The owner of a contract manufacturing metal fabrication company experienced significant growth with some of his large customers. While the backlog was increasing; delivery dates were being extended, and he had a difficult time recruiting skilled employees at any price. The operating demands required new investment in equipment and additional production space. The company’s largest customer was growing and required a vendor with the capability to support their production needs.
Our client needed a quick solution, or he was in danger of losing his most significant customer.
The owner wanted to explore the possibility of buying a competitor with updated equipment, existing skilled labor, and a building with additional capacity. In other words, a contract metal fabrication company that had an underperforming asset that could handle the overflow of work from his customers. The idea was that it was faster, cheaper, less risky, easily bankable, and his customer would gain more confidence to meet delivery schedules.