Why Sell to a Private Equity Group?
PCB/PCBA owners often think that a short list of strategic buyers (companies in the same industry) are the only ones who would be interested in acquiring their company. One category of buyers that is often overlooked is private equity groups (PEGs). Owners either think that their company would not be of interest to a non-strategic... Read More →
Beware of Cultural Issues in M&A Deals
Company culture is hard to define and manage, but it is a critical factor in making an M&A deal successful. It is also often ignored or misunderstood during and after due diligence because culture is a “soft” science instead of a “hard” subject like finances, legal contracts, IP, or accounts receivable, among other things, which... Read More →
Creating PCB Industry Giants and Mid-majors Through Acquisitions
In December, 2018, Summit Interconnect announced the acquisition of Streamline Circuits. Summit itself was created in 2016 through the merger of KCA and Marcel, and is backed by a private equity firm. In the PCB and PCBA industry, TTM Technologies is the giant King Kong of acquisitions, growing from just $80 million in revenues 20... Read More →
Avoid Surprises During the M&A Process
No one likes surprises, especially in merger and acquisitions (M&A) deals; there are enough unknown variables to start with. As the deal progresses, tensions start to rise, so any additional variables can cause a disproportionate response. Below are some ways to avoid surprises, and how to deal with them when they come up. The best... Read More →
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 →