Articles

FOCUS Investment Banker Michael McGregor Discusses Tire Dealership M&A

Automotive Aftermarket Investment Banking

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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?

Advanced Manufacturing and IT Investment Banking

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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. 
businessmen using smart devices with an illustration of app icons displayed over the image

The Future of Independent Precision Machining

Advanced Manufacturing and IT Investment Banking

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Made in America! That’s the watchword of our precision machining industry, which is enjoying a major upturn driven by the need for ever more sophisticated components required to support new technologies in manufacturing, automation, life sciences, aerospace and defense. Most shops we visit report good revenue growth and many see more new business opportunities than …

Photo: The Endless Summer of M&A - Surfers

The Endless Summer of M&A?

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Over fifty years ago in the late 1960’s filmmaker Bruce Brown gave us his cult classic surfer documentary The Endless Summer. The film chronicles the journey of two young professional surfers who circumnavigate the globe chasing summer through both the northern and southern hemispheres in search of the elusive “perfect wave.”

As we enter the summer of 2019, the comparison to the M&A market today seems appropriate. Are we in the “endless summer” of super charged M&A activity and valuations? We have been experiencing an almost unseen level of M&A activity over the past four years and one can’t help but ask….when (not if) will it end?

Graphic: Expanding the Climate for Middle Market M&A Success in 2019

Expanding the Climate for Middle Market M&A Success in 2019

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As many FOCUS colleagues know, the firm celebrated its third consecutive record-breaking year in 2018, closing 28 deals across 10 industry segments. As we approach the first half of 2019, we continue to demonstrate our proven expertise, both across the wide range of sectors we cover, and in the depth of strategic services we deliver on behalf of our clients. Plus, first quarter 2019 results prove dealmakers see plenty of solid reasons for optimism for the remaining three quarters.
hand with drawn illustration of stairs and an arrow pointing upwards

Growing to the Next Level—Rainmaker LISBON Summit 2019

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The 30th M&A Worldwide Rainmaker LISBON Summit, held April 4-5 in Lisbon, Portugal included 278 people from 40 countries—breaking all previous attendance records for the prestigious event.

Like the MIAMI Summit hosted by FOCUS in November 2018—as well as previous Summits in Amsterdam, Barcelona, London, New Delhi, Warsaw, and Shanghai—the LISBON Summit united corporate deal makers from across the globe, stimulating discussion around ongoing transactions, as well as the latest trends in research, deal software, and process management.

ESOP from an Adopter’s View

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It is very likely that you have been approached by advisors over the years suggesting you consider selling your business to an ESOP, an employee stock ownership plan. Interestingly enough, FOCUS recently adopted an ESOP in December 2018 to execute our own long-term transition plans, and we thought our perspective on this ownership structure (as both an advisor and recent adoptee) might be helpful to you.
Employee Stock Ownership Plans (ESOP)

Is Now the Right Time to Consider an ESOP?

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FOCUS adopted an ESOP, an employee stock ownership plan, form of corporate structure late last year. We decided to implement an ESOP as it afforded our partners an opportunity to redeem their capital accounts, but kept our existing organization intact without any changes to our culture, organization, benefit plans or management team. In effect, the ESOP allowed us to maintain our business model and procedures exactly the same as prior to the transaction. In so doing, FOCUS joined nearly 7,000 other companies who have made the decision to establish an ESOP.
multiple red jets flying in a line with one ahead of the pack

M&A Action Plan: Full Speed Ahead!

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In 2019, we believe the middle market will continue to be a robust, dynamic space for dealmakers, offering buyers and sellers an expanding climate for success. Plus, an impressive number of major surveys and report support our thesis.