and electronics sectors. Through the years, I have developed some ideas on how companies can improve their valuation. Some of these ideas are simple and involve little cost, other ideas are more long-term and involve more effort or investment.... Read More →
Types of Company Buyers in the PCB and EMS Sectors
Mergers and acquisitions in the U.S. PCB sector have been in the news recently, with at least 12 deals completed over the past year, and several more in the works. In contrast, the EMS sector has been relatively quiet, but that may change now that the presidential election is over. In this sector, there... Read More →
Punching Out! When Should I Call an Investment Banker?
The quick answer is ASAP. Even if you are not considering the sale of the company for 5−10 years, it is best to be educated and prepared. Give your advisor (or a few advisors) a call to discuss what can be done to get the company ready for a future sale. The worst time... Read More →
Pre-Marketing Strategic Advisory Services, or as we call it, ‘Grooming’
By Lester McCarroll, Jr., Managing Director and Client Architect and Tom Kastner, President GP Ventures offers Grooming services to its clients. One of the top questions we receive is, ‘What is Grooming?’ Grooming consists of pre-marketing strategic advisory services. We often meet company owners who wish to engage our firm, but the company is not... Read More →