SOLD! Industrial Controls and Manufacturing Business
Industrial Controls Design & Manufacturing business #1037, serving the southeast Wisconsin area and been in business for 11 years, was recently sold for $643,000. The company generates an annual revenue of approximately $1 million and is growing by engineering and developing over 100 industrial control products for a variety of industries such as food processing, chemical, power, and others for industrial and commercial customers.
The acquirer, was attracted by the anticipated growth of this industry for industrial controls used for process manufacturing and the need for automation, the customized engineering of niche products, and the excellent customers which results in recurring revenues for the company. Larry Heck, who brokered the transaction, says “This acquisition was a good fit for both parties.”
M&A Expectation in the New Year
Now that the year is coming to a close, what can we expect and hope for in 2017? Will a new administration help mergers and acquisitions in the business world? Some of the post-election chatter is projecting this will be good for domestic M&A. Right after the election, in early November, Bloomberg .com posted that Trump’s win is a positive for M&A overall. A Financial Times article quoted Eric Siegel, a corporate lawyer at Dechert, “Trump is a life-long dealmaker. Combined with the Republican Party platform, that bodes well for the deal environment generally.
In early December, Fortune posted an article about the telecommunications industry having a sense of excitement as they expect the incoming Trump administration will likely be more agreeable to mergers and acquisitions.
Two of the main reasons that the environment has the potential to be more favorable for consolidation: First is the lower corporate taxes that President-elect Trump has promised will free up capital that companies can spend on acquisitions. And second, is the scaled-back regulatory environment would help M&A deals that may have otherwise been obstructed.
In the next thirty days we’ll see how this all plays out, but hoping to a prosperous New Year for all!