Even when the economy was in a downturn, there were sales of smaller molders. Now, there's a lot more interest in the buying and selling of those molders, according to Molding Business Services.
“Even in a down economy — in 2008, 2009 and 2010, we were closing sales. We've had four deals in the last five months,” MBS President Terry Minnick said in an interview.
Minnick, his son Joel and Andrew Munson take part in the Florence, Mass.-based business that advises smaller processors about mergers and acquisitions.
Minnick said the firm has developed a 26,000-file database and in preparing for NPE, MBS sent out 60,000 emails.
“The key to selling is to know who your buyer is,” said Minnick, the former owner of a plastics company.
What MBS has found is that owners are selling their companies because they want to exit or they have financial troubles.
“I gave a speech at [a Society of Plastics Engineers event] in 1995 about the industry seeing a lot of consolidation. Here it is 17 years later, and we still have a lot of room to go,” he said.
Minnick added that there is a great deal of pent-up demand, making it an especially good time to sell.
George Danis bought ResTech Plastic Molding, an MBS client, in 2010 and consolidated the business from three locations.
“We were able to retain all the people and move them all to Hudson, [Mass.],” Danis said. Now, ResTech runs 35 presses from 50-750 tons and employs 125.
Minnick predicted MBS will be involved in eight to nine deals this year.
“It depends on the industry you are serving. Medical device and packaging have been doing well, and automotive is doing well today,” Munson said.
He added that being in a niche situation is advantageous in deal-making these days.