Manufacturing Opportunity: Look Where Others Aren't

The Deal

Key Takeaways

• 1Shift focus from proprietary deal sourcing to broker-intermediated transactions to increase certainty of close and prevent seller cold feet
• 2Simplify deal structures rather than creating multiple contingent pieces to appeal to small business sellers uncomfortable with complexity
• 3Be willing to accept imperfect businesses with lower gross margins if underlying operational issues can be systematically addressed with day-one interventions
• 4Understand seller psychology: they have a target valuation in mind regardless of structure, so focus on simplicity and certainty of timing rather than trying to negotiate valuation down
• 5Look for backlog and recurring patterns of customer orders as proxy for recurring revenue in project-based manufacturing

Matched SBA Loan Records

SBA loan filings we matched to this deal