Featured on Automation.com: From Shop Floor to Boardroom: How Automation is Transforming Manufacturing Deals

Featured on Automation.com: From Shop Floor to Boardroom: How Automation is Transforming Manufacturing Deals

Featured on Automation.com: From Shop Floor to Boardroom: How Automation is Transforming Manufacturing Deals

September 9, 2024

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As Featured on Automation.com: This article by Randy Rua was recently published as a featured article on Automation.com, a leading online publisher of automation-related content.

Article Summary

In today’s competitive environment, manufacturing companies are facing mounting challenges, including supply chain disruptions, rising operational costs, labor shortages, and geopolitical instability. To combat these issues, many are turning to automation technologies like robotics, AI, and machine learning. This shift is not only transforming operations but also reshaping the M&A landscape. Companies with advanced automation capabilities are becoming more valuable, attracting potential buyers and investors.

Automation is driving efficiencies in maintenance, material handling, and real-time monitoring, improving scalability and “future-proofing” businesses. In addition, M&A processes themselves are being streamlined through automation, from deal sourcing to strategy development. As automation continues to evolve, it will be a key factor in driving manufacturing M&A activity through 2025.

 

Read the full article here

 

About the Author: Randy Rua is the president of NuVescor, a leading provider of mergers and acquisitions services for manufacturers in Michigan and beyond. For more information, contact Randy at rrua@nuvescor.com.

3380 Chicago Dr, Hudsonville, MI 49426
616-379-4047

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How an Automation Company Strengthened US Presence with Strategic Acquisition of Niche Material Handling Manufacturer

How an Automation Company Strengthened US Presence with Strategic Acquisition of Niche Material Handling Manufacturer

How an Automation Company Strengthened its US Presence with Strategic Acquisition of Niche Material Handling Manufacturer

April 30, 2024

Coesia done deal nuvescor

Coesia, a global leader in the automation industry, has acquired Automation & Modular Components, LLC (AMC, LLC), a well-known manufacturer of material handling automation systems. Facilitated by NuVescor Group, this strategic move is set to significantly bolster Coesia’s presence in the US market, particularly in the battery sector and broad-spectrum material handling applications.

Based in Davisburg, Michigan, AMC has carved out a niche for itself in the automation landscape. The company’s expertise lies in the production of material handling automation systems with integrated controls, as well as conveyors that seamlessly fit into assembly systems and production lines. AMC’s diverse clientele is a testament to its versatility, with the company catering to a plethora of industries, including Automotive, Food, Medical, Appliance, Metalworking, Electronics, Packaging, Munitions, Parts Processing, Glass, Pharmaceutical, Alternative Energy including Solar, Container Handling, Household Products, and Assembly & Material Handling.

Alessandro Parimbelli, CEO of Coesia, expressed his optimism about the acquisition, saying “We are glad to welcome AMC into our Group, and we consider this company a strategic asset for the development of FlexLink.”

The acquisition of AMC is a significant step forward for Coesia, and for its subsidiary FlexLink. AMC’s heavy-weight conveyance systems are set to enhance and expand FlexLink’s robotic and material handling expertise.

Dick Shore, AMC’s former owner, is equally optimistic about the company’s future under Coesia’s leadership. He’s confident that Coesia/FlexLink is the perfect fit for AMC to continue its growth trajectory and expand its global footprint.

Shore stated, “Coesia with FlexLink is the perfect home for AMC to continue on its growth path and further expand its global presence, continuing to help companies in over 25 industries across six continents to produce goods faster, with more consistency.”

Coesia’s plans for the future are ambitious, with the Group aiming to continue investing in automation technology. The sector’s attractive growth prospects make it a lucrative avenue for Coesia’s inorganic and organic growth, both in the United States and globally.

Randy Rua, President of NuVescor, the M&A advisor for AMC, lauded the company’s unique capabilities in the manufacturing space. He stated, “AMC is a wonderful business with unique capabilities in the manufacturing space. We wanted to find the perfect fit to allow them to continue to grow in that space.”

The acquisition of AMC by Coesia is a strategic move that aims to benefit both companies. AMC’s expertise in material handling automation systems and Coesia’s global leadership in the automation industry are a winning combination.

Learn more about the transaction here

How Automation is Redefining Market Value for Manufacturing Businesses

How Automation is Redefining Market Value for Manufacturing Businesses

How Automation is Redefining Market Value for Manufacturing Businesses

The global manufacturing sector is undergoing a transformation, fueled by the rapid advancements in automation technology. As companies strive to remain competitive, the integration of automation has become more of a necessity rather than an option. However, the transition is not always straightforward, especially for established manufacturers with substantial investments in traditional equipment. This brings to light intriguing dynamics, particularly when it comes to mergers and acquisitions (M&A) in the manufacturing realm.

The Automation Imperative

Manufacturers are increasingly recognizing the need for automation to stay competitive. Automation not only optimizes operations but also significantly reduces the dependency on human labor, a concern amplified by the current labor market conditions. The trend isn’t merely a response to labor shortages but a strategic move to enhance efficiency, reduce operational costs, and ultimately, bolster the bottom line.

The M&A Landscape: A Two-Sided Coin

The convergence of automation and M&A unveils a two-fold scenario. On one hand, there are established manufacturers, often run by owners who are hesitant or financially constrained to transition towards automation. They face a dilemma: invest in automation to increase their company’s valuation or sell at a lower price point due to their technological lag.

On the other hand, prospective buyers, especially those with a long-term vision, see a golden opportunity. They can acquire these traditional manufacturing entities at a lower valuation, invest in automation, and potentially reap significant benefits as the sector continues to evolve.

The Seller’s Dilemma: To Automate or Not?

For sellers, the decision is tough. Investment in automation requires not only capital but a shift in operational mindset and possibly, a complete overhaul of their existing processes. It’s a significant undertaking, especially for those nearing the end of their professional journey. The fear of obsolescence and decreasing business valuation due to lack of automation readiness is real. Yet, the capital and effort required for automation can be daunting.

The Buyer’s Perspective: Seizing the Automation Advantage

Forward-thinking buyers understand the automation advantage. They are willing to acquire traditional manufacturing companies, infuse capital, and transition them into modern automated entities. This strategy can be particularly appealing as it allows buyers to enter the market at a lower valuation, with a clear pathway to increase the company’s worth through automation.

Bridging the Gap: Finding the Right Buyer

Whether a manufacturer has transitioned to automation or still relies on traditional equipment, the key to a successful future is finding the right buyer that best suits the business. Building a manufacturing organization from the ground up is a monumental feat, and it’s critical that the buyer understands the manufacturing industry, values the business created, and is committed to preserving the owner’s legacy. Equally important is making sure the buyer will further the company’s goals and unlock its future potential.

The automation wave is reshaping the manufacturing landscape and, by extension, the M&A dynamics within the sector. As the industry transitions, understanding the unique challenges and opportunities this presents to both sellers and buyers is crucial. Tailored M&A structures that address the concerns of sellers while providing a clear automation roadmap for buyers may well be the key to successful deals in this evolving landscape.

Unlocking Maximum Value: A NuVescor Case Study in Automation M&A

Unlocking Maximum Value: A NuVescor Case Study in Automation M&A

Unlocking Maximum Value: A NuVescor Case Study in Automation M&A

The automation industry is evolving at an unprecedented pace, making M&A transactions in this sector particularly complex and high-stakes. At NuVescor Group, we specialize in facilitating these transactions with a strategic approach that maximizes value for both buyers and sellers. Our recent case study offers a deep dive into how our specialized team and meticulous process led to a significant increase in the sale price of an automation company

A Glimpse into the Case Study

The case study revolves around an automation company that we prepared for sale over a span of 60 days. Our team of experts worked on various aspects of the sale process, from market research to buyer outreach and negotiation. The result? A sale price that exceeded initial valuation expectations.

Key Highlights

Valuation Expectations: Our extensive experience and substantial buyer database allowed us to set an initial valuation expectation for the company in the range of $3.5 to $4.5 million.

Buyer Interest: Within two weeks of launching the project, we received overwhelming interest from more than 80 potential buyers. Our team swiftly filtered and qualified these buyers, ensuring alignment with the seller’s valuation criteria.

Skillful Negotiations: Through strategic negotiations, we managed to increase the purchase proposals to approximately $5 million, exceeding the expected range.

Download the full case study here

Why Choose NuVescor?

Our specialized focus on the automation industry and strategic approach to M&A transactions set us apart. We understand the intricacies of this rapidly evolving sector and align buyers and sellers who share a common vision for innovation and growth.

For more information on how NuVescor can assist you in your M&A objectives within the automation industry, contact us or book a meeting with Randy.

On-Demand Webinar: The Future of the Automation Industry: Is It Time to Buy or Sell?

On-Demand Webinar: The Future of the Automation Industry: Is It Time to Buy or Sell?

On-Demand Webinar

The Future of the Automation Industry: Is It Time to Buy or Sell?

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On-Demand Webinar: The Future of the Automation Industry: Is It Time to Buy or Sell?

The automation industry is at a pivotal moment. Technological advancements, rising labor costs, and an ever-increasing need for productivity and quality are driving unprecedented growth. As the market expands, business owners within this sector face a critical decision: Is now the time to buy or sell?

Join NuVescor for an insightful webinar that explores the current market trends and factors influencing the decision to sell an automation business. Whether you’re approaching retirement, seeking new ventures, or simply curious about the future of the industry, this webinar is tailored for you.

 

What You Will Learn:

  • Market Trends: Understand the latest developments in the automation industry and how they impact your business.
  • Buy or Sell Decision Making: Gain insights into the factors that should guide your decision to buy or sell in the current market landscape.
  • Expert Perspectives: Hear from others as they share their experiences and insights on navigating the automation market.
  • NuVescor’s Approach: Learn how NuVescor’s sell-side services can support automation business owners considering a profitable exit while preserving their business legacy.

Presented By:

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Randy Rua
President, NuVescor Group
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Randy provides vision, leadership and extensive knowledge to guide NuVescor confidently towards its goals. He first experienced the M&A industry when he decided to purchase a business through a business broker. Later, as he worked closely with an M&A advisory firm to sell that business, Randy saw true value in working to fulfill dreams through successful business ownership transitions.

As he worked at a few firms over the next five years, Randy began developing his own unique process and experienced great success. Randy founded Rua Associates in 2010, and in 2016 he and his wife and business partner, Tami, decided to purchase NuVescor and apply Rua’s successful process to NuVescor’s clients, seeing immediate results.

Randy has a BS in Engineering from Calvin College and an MBA with a concentration in entrepreneurship from the University of Southern California. He is a Certified Business Appraiser through the National Association of Certified Valuators and Analysts, a Certified Exit Planning Advisor through the Exit Planning Institute, and a Certified Advisor for the Value Builder System. In addition, Randy has served as an adjunct professor at Calvin College and Grand Valley State University.

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Eric FoggAdam Crandall
Chief Revenue Officer at Addtronics Group
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Adam Crandall is an engaging Executive possessing a winning blend of strategy, business development, operations, leadership, client relationship management, negotiation and communications acumen. Crandall has a successful track record building high-performing teams and leading new commercial initiatives.

Previously, Mr. Crandall served in various senior leadership positions at VWR International (now Avantor), Refractron Technologies Corporation, Micro Instrument Corporation, and Dynamic Design Solutions. In his current role as CRO of Addtronics, he continues to build and lead sales, marketing, and applications teams, while also driving revenue growth.

He embraces challenges with enthusiasm and consistently delivers solutions that optimize performance and create long-term value. With a forward-thinking approach and a commitment to excellence, Adam Crandall is a driving force behind Addtronics’ continued success in the ever-evolving landscape of robotic solutions.

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Corey Carolla
Engineered Solutions Provider, COMI Americas
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Corey is with Comi Americas, where he focuses on identifying and evaluating new growth initiatives, primarily through strategic partnerships, talent development and long-term corporate strategy, to provide their customers with engineered solutions, across industries and sectors. Corey excels in guiding and supporting companies to create, plan, and execute on their journey to the next level, integrating automation and process improvement to directly impact the company’s efficiency, and their bottom line.

Corey brings a unique skill set coupling his Economic, Business and Workforce Development background with his 25+ years of experience in manufacturing. Having held key roles in Economic, Community, Workforce, and Business development, Corey continues to fuel his passion for business startup, and recovery. Corey has assisted in the creation and implementation of business and economic development initiatives at regional, national and international levels, supporting economic vitality globally.

A key to Corey’s success is his keen ability to identify, create and attract solutions for new and evolving industries. In working directly with key business, community, economic development, and education stakeholders, and industry supply chain, Corey plays an integral role in the strategic planning of activities to support expansion and further development, particularly in manufacturing.

Ready to Sell?

Our initial consultation is designed to understand your acquisition criteria, ensuring a tailored approach throughout the selling process. Schedule a meeting with our team below.

3380 Chicago Dr, Hudsonville, MI 49426
616-379-4047

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