2018 Fall issue of Horizons

INDUSTRY UPDATE MANUFACTURING & DISTRIBUTION

Manufacturers & Distributors Feel Impact of Mergers & Acquisitions by Jim Mather, CPA, CGMA R eflecting back on the traditional ownership of RubinBrown’s manufacturing and distribution quality manufacturing and distribution companies looking to sell a partial or complete interest as either a platform investment or as an add-on to a portfolio company.

clients, so many were first, second or even third generation closely held family businesses. Many have prospered through years of organic growth and many others have expanded through the addition of talent, equipment, facilities or the acquisition of competitors. It appears the next wave of traditional ownership has become that of private equity or other types of financial buyers. There continues to be substantial demand for

Investor activity continues to be aggressive and supporting an extended “sellers” market. In addition, financing for transactions continues to be favorable as lenders are very competitive in seeking opportunities with attractive terms and reasonable rates. These factors have generally contributed to considerable consolidation within manufacturing and distribution niches.

Fall 2018

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