Feedback on manufacturing focused searches?

by a searcher

4 years ago

I've been considering starting a search and I'm evaluating sectors. The thing that I keep hearing is to focus on service-based sectors and avoid things like manufacturing. I'm curious to know why that is? I know service-based operations have higher margins but manufacturing businesses seem exciting as well. 

I'm also curious if there is a list somewhere of the different types of industries/sectors to look at?

2 likes
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9 comments

searcher from University of California, Irvine

I'm sure others have mentioned but I do believe high CAPEX and steep learning curve are what stop most searchers from entering traditional manufacturing. But light manufacturing is still very attractive in my opinion.

3 years ago | like reply | 0 likes

professional from Stanford University - Graduate School of Business

There have been very few search acquisition in traditional manufacturing over time. Likely due to the expertise (as you mentioned) and the capital intensity.

3 years ago | like reply | 1 like

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