Finding a Distressed Manufacturing Business for Sale
Discussion
Speak to insolvency practitioners. You should be able to roughly marry up the size of business you want to buy with the size of the IP firm. Try to get on their distribution list but expect that to be hard with no track record (I assume). Most mid size and below work fairly regionally which will help you.
Be prepared to be able to at least name your preferred lawyer and due dilligence accountant to help stoke interest (along with funding and business rationale) . Otherwise you'll just be lumped with all the other hopefuls.
Be aware most firms, particularly larger ones, will prefer to deal with a recognised investment fund or existing market participant. Nothing dodgy, just being reistic as there are a lot of chancers out there who are very capable of wasting their time.
The market for transactions is actually relatively quiet at the moment although there's normally a pre summer blip before silence over summer hols.
In my experience the bigger firms (high mid tier plus) are much better at this assuming your looking for a business rather than just picking from the bones of a carcass.
Best money is currently to be made from a group divesting of noncore companies on the cheap.
Proper distress is a challenge as external influences mean many distress are too far gone and killed their supply chain and customer relationships before they finally hold their hands up. Unless you're already in the market with your own relationships that can provide an insurmountable hurdle. I've seen supplies play nice and supportive until the investment has been made and their ransom payment received, and then severed ties which can be catestrophic.
Be prepared to be able to at least name your preferred lawyer and due dilligence accountant to help stoke interest (along with funding and business rationale) . Otherwise you'll just be lumped with all the other hopefuls.
Be aware most firms, particularly larger ones, will prefer to deal with a recognised investment fund or existing market participant. Nothing dodgy, just being reistic as there are a lot of chancers out there who are very capable of wasting their time.
The market for transactions is actually relatively quiet at the moment although there's normally a pre summer blip before silence over summer hols.
In my experience the bigger firms (high mid tier plus) are much better at this assuming your looking for a business rather than just picking from the bones of a carcass.
Best money is currently to be made from a group divesting of noncore companies on the cheap.
Proper distress is a challenge as external influences mean many distress are too far gone and killed their supply chain and customer relationships before they finally hold their hands up. Unless you're already in the market with your own relationships that can provide an insurmountable hurdle. I've seen supplies play nice and supportive until the investment has been made and their ransom payment received, and then severed ties which can be catestrophic.
sleepezy said:
Speak to insolvency practitioners. You should be able to roughly marry up the size of business you want to buy with the size of the IP firm. Try to get on their distribution list but expect that to be hard with no track record (I assume). Most mid size and below work fairly regionally which will help you.
Be prepared to be able to at least name your preferred lawyer and due dilligence accountant to help stoke interest (along with funding and business rationale) . Otherwise you'll just be lumped with all the other hopefuls.
Be aware most firms, particularly larger ones, will prefer to deal with a recognised investment fund or existing market participant. Nothing dodgy, just being reistic as there are a lot of chancers out there who are very capable of wasting their time.
The market for transactions is actually relatively quiet at the moment although there's normally a pre summer blip before silence over summer hols.
In my experience the bigger firms (high mid tier plus) are much better at this assuming your looking for a business rather than just picking from the bones of a carcass.
Best money is currently to be made from a group divesting of noncore companies on the cheap.
Proper distress is a challenge as external influences mean many distress are too far gone and killed their supply chain and customer relationships before they finally hold their hands up. Unless you're already in the market with your own relationships that can provide an insurmountable hurdle. I've seen supplies play nice and supportive until the investment has been made and their ransom payment received, and then severed ties which can be catestrophic.
Thanks that's useful insight. Much appreciated.Be prepared to be able to at least name your preferred lawyer and due dilligence accountant to help stoke interest (along with funding and business rationale) . Otherwise you'll just be lumped with all the other hopefuls.
Be aware most firms, particularly larger ones, will prefer to deal with a recognised investment fund or existing market participant. Nothing dodgy, just being reistic as there are a lot of chancers out there who are very capable of wasting their time.
The market for transactions is actually relatively quiet at the moment although there's normally a pre summer blip before silence over summer hols.
In my experience the bigger firms (high mid tier plus) are much better at this assuming your looking for a business rather than just picking from the bones of a carcass.
Best money is currently to be made from a group divesting of noncore companies on the cheap.
Proper distress is a challenge as external influences mean many distress are too far gone and killed their supply chain and customer relationships before they finally hold their hands up. Unless you're already in the market with your own relationships that can provide an insurmountable hurdle. I've seen supplies play nice and supportive until the investment has been made and their ransom payment received, and then severed ties which can be catestrophic.
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