by John Howe
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, particularly on the upper end. Manufacturing and business services dominate.
The source of this update is Private Equity Info, a research source we consult on virtually every deal. The April sampling follows. This is not intended as a complete list. These are highlights:
• Clearlake Capital Group
Acquired Wheel Pros (Denver, CO, US), a designer, marketer, and distributor of branded automotive aftermarket wheels, performance tires, and accessories.
• Gamut Capital Management
Invested in International Automotive Components Group S.A. (Luxembourg, LU), a global supplier of automotive components and systems, including instrument panels, console systems, door panels, headliners and overhead systems.
• Stellex Capital Management
Acquired Fenix Parts (Westchester, IL, US), a recycler and reseller of OEM automotive products.
• HGGC
Invested in HelpSystems (Eden Prairie, MN, US), a provider of systems and network management, business intelligence, and security and compliance solutions.
• Silversmith Capital Partners
Invested in Validity (Boston, MA, US), a global provider of a data integrity and compliance offerings.
• Technology Crossover Ventures & Welsh, Carson, Anderson & Stowe
Invested in Avetta (Irvine, CA, US), a provider of cloud-based contractor risk management and compliance software.
• Arable Capital Partners
Acquired Fresh Innovations (Oxnard, CA, US), a processor of fresh sliced apples and other packaged fruits.
• Gauge Capital
Recapitalized American Nuts (Sylmar, CA, US), a value-added supplier and processor of nuts, seeds, and dried fruit.
• Main Street Capital Corporation
Acquired California Splendor (San Diego, CA, US), a processer of a variety of organic and conventional fruits for blue-chip customers in both the consumer packaged goods and foodservice sectors.
BTS News
Manufacturer Sold and New Owner Expands It
BTS served as advisor in the sale of PlasTech Machining Fabrication, Inc. to DelCam Holdings in 2020...the company has grown substantially, doubling employment and adding capacity to boost future prod
How M&A Will Respond to Next Recession
The takeaway for business owners: Get back to basics. Don’t worry about hyper growth. De-risk your company as much as possible.
Perception vs Reality with Small Businesses
Sometimes the economic picture on the news seems inconsistent with what is happening for many business owners. Nearly every owner we speak to is out straight.
NH-Based Techinical Manufacturing Company Sold
Hampshire Controls has a bright future with new ownership. The company was recently sold by Diane Rush, owner and president, to Pillar Imaging and its leader Dr. Michael Pilon.
Be Ready When You Are Ready
When a business owner says it’s time to sell, I ask, “How fast do you want to be out?” The answer I hear most is, “Yesterday.” But sellers underestimate how long the process takes.
Looking at a Sale Through the Right Lens
Sometimes our vision about the future is blurry because we aren’t considering the whole picture but only parts of it.
5 Deal Points from the Trenches
Today I work with clients of Business Transition Strategies who are implementing Growth Through Acquisition strategies. Here are a few observations from working on a wide variety of projects.
Tax Changes Could Hurt Net Proceeds
Changes proposed to the capital gains tax suggest they may need to get 30% more in a transaction in the future just to net the same value they would get today.
Good Ideas From Shark Tank Deal
One of my colleagues in Cornerstone Alliance was front and center in a recent Shark Tank exercise. A business that had been sold was put in front of four potential buyer groups.
Buyer Trends in Lower Mid-Market
Other businesses are a significant market for companies being sold within the lower mid-market.
Case Studies
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.