GP Ventures’ Tom Kastner on PCB Mergers and Acquisitions
It’s always interesting talking with Tom Kastner, president of GP Ventures, because he has his finger on the pulse of our industry’s mergers and acquisitions (M&A) more than anyone. He knows which companies are selling, buying, or thinking about it. Most of the time, he is so buried in non-disclosure agreements (NDAs) that it’s difficult... Read More →
Keys to Avoid Key Person Risk
PCB West is next week in the San Francisco area, can you go to the show and maybe visit a winery or two without the shop falling apart? If not, you have key person risk. Have you not taken a vacation in 3 years, and spent this past Labor Day doing board re-work? Is so,... Read More →
Beware of Customer Concentration Risk
One of the biggest risks in M&A is customer concentration risk. It is hard to avoid as a business owner; if a customer is giving you orders, you generally take them! The next thing you know, your customer has 90% of your sales and they own you. We see this a lot in both the... Read More →
“Dealing” with Family Businesses
Some families may have spent this past Father’s Day discussing family business issues, including when, how or whether to pass the baton. There are several issues to consider when dealing with a family business. An owner may have started the business with the idea of passing it along to their kids. This model used to... Read More →
SlingShot Assembly Acquires BEI Electronics
Friday, May 4, 2018 – (Denver, CO and Franksville, WI) SlingShot Assembly continues to alter the landscape of U.S. PCB assembly with the acquisition of Wisconsin-based BEI Electronics. The combined company provides a unique offering of ultra-fast, high-quality prototype assembly integrated with higher volume PCB assembly and related product services. Both facilities will remain... Read More →
How to Prepare for a Smooth Post-M&A Deal Transition
Selling a company is an exciting process, as well as time-consuming, stressful, and complex. Both sellers and buyers are sometimes so caught up in the deal that they forget to properly plan the post-deal integration. The buyer certainly has an incentive to conduct a smooth transition, as they are looking to benefit from the acquired... Read More →
Cross Border Deals: What to Look for and How to Manage
My firm has been approached by foreign firms several times this year and in 2017 who want to acquire PCB, PCBA, or other electronics companies in North America. This could certainly be a trend in the future. There are a wide variety of reasons why overseas firms would like to acquire a shop in North... Read More →
Top 10 M&A Deal Killers
I am often asked about some of the reasons why M&A deals die. Although this is a very painful subject, hopefully through sharing these reasons we can help some deals survive the M&A process. Here are my top 10 M&A deal killers (and some of the solutions). 1. Seller’s revenue and/or profits drop while in... Read More →
Survey on State of the North American PCB M&A Market
Recently, my firm surveyed about 20 PCB manufacturers in North America with an estimated greater than $10 million in revenue. Quite a few replied, and we have spoken with many others throughout the year, which gives us a good view on the state of the PCB market. If I did not contact your shop recently,... Read More →
PCB/PCBA Sector M&A Top 10 FAQs
We talk with owners a lot about the possible sale of their businesses. Here are the top 10 questions asked by PCB/PCBA shop owners about the process: 1) What is the value of my business? For companies in the PCB/PCBA sector, companies generally sell in the 4−6 times adjusted EBITDA range. Some companies sell for... Read More →