by John Howe
Laconia-based ODM acquired by Ripley Tools
Evidence continues to mount that companies are buying other companies to grow, and that does not necessarily solely involve mega mergers or equate into a dismantling of founder-run operations.
An example of this is the just-announced acquisition of a New Hampshire firm by a Connecticut company.
Laconia-based Optical Design Manufacturing, Inc. has been acquired by Ripley Tools, LLC of Connecticut. The announcement was made Jan. 3 by Ironwood Capital, owner of Ripley Tools. The move is intended to enhance Ripley’s market position with ODM products.
ODM's entire operation, including technical service, customer service, design and production will remain in Laconia for the foreseeable future, according to the announcement. Ripley Tools is located in Cromwell, Conn.
"I am pleased to have the opportunity to work with Ripley Tools in growing the ODM testing equipment product line and I'm excited to integrate ODM into the Ripley brand portfolio," stated Michael Schneider, ODM Inc. founder and president. Founded in 2003, the company produces optical power meters, laser and LED light sources, inspection scopes, optical fiber identification instruments, optical time-domain reflectometers and full testing kits.
Mergers and acquisitions don’t just involve large corporations. Increasingly, we are seeing companies in the lower end of the mid-market buying competitors or those that would be synergistic to their core operations. We were not involved in the ODM deal, but it is an excellent example of this point. We encourage owners to recognize the trend and take advantage of strong current demand. Capital for deals is plentiful. Contact us for a discussion.
We believe strongly that companies in the lower mid-market represent excellent targets for acquisition, and that’s why we focus on working with founders who are considering transitioning through a sale. A sale helps owners achieve liquidity, but also can preserve jobs and opportunity.
Business Transition Strategies largely represents selling entities and their founders, and a significant segment of our process is on identifying strategic and synergistic buyers.
This was true with the sale of MacDiarmid Machine of Newburyport, Mass. to Potentia, a partnership seeking to develop a manufacturing hub north of Boston. It also was true with the sale of Lake and Mountain Home (Euro Decora) to Bingham Lumber.
We also are currently helping companies grow through acquisition, including the recent sale of the Albany, N.Y. division of Cryo Weld and New Hampshire-based Angier Welding Supply to Haun Welding Supply of Syracuse, N.Y. Haun made the moves to increase its market reach in upstate New York, Vermont, Northern Pennsylvania and western New Hampshire.
"The entire process went smoothly and professionally. The BTS team kept me fully informed at every step. They worked hard and were effective in bringing the deal home."
"Skip and I continue to be grateful for all you have done to make the sale of Pure Flow come to fruition."
"BTS’s level of expertise in the process and close attention to detail enabled us to successfully navigate the deal."
"These types of transactions are often long and complicated and I doubt it could have been successfully completed without your close ongoing involvement."
"The outside objective point of view that you have brought us has been invaluable as we prepare for the rapid growth."
"John then found the right buyer and coordinated a seamless transition—he doesn’t miss a single detail."
"John immediately identified our strengths and experiences and discussed a business that ultimately was more in line with our goals."
"The BTS team came in, evaluated everything in a professional and thankfully non-threatening manner."
Looking Back to Plan the Future
As one year closes; another is just beginning. It is an excellent time for company owners to consider the options for what is next.
Growth Through Acquisition in the Lower Mid-market
Growth through acquisition has been a strategy largely used by mid-sized and larger companies for years. Now firms in the lower mid-market are getting into it as well.
PEI Cites 8 Attributes of Quality Deals
Quality deal flow is among the top concerns for M&A advisors. A recent blog posted by Private Equity Information offers 8 key attributes of “quality deals.”
In an M&A Program: Why Consider a Business “Carve Out”?
An M&A program need not be limited in the search to the complete acquisition of a company.
The BIA Report on Consumer Confidence
"NH consumer confidence remains high" according to the latest BIA Survey conducted October 10 and October 18, 2018 by the UNH Survey Center.
Business Transition Snippets
Here are a few observations we culled from sources we regularly review that relate to business transitions.
What to expect in the LOI exclusivity period
A question that often emerges when reviewing proposals for acquisition with owners is the exclusivity period.
Growth through acquisition isn't just for the big companies
Growth through acquisition Is a valid strategy for businesses in the lower mid-market as well as the mid-market.
The exit decision- timing and issues
When should a business owner start thinking about planning their exit? Early! This is a high-stakes decision and should not be first contemplated when it is imminent.
April PEG investments
It is interesting to watch trends in private equity investments. In general, they reflect confidence in the value of making things. Transactions give insights on the broader acquisition environment, p
Precision Machining Company
Initially, liquidation was a serious consideration. It would offer a quick exit but would hurt loyal employees and disrupt the customers who had come to rely on its quality production.
Green Product Company
Our client owners could dig in for the long haul…However, this would take five years or more. Owners simply lacked the horsepower to do it.
Water Purification Company and Young Buyers
Owners decided they wanted to retire. They also wanted to be fair to the staff who had been loyal to them. Could the company be sold, the staff retained and the facility remain in use?
Magnetics Company with High Profile Customers
(T)he manufacturer would need to focus on growing EBITDA to capture interest from major strategic buyers and achieve a higher multiple of earnings.