How the Right Advisor Can Optimize the Sale Value of Your Fabricated Metal Business

January 31, 2024

The unassuming metal parts that power our lives originate from the fabricated metal industry, a sector shaping everything from soda cans to the cars we drive. But beneath the surface, a revolution is brewing. Automation, once the domain of giants, is now rattling the doors of family-owned shops, forcing a transformation that has reshaped the entire fabricated metal landscape. 

While it can feel daunting, that change also spells opportunity for owners looking to exit their metal fabrication businesses as well as larger firms looking to acquire the in-house fabrication capacity they need. 


A Shrinking Landscape, Growing Opportunities

Traditionally dominated by small, family-owned shops, the fabricated metal sector is undergoing a profound shift. Gone are the days when skilled hands alone guaranteed success. Today, scale and efficiency reign supreme, and larger firms with advanced automation are gobbling up market share and leaving smaller, manual shops scrambling. Just like the steel it shapes, the industry is being forged anew, with larger, regional, tech-savvy players emerging as dominant forces.

Amidst this industry transformation, business owners have plenty of opportunities to take advantage of higher multiples and stronger valuations of their firms, but there are also pitfalls to avoid. 

If you’re the owner of a smaller metal fabrication company, you’ve no doubt had the phone ringing off the hook with tempting-sounding offers. But falling prey to the siren song of the first offer and tempted by the promise of an easy exit, some owners are leaving money on the table. In fact, we estimate that- at best- there’s about a 90% chance of the phone offer being the wrong choice for your business. While accepting the easy offer may seem tempting, you’re likely leaving money on the table.  


Trust the Process

At NuVescor, we’ve witnessed firsthand the pain of rushed exit strategies. We believe the key to a successful sale lies in a process that helps business owners identify the strengths and weaknesses of their firms, take proactive steps to improve their marketability, and identify the right buyer (not just the first one):  

  • Prepare your business for the future: The companies seeing the highest multiples are those that buyers assess as having the greatest potential. In this market, which means businesses that are some ways through the automation process, have a diversified client base, and have contracts that will continue beyond the sale date. Buyers also want to see the capacity for growth, so it’s important that you don’t put improvement plans on hold or max out your capacity while waiting for offers. 
  • Find the right buyer: While there are plenty of buyers right now, not all of them will be right for your business. Taking steps to Identify a buyer that aligns with your vision will maximize your return. 
  • Strike the perfect deal: The goal is to negotiate terms that protect your interests, whether it’s a structured sale, earn-out, or all-cash deal. The advantage of working with advisors is that we understand the nuances of the deal opportunities and can help translate that knowledge into optimal outcomes for you. 

The fabricated metal industry is evolving. And selling your metal fabrication business can be a rewarding journey. With the right knowledge and guidance, you can forge a deal that shines as brightly as your craftsmanship.


How NuVescor Can Help

We’ve helped numerous fabricated metal businesses leverage their strengths to achieve remarkable growth and secure lucrative exits. We handle everything from valuation and buyer identification to discreet negotiations and seamless deal closure so you can focus on your well-earned retirement or next venture. 

Ready to seize the opportunities? Contact NuVescor today.