Precision Component Manufacturing Experience

searcher profile

March 06, 2023

by a searcher from University of Colorado at Boulder in Newport Beach, CA, USA

Has anyone successfully acquired a manufacturing biz in the $1M-$2M EBITDA range who would be willing to share lessons learned along the way? Kicking off a search and would like to talk through industry learning curve, overcoming customer concentration, growth lever opportunities realized, and hiring skilled labor. Thanks.

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commentor profile
Reply by a professional
from Villanova University in West Chester, PA, USA
A few important considerations from the legal perspective are manufacturing, distribution and supply chain contracts, and the quality of those and the flow of obligations and rights so they don't create cash flow issues or production issues; key man employee contracts; real estate matters such as assumption of a lease or a new lease as well as the factors ^redacted‌ mentioned above. Would be happy to discuss this further. ‌
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Reply by a professional
from Boston College in Baltimore, MD, USA
Collin, on the legal side, we've supported a number of lower middle market manufacturing and distribution acquisitions and divestitures (fewer precision component deals specifically). ^redacted‌'s comments align with my experience.‌ I'd add to the list a couple often overlooked legal issues: export control/compliance, hidden govcon issues (FAR flow downs in POs and subcontracts) and E&O inventory.
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