Acquisition Services
|METAL FABRICATION
|STAMPING
|MILLING
|LASER CUTTING
|TOOLING
|OEM
Acquisition Services
The game is changing for small metal manufacturers as customers continue to demand more and more from their suppliers.
Old business models need to be adjusted, and metal manufacturers need to become more efficient and versatile to compete in the future. For these small business owners to win more business, or to keep their existing business, they need to provide their customers with a broader range of services.
The additional pressures for lower costs, faster delivery times, increased production capacity, and higher quality standards all add-up to require change. The necessary growth demands more working capital. It creates additional financial and execution risks involved in implementing initiatives such as new QC certifications, attracting, training and retaining additional skilled labor, software upgrades, new capital equipment, and other improvements needed to meet customer demands.
There are only two ways to make changes to meet your customer’s demands, organic growth, or growth through acquisitions. Many of our clients find it faster, cheaper, and less risky to buy a company with an existing skilled labor force, upgraded systems, updated equipment, existing customers and cash flow with predictable gross margins, than it is to organically grow their business to meet their customers’ demands.
Our Value Proposition
Next Point specializes in helping clients acquire metal manufacturing businesses.
Finding the right deal that fits your acquisition strategy requires industry knowledge, not just transactional knowledge. At Next Point, we talk to hundreds of buyers and sellers in the metal manufacturing industry every month, and thousands every year; we have a unique insight into the evaluation criteria and metrics particular to this industry.
Utilizing experienced advisors with industry-specific knowledge is important for a higher probability of getting a deal done. A general M&A firm does not have this specialized knowledge.
We understand that transactions need to align with your market strategy, capital structure, cash flow requirements, and risk tolerance. Next Point will work with your team to craft a deal structure to meet your investment criteria.
Our acquisition service provides business owners with a robust depth of knowledge and experience that a proactive acquisition strategy requires.
Process Driven
Finding the right deal that fits your acquisition strategy requires a proactive process to seek out targeted acquisition opportunities.
Next Point provides an experienced acquisition team and a proven process to search out the RIGHT strategic opportunity to help grow your company and leverage your strategic need in the most accretive way possible.
An acquisition project begins with developing your acquisition specification to describe the ideal target acquisition for your company. The spec aims to identify the ideal characteristics or “value drivers” of a target acquisition that could most directly impact your businesses’ competitive advantage or value proposition. This spec establishes an investment model, with risk, effort, and reward assumptions.
Next, we focus on developing a list of target candidates that fit your acquisition profile. Our M&A team has extensive experience in contacting acquisition targets to bring them to the table.
We can introduce companies that are not actively on the market for sale, but whose owners are interested in selling. We contact each approved prospect to qualify their interest in selling, initiate a dialogue, and create a basis for moving forward.
We proceed to evaluate the financial, organizational, and operational synergies in order to determine what gaps may exist when compared to your specific acquisition criteria.
Better Sellers, Better Results
We have developed a proprietary database of over 25,000 companies. This list is not a list you can buy, but one that we cultivated over the last 20 years.
We know the ownership, the type of work the company completes, the equipment that they own, and the industries they serve. When we work on an acquisition project, we scrutinize the companies in our database to find the right fit with your acquisition criteria and strategy.
We Negotiate From A Mutual Gains Approach
We start with honest, straightforward dialogue. Negotiations begin with identifying what success looks like for both sides.
Next Point utilizes a mutual gains approach to bridge the gap between buyers and sellers. Our negotiation strategy presents creative ways to approach deal structure so the result is a win-win for all parties.
We identify critical issues up-front. We work directly with your legal team and CPA firm to mitigate legal risk and tax consequences.
Acquisition Team For Rent
Next Point can fill in the execution gaps in your acquisition strategy with our a-la-carte services for business owners who may only require certain steps of the process.
Some clients only need us to introduce opportunities and they can take it from there. Others already have a target and only need assistance with developing valuation models, deal structure options, financing models, or help finding financing. Some need help with due diligence and negotiations through to closing, and some may need assistance with integration plans after a transaction is complete.
Depending on your needs, Next Point can plug-in just to provide the services you and your team require.