CHICAGO — Both Terry Minnick and Andrew Munson make a living by putting together buyers and sellers of plastics businesses.
They've seen what works, and what doesn't, over their years of experience at Molding Business Services of Florence, Mass.
And while there are plenty of business consultants out there who will tell you what do to make a deal work, Minnick and Munson says are some definite things to avoid to successfully sell a plastics molding company.
MBS has been around since 1998, when Minnick started the firm.
“I was hoping there had to be an easier way to make a living than owning a custom injection molding company. I tell people I lost most of my money and all of my hair in the plastics business, which is probably true,” he said during a humor-filled presentation at the recent Plastics Financial Summit in Chicago.
“I was right, by the way, being a consultant is much easier than owning a custom injection molding business,” the MBS president said.
And here's a key detail Minnick has learned over his nearly 20 years at MBS: don't try to time the market.
“Every processor that owns a business would like to sell his business at exactly the high point of the market so you can get just the most you can possibly can,” Minnick said. “I buy stocks that go down, they don't go up. It's hard to time the market unless you have a crystal ball.”
He recalled one deal during the Great Recession involving a custom injection molding company owner who had to sell quickly due to health reasons.
“Yeah, I said 2009. You couldn't sell $100 in cash for $85 dollars back then. It was really, really tough to sell a molding business,” he said. “We had no choice. We couldn't wait. We got lucky. We did find a very good buyer,” he recalled.
“We got the deal done. But we got about half of what we would have gotten a few years before that or half of what we would have gotten two years later. It was a very, very tough situation.”