The manufacturing industry enjoys growth despite labor shortages, supply chain problems, and economic woes. 2023 holds many opportunities for the sector to capture more growth and turn risks into positives. Following the COVID-19 pandemic, supply chain issues are finally on track to ease this year. This is due to improved production and transportation capacity and replenishing inventories.

No matter what business you are in, we all know that life becomes much easier when we have our finances in order. Whether preparing for Tax season, doing an audit, or ensuring that your business is operating at its highest potential, having accountable financials is vital. This becomes especially true when you are trying to sell your business. Not only do your financials need to make sense to you, but they need to be as attractive as possible to potential buyers. A key to making this financial transition as smooth as possible lies in the hands of one person: your bookkeeper. 

After a very active year in 2021 and a reasonably robust market in 2022, M&A deal-making in the healthcare sector will soar in 2023 thanks to much corporate cash and private equity sitting on plenty of dry powder. Healthcare and health services companies are expected to actively explore M&A, divestitures, and other types of transactions, making it an attractive marketplace for parties.

We are proud to announce that our very own Brittney Zoeller, Global Creative & Brand Strategy Director at Benchmark International, has been named among the Top 10 Inspiring Women Leaders of 2023 by Industry Era Women Leaders magazine.

The global industrial distribution market was valued at $7.72 trillion in 2022 and is forecasted to reach $11.93 trillion by 2032, growing at a compound annual growth rate (CAGR) of 4.5%.

How do Economic Conditions affect the Lower Middle Market? 

The lower middle market is typically defined as companies with an enterprise value (EV) between $5 million and $100 million. A range of factors, including economic conditions, interest rates, and availability of financing, influences M&A activity in this market segment. In recent years, lower middle market M&A has been driven by several factors, including a strong economy, low-interest rates, and the availability of financing. Here are a few ways that current economic conditions can affect M&A activity in these key industries:

Benchmark International is pleased to announce that Cire Airos (Pty) Ltd. has successfully acquired controlling interest in Northridge. 

Mergers and acquisitions (M&A) have come a long way since the days of tedious paperwork and manual processes. The evolution of technology has revolutionised the M&A landscape, making the once paper-intensive process more cost-effective, streamlined, and efficient. 

Don’t Delay

As a business owner, an exit plan is critical to preparing you and your company ready for retirement or your next act. Unfortunately, many business owners do not realize the importance of exit strategies, so they don’t feel like it’s worth taking the time to craft one. This is often a huge mistake. It doesn’t matter if you do not plan on selling or retiring soon. However, it’s wise to have an exit strategy for several reasons. 

If you are considering selling your company, you have several options for pursuing the sale, and you have quite a few decisions to make. And this is a journey you do not want to take lightly. You’ve worked so hard to build your business. When you sell it, you want everything right to get the value you deserve. In addition to extracting value, you want the process to be as painless as possible. These are the reasons you should consider having the representation of a reputable mergers and acquisitions firm. Partnering with the right M&A advisor can significantly affect your sale price. 

Benchmark International is pleased to announce the transaction between Integrity 1st, Inc and OneDigital, a portfolio company of Onex. This transaction creates a strategic expansion into the Colorado insurance market. 

In today's competitive business landscape, mergers and acquisitions (M&A) have become a strategic tool for companies to achieve their corporate objectives. This is because M&A can offer companies various opportunities, such as expanding into new markets, gaining competitive advantage, accessing new technologies, and achieving economies of scale. So let's explore how M&A can be crucial to attaining corporate strategy.

Benchmark International’s client Corptemps, Inc., is a staffing company located in Niles, Ohio. They have a fierce reputation for providing high caliber candidates to the manufacturing, warehousing, heavy industrial, clerical, and food production industries for over 20 years. They have become an integral part of the business community by assisting with screening, hiring, and human resource needs.

Benchmark International is delighted to announce the transaction between Redruth-based Feritech and Swedish-based Addtech Industrial Solutions, a business area in the Addtech Group.

The agreement is for 90% of the shares outstanding in Feritech.

Feritech designs, manufactures, and supplies turnkey engineering solutions for the geotechnical and subsea sectors through its extensive in-house manufacturing capabilities. Headquartered in Cornwall, the company has 21 employees and a turnover of approximately GBP 4.5 million.

C4 Laboratories (a provider of cannabis testing services) was recently acquired by SC Labs. SC Labs is a licensed and accredited cannabis testing agency with locations spanning: California, Colorado, Michigan, Oregon, and Arizona.

Benchmark International is pleased to announce the acquisition of Manchester-based Gottlieb by national packaging and labels services company, Macfarlane.

Established in 2001, Gottlieb is a supplier of packaging materials, hygiene products and warehouse equipment to a broad range of sectors including clothing retail, printing, and logistics.

Gottlieb, owned by A & G Holdings Ltd, has an experienced team of 15 employees, including two directors, all of whom will remain with the business following the acquisition.

Headquartered in Glasgow, Macfarlane is a listed company that was established in 1949. The company employs more than 1,000 people at 37 sites, principally in the UK, as well as in Ireland, Germany and the Netherlands. In 2022, Macfarlane reported revenue of 290.4 million GBP.

The acquisition highlights Macfarlane’s ‘buy and build’ strategy, aimed at delivering further stakeholder value. Meanwhile, Gottlieb’s customers will also benefit from the deal through Macfarlane’s range of protective packaging products and services.

The global equipment rental industry is rapidly expanding, with the global market size forecast to reach $120.7 billion by 2027. The equipment rental industry is set to experience significant growth in the coming years and is becoming an increasingly important part of the global economy.

Owner’s compensation is a key feature that is addressed in various ways in a CIM. Some variables affect how owner’s compensation is treated in a CIM. Some of these variables include how much salary the owner is receiving, the role of the owner in the business currently, and the owner's role following a transaction. Combining these variables will determine how owner’s compensation is addressed in the CIM. A key point that must be known is that distributions do not affect adjustments to owner’s compensation. Distributions do not affect the income statement of the business, so they are not to be considered when making adjustments for owner’s compensation adjustments.

Benchmark International is proud to have been honored with two new M&A Atlas Awards from the Global M&A Network:

• Industrial Services Deal of the Year as sell-side advisor for the sale of ARC Abatement to West Fork IP, an affiliate of Fernandez Holdings
• Consumer Services Deal of the Year as sell-side advisor for the sale of Classic Emporium, LLC, to Champion Xpress Car Wash

As well as understanding the fundamentals and financial aspects of any offer for your business, understanding ‘your buyer’ is critical to the success of the deal and your ongoing relationships post-completion. Whilst it’s not possible to know your buyer ‘warts and all’ at the start of the process, your team at Benchmark International will work with you throughout the process to build your buyer knowledge.

Step by step, we will work with you to ask the right questions at the right time, providing you with the information you need to make the all-important decision of who is the right buyer for your company, for your employees, and for you.

Several elements play into a successful merger or acquisition, from finance to sales and from operations to HR. Leading up to a transaction, it’s not uncommon for business owners to focus more on these elements and not the area of marketing as an important part of their M&A strategy.