Manufacturing Today - August 2017 - 16
B UY AMERICAN
A LFAB INC.
COLUMN BY | BILL ROSIN
first step. Does a private-equity sale
make sense for your manufacturing
company, or would a more traditional strategic transaction be a better fit?
Every business is different, and every
leadership team or decision-maker
has his/her/their own set of personal
and professional circumstances to
consider, but there are certain consistent factors that should be taken
into account when evaluating whether a private equity sale makes sense
Regardless of any board or business's preferences and priorities, a
good place to start is with the funda16
manufacturing-today.com AUGUST 2017
mental question: what's the point?
In other words, what is the motivation behind the sale, and what is the
ultimate goal of those with a stake in
Private-equity transactions might
be a good fit for an energetic manufacturing owner/operator who wants
to remain an active and engaged part
of the operation, for example. Private
equity buyers are more likely to preserve the existing management structure and tend to prioritize continuity
when it comes to running the business.
Along those same lines, private equity
buyers are also more likely to rely on
the existing management's insight and
experience when it comes to making
decisions in the wake of a sale.
Private equity buyers are buying to
sell, and are typically more than happy
to keep a successful business humming
along smoothly without expending unnecessary resources to make a change
for the sake of making changes. Strategic buyers are almost exactly the opposite: they are far more likely to make
Leadership changes, big employee
restructuring, repositioning assets
and even relocating the business are