Why we buy and invest in manufacturing businesses
As proud small business owners ourselves as well as investors who see the value of long-term capital that is strategically employed in the American economy, we see no better option than buying and investing in US based small and mid-sized businesses.
We elected manufacturing as an industry to focus on because of the increase of technology in the industry, lack of marketing skills, residual income and lack of other investors in the marketplace.
We have found that there are several businesses that we see as being very well run that have no other acquisition opportunities besides selling to us or taking investment from us. Typically, the businesses we invest in are too small and slow growing for large pension funds and private equity firms. Because we are a small shop and don’t have investors to answer to, we are still able to invest in these stable, slow growth companies.
A narrow focus on US based companies
We invest in what we know. In the words of Warren Buffet “Never bet against America.”
While the majority of manufacturing has moved to China, our capital never has. We invest in what we know, and the spirit of the American worker has never failed us. Because of this, we are proud to say that all of our investments to date have been in US based businesses with US based employees.
What type of manufacturing companies do we buy?
We see ourselves as fairly agnostic when it comes to which manufacturing sectors we focus on. With that said, we are investors. We typically try to avoid businesses with wasted capital, slow turning inventory, seasonal products or other cash eating businesses.
Sectors we have looked at in the past and will likely be investing in at some time in the future:
- Construction products
- Basic materials
- Industrial equipment (this is a favorite)
- Nich consumer items
How do we manage the manufacturing business ongoing?
All of the businesses we acquire are large enough to support a full management team. We will enable them by providing them with the resources, strategies, software and oversight to be successful. We also believe in compensating key employees generously with equity. We believe that a well trained and well motivated staff is a businesses best resource.
If you are looking to sell your manufacturing business, we are the people to talk to. Fill out the valuation form below to tell us a bit about your business and we’ll be in touch if it is something we are interested in acquiring.
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Average growth for the past 3 years
How populated is the region where your business is based
Do you have residual customers that makeup the majority of your business?
Do you have a tenured management team in place
How clean are your books and records
What assets are needed for your industry
Does the business own or lease its real estate?