Eckhart, an LFM Capital Portfolio Company, Acquires Logic Plus

Eckhart, an LFM Capital Portfolio Company, Acquires Logic Plus

Eckhart, an LFM Capital Portfolio Company, Acquires Logic Plus

LANSING, MI – March 19, 2018 – Eckhart, Inc. announced today that it has acquired Logic Plus, a premier electrical controls and automation company based in Northern Michigan. Eckhart designs and manufactures advanced manufacturing solutions for the world’s largest industrial companies. Eckhart’s suite of solutions includes Autocraft™ autonomous guided vehicles, automated assembly systems, robotics, 3D printing, contract line design & simulation, and specialized ergonomic assembly line tools and equipment. Eckhart has been a portfolio company of Nashville-based LFM Capital since 2015. Logic Plus is Eckhart’s third acquisition. NuVescor Group, a West Michigan based mergers and acquisitions firm, represented Logic Plus and introduced the investment opportunity to LFM Capital.

Logic Plus, founded by Jody Zolman in 1987, specializes in custom electrical controls design and integration for a variety of end markets including consumer packaged goods, food, medical, pharmaceutical, and waste water treatment. Logic Plus is a UL certified electrical panel builder that delivers the highest quality electrical panels available in North America. With over 200 customers across all major industrial regions of the world, Logic Plus has the experience and technical depth to solve the most difficult electrical controls related problems.

Jody Zolman, founder of Logic Plus, commented, “For over 30 years, we’ve committed ourselves to delivering the highest quality products and services to our customers. No matter the challenge, our team embraces science and technology to deliver real value to our customers. From artificial intelligence, to autonomous vehicles, to smart factories, and more, our team of technical experts is committed to creating safer factories that produce better quality at higher levels of productivity.” Jody continued, “I was seeking business partners committed to being good stewards of the business that I founded on my family farm. I chose to partner with LFM Capital and the Eckhart team because of their commitment to grow and expand our business in Northern Michigan and their genuine interest in the long-term success of all employees.”

Eckhart President & CEO Andy Storm said, “This acquisition enables Eckhart to rapidly accelerate the deployment of Industry 4.0 technologies that are shaping the smart factories of the future. Logic Plus brings diverse customers and industries poised for long term growth around the world. With over three decades of experience serving the pharmaceutical, life sciences, and waste water treatment industry, Logic Plus enhances our ability to scale and grow our controls, robotics, and automation-based suite of solutions in non-cyclical markets projected to expand steadily over the next quarter century.”

About Eckhart, Inc.

With over 60 years of experience and based in Warren, Michigan, Eckhart engineers advanced industrial solutions that enhance the quality of life. Eckhart’s proven portfolio of advanced manufacturing technology includes Autocraft™ autonomous guided vehicles (AGVs), collaborative robotic systems, traditional robotics, contract assembly line design & simulation, 3D printing tool development & production, and ergonomic general assembly tooling solutions for the world’s largest manufacturers. Eckhart serves an established and loyal, blue-chip customer base of leading automotive and industrial original equipment manufacturers that include Stryker Medical, General Electric, Ford, Tesla, PACCAR, John Deere, Bradford White, and Caterpillar. For additional information, please visit www.eckhartusa.com.

About Logic Plus

Founded in 1987 and based in Reed City, Michigan, Logic Plus is a UL certified electrical control cabinet and automated controls design and integration solutions provider. Logic Plus serves a broad range of industries including pharmaceutical, electrical battery, plating & anodizing, waste water treatment, food, automotive, and garage door production. Core competencies include custom designed and manufactured control systems, programmable logic controllers, process control automation, human machine interface, and automated material handling solutions. Logic Plus customers include Nestle, Cargill, Herman Miller, Coca-Cola, General Mills, and CertainTeed Corporation. For additional information please visit www.logicplus.net.

 

 

 

About LFM Capital

LFM Capital is a Nashville-based private equity firm focused on private lower middle-market U.S. manufacturing and industrial services companies with outstanding growth prospects. LFM currently manages a $110 million private equity fund that targets lead or control investments in market-leading niche manufacturing and industrial services companies with enterprise values in the range of $15 million to $75 million. The LFM team is led by experienced and successful Fortune 50 global executive managers and private equity professionals who bring decades of management leadership, operating best practices, exceptional professional recruiting networks, and a successful track record in lower middle-market investing. LFM partners with management teams to drive business value through a combination of manufacturing and operations excellence, world-class executive management, and targeted growth and expansion strategies. For additional information, please visit www.lfmcapital.com.

About NuVescor Group

NuVescor is a distinguished mergers and acquisition service provider headquartered in West Michigan and serves clients throughout Michigan and the Midwest. Their passion is discerning and exceeding client expectations through successful and timely business transactions. NuVescor offers a complete array of professional buy and sell-side business brokers services, which includes corporate M&A outsourcing, to a growing network of clientele. For additional information, please visit www.nuvescor.com

For further information, please contact:

Dan Shockley, Managing Director

LFM Capital, LLC

dan@lfmcapital.com
(615) 620-5134

 

Andrew P. Storm, President & CEO

Eckhart, Inc.

astorm@eckhartusa.com
(517) 321-7700

 

 

Media Contact: Andrew Storm, Eckhart, Inc. 517-321-7700, astorm@eckhartusa.com

How to Sell Your Business: 7 Sell-Side Tips for Every Industry

How to Sell Your Business: 7 Sell-Side Tips for Every Industry

How to Sell Your Business:
7 Sell-Side Tips for Every Industry

When contemplating a business sale, focusing on key drivers of value can produce more favorable terms and a higher price. Those include:

  • Growth: buyers rarely want to invest in stagnant or declining businesses.
  • Earnings: An earnings multiple is almost always the key determinant of value. Selling more and spending less are ultimately the drivers of a higher sale price.
  • Technology: The technology your business owns or creates can offer a lot of value, particularly if it’s patented. Speak with an IP attorney to explore whether a patent is an option.
  • Other intangible measures: A good partner channel for sales, a hard-to-access market segment, or a unique product can all increase your value. Strategic buyers are especially likely to highly value these factors.

So what if you’ve already optimized these value drivers? Seven simple strategies can help you get the best price for your business:

Timing
Carefully time the sale of your business. You want all key value drivers on your side, and heading upward. Consider also the larger market, and your investors’ desire for liquidity. Selling in a low interest rate market can lead to higher values for financial buyers, while a high stock market often fetches a higher price from strategic buyers. When the two forces combine, you may get the highest possible price of all.

Don’t DIY
Selling a business is a complicated undertaking, and you’ll likely only do it once. A skilled advisor adds significant value, so choose your advisor wisely. Don’t try to manage the many moving parts of a deal by yourself.

Consider a Different Lawyer
Your general counsel may be great at what they do. M&A demands a completely different skill set. Don’t default to a lawyer you know, or the general counsel you employ. Hire a specialist. The other side will have a skilled team of experts. Shouldn’t you?

Plan for Due Diligence
Buyers won’t go in blind. They want to verify what you say. Due diligence can be a long and intensive process. Unpleasant surprises can destroy a deal, and may greatly reduce the value of your business. Preparing now can help you address any issues with your business. Having your paperwork ready now will also shorten the timeline from due diligence to a final sale.

Set Realistic Expectations
You might have big dreams for your business or its sale. But sky-high expectations can come back to haunt you. Set expectations that are realistic and match the demand of the market. A good advisor can assist with comparing a business valuation with the current state of the market. This can ultimately increase the value of your business, and establish trust.

Know the Value of Trust
Your rapport with the buyer may matter more than any other factor. No matter how clear your legal documents are, it’s still possible for either side to harm the other. A good working relationship with someone you like and trust motivates both parties to behave fairly. A buyer may be more willing to offer favorable terms when they trust and like you.

Relax
Some things are beyond your control. Deals are filled with highs and lows. Control your emotions, or they will dictate your decisions. Plan what you can. Ask for help from experts. And then get back to the business of running your business. A smooth-running enterprise is always and everywhere the best driver of value. So don’t allow deal preparation to steal your focus.

Looking Back and Looking Ahead

Looking Back and Looking Ahead

Looking back at 2017 and ahead towards 2018

2017 was a year of change! With the changing political climate we saw activity in the M&A markets increase and create a market characterized by fierce competition and a surplus of capital, resulting in median EBITDA multiples in mid-market M&A hitting unprecedented levels. The forecast for 2018 is for this trend to continue and creates a great environment to sell a business.

With our completed restructuring in our sister companies, NuVescor and Rua Associates, we are poised for our strongest year yet serving our clients in 2018. With our uniquely better process, the Rua Transaction Process, we have seen successful outcomes for our sellers in 2017 with some amazing results. We look forward to this continuing trend in 2018 with a strong pipeline and talented staff.

This is a great time to be a seller, and we look forward to helping all of our clients achieve outstanding results in 2018!!!

Taking care of the little things

Taking care of the little things

Taking care of the little things…

There is a saying that goes, “If you take care of the little things, the big things take care of themselves.” I am not proposing that we ignore the big picture items, the key milestones or the end state we are striving for. I am saying that by paying attention to the little details that can trip up a transaction, it makes meeting the milestones a much easier process.

What are some of the little details in a transaction? There are a number of them that can go from a little detail to a large delay, and with some planning and preparation, they become easy boxes to check. Some of these are specific to Michigan based businesses.

  • Form UIA 1027, Business Transferor’s Notice to Transferee of Unemployment Tax Liability and Rate. This is used by the seller to disclose any issues that could affect current or future tax rates, and must be disclosed for the most recent 5 years. It is a misdemeanor not to disclose to the buyer.
  • Form 5156, Request for Tax Clearance. Used by the seller to have the Michigan Department of Treasury provide known or estimated tax liability for the purpose of establishing a tax escrow, if any. The request must come from the seller and after the transaction is complete a new request is submitted to obtain a certificate for the release of an escrowed funds.
  • Articles of Incorporation with Amendments, Bylaws, Certificate of Good Standing. These will be requested during the due diligence phase and copies should be confirmed, up to date, and made available.
  • Start early to understand the scope of insurance needed, and have an insurance agent ready to review and requote if needed. This process does not take long but should not be overlooked or delayed until the last minute.
  • Environmental Due Diligence. If there will be Real Estate involved in a transaction a Phase 1 will typically be a requirement of the funding source. If a Phase 1 has been done in the past, having an electronic copy available will save time and energy when it is requested. If the Phase I is out of date, the information provided in the Phase 1 will expedite an updated test or refresh as needed.

This is by no means an exhaustive list of the items needed to be done during a transaction. It is a short list of small details that are important and easy ones to stay ahead of. Having a process in place and an experienced team to facilitate that process results in successful transactions.

In first deal, PE firm Concurrence Capital invests in Holland automation firm

In first deal, PE firm Concurrence Capital invests in Holland automation firm

In first deal, PE firm Concurrence Capital invests in Holland automation firm

This article was originally published by MiBiz October 1, 2017.

GRAND RAPIDS — A West Michigan-based private equity firm closed on its first deal with an investment in Holland-based Mission Design & Automation LLC.

The deal with the 13-year-old producer of automation systems for the automotive, office furniture, medical and consumer goods industries came about five months after Concurrence Capital Holdings LLC formed.

“We couldn’t have picked a better first opportunity. Everything kind of matched up really well,” Jason Byrd, a co-founder and managing partner at Concurrence Capital, told MiBiz in an exclusive interview. “This is going to be a really nice deal because of who we’re partnering with.”

Concurrence Capital targets long-term investments in middle-market, family-owned businesses involved in manufacturing and business-to-business services with sales of more than $5 million, plus $1 million to $8 million in EBITDA.

In Mission Design & Automation, the private equity firm invested in a business that’s been averaging annualized growth of 50 percent over the last few years. The company was actively seeking growth capital and willing to take on an investor, and its management team wanted to remain intact to run the business and grow.

M&A firm NuVescor Group LLC of Grand Rapids represented Mission Design & Automation and introduced the investment opportunity to Concurrence Capital, Byrd said. Terms of the deal, which closed this past spring and was just now announced, were undisclosed.

Byrd and co-founder Michael Brom sifted through about four dozen prospective deals since April and were “very serious” about three, Byrd said. He describes the first deal as a “true partnership consistent with our investment parameters.”

Started in a pole barn by Loren Brouwer in 2004, Mission Design & Automation employs more than 25 people. The company operates out of a 21,000-square-foot facility southeast of Holland.

Brouwer said in a statement that he’s known Brom for more than 20 years. Mission Design & Automation began working on a deal with Concurrence Capital soon after the firm launched in April.

“When I learned that he and a partner had started Concurrence Capital Holdings, I thought they would be an ideal partner to support Mission in our next stage of growth,” Brouwer said.

Brouwer and co-owner Jon Maust will remain with the company, which is “well-positioned for even greater growth as the automation industry continues to flourish,” Brom said.

Of the deals Concurrence Capital has looked at since forming, two-thirds came forward through Byrd and Brom’s professional networks.

Byrd described the present deal flow as “solid.”

Deals typically take six months to complete from introduction, and Byrd said the firm could close another by the time it hits is first anniversary next spring.

“But we are focused on finding the right deals,” he said. “We feel very good about where we find ourselves.”

Prior to forming Concurrence Capital, Byrd worked at Grand Rapids-based M&A and investment banking firm Charter Capital Partners. Brom was CFO at Huizenga Group, a family office for the family of J.C. Huizenga.