12/14/2010
HEADLINES
Blattner: How to Survive Fastener M&A Deals
Looking to sell your fastener company, or looking to acquire one?
Active Screw CEO Buddy Blattner has some advice for you.
It’s true that valuation levels are higher now than a year ago, and there is considerable private equity money available for investment.
But that doesn’t mean a deal will be easy, Blattner told attendees of an acquisition roundtable during the National Industrial Fastener Show/West in Las Vegas.
“Just because you want to sell doesn’t necessarily mean there will be a buyer out there,” Blattner stated. “Sometimes you have to get lucky.”
Finding the right company to acquire can also be challenging.
“It’s like getting a job. You’ve got to network network network.”
And while every deal is different, there are some things common to them.
“Generally M&A transactions are better for the buyer than they are for the seller.”
Blattner said mergers and acquisitions failures are either from overpayment or a bad fit in terms of company culture.
He advised carefully evaluating what you want — beyond price — when considering a deal.
“Think of it as a hiring process,” he said. Use that as a gauge to see if it’s a good fit.
His primary advice to sellers? “Don’t sell your company if you don’t expect change.”
If you do sell, it’s important to advocate for the new owners, because the hard part of integration is “executing your plan.”
“The end of the deal is just the beginning. You really have to be ready to start working on day one.” ©2010 GlobalFastenerNews.com
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