The owner of a sheet metal fabrication company experienced significant growth with some of his large customers. He knew that he needed to invest in two new lasers to keep up with the growing demand on that equipment. The new equipment would require space, and the employees would need training, yet his facility and labor force was already approaching capacity. The new investment would also create a new line of debt, and while the debt itself was not appealing to the owner, he realized that purchasing the equipment alone would not solve his problems.
The owner considered acquiring an existing sheet metal operation with updated laser equipment, trained employees, and additional space.