Articles

Owners: Keep your eye on your equity!

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Precision machine shop owners are experiencing high demand for their services. With the economy re-opening orders are piling up. One of the biggest problem is keeping up with that demand. However, that does not necessarily mean business is destined to continue to get more valuable as revenue grows. This article explores this topic and encourages precision machine owners to consider the big picture.

Managed Service Providers: Part 2

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As we discussed in the previous blog, there is a growing trend of small and medium-sized businesses outsourcing their IT functions to Managed Service Providers, or MSPs, for reasons of cost, time efficiency and technology support and expertise. While the MSP sector is large, highly profitable and growing rapidly, it’s also highly fragmented, with more than 20,000 companies in North America offering a wide variety of IT services. That creates M&A opportunities for MSPs looking to expand their menu of services, increase market share and diversify revenue streams.

Managed Service Providers: Part 1

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Graphic: Managed Service Providers 1

Small and medium-sized businesses (SMBs) have historically relied on in-house IT support, but there is an emerging trend of these companies outsourcing their IT functions to Managed Service Providers, or MSPs. The MSP sector is large, highly profitable and growing rapidly, with the market expected to reach more than $300 billion in five years.

However, …

Don’t Fear Private Equity: Misperceptions Overlook Positive Impact

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Over the course of my career, I’ve been involved in a lot of different roles, from technician to general manager, to owner and operator of multiple shops, then as a seller when our company was acquired by a large consolidator in 2015, and as a representative and consultant assisting with both sales and acquisitions of collision repair businesses.

FOCUS Investment Banker Michael McGregor Discusses Tire Dealership M&A

In the wake of COVID-19, you might be wondering if merger and acquisition (M&A) activities at the tire dealership level have kicked the bucket. According to MTD research, rumors of that demise have been overstated. Just compare last year's MTD Top 100 list of the biggest independent tire dealerships in the United States to this year's MTD 100.
multiple 100 dollar bills stacked on top of one another

A2Z Manufacturing: Is This the Competitor You Should Really Be Worrying About?

Merger and acquisition activity has accelerated in the precision machining industry due to the confluence of three fundamental technological and market forces.
  • Large capital inflows from private equity funds
  • Automated, digital manufacturing processes
  • Digital integration of the supply chain
The capital required to simply stay competitive is likely to soon leave a substantial portion of the industry field behind. The average firm owner may not yet have felt a serious impact, but complacency about the changes underway will threaten the competitive position of many industry participants and can have a serious impact on the equity they have taken years to build. Owners must recognize and confront pro-actively the building pressures for exploring a non-organic growth model.