A HARTMANNRHODES CLIENT STORY
Selling a Family-Owned
Precision Manufacturing Business
Manufacturing & Fabrication ownership transition
The owner of a family-owned precision manufacturing business was ready to retire. Protecting the company’s legacy and its employees mattered deeply to him. He also needed to keep the business performing while the sale was underway.
Mark Hartmann of HartmannRhodes managed the transaction from marketing through closing, allowing the owner to stay focused on running the company.
Preparing for a change in ownership
The company had long-standing customer relationships, experienced employees, and an owner deeply involved in daily operations. A sale required a plan for transferring his knowledge and responsibilities to new ownership.
HartmannRhodes prepared the business for market and presented its operations and financial performance to prospective buyers. HartmannRhodes also combined targeted website advertising with direct email outreach to strategic buyers. The eventual purchasers were financial buyers identified through the website advertising.
Keeping the transaction moving
Mark handled negotiations and kept the deal moving through weekly due diligence meetings. Those meetings kept the parties focused on the work needed to reach the closing table.
This gave the owner room to concentrate on customers, suppliers, employees, and daily operations. That focus matters throughout a sale, especially after a letter of intent is signed. Losing a key customer or supplier, or letting performance slip, can lead a buyer to demand a lower price or walk away.
Planning the handoff
The transaction included a consulting arrangement with the seller, allowing him to remain involved during the handoff. The arrangement gave the buyers access to his operating knowledge as the buyers assumed responsibility for the business.
The outcome
The sale closed, allowing the owner to begin his transition into retirement. The new owners retained every employee, preserving the team’s experience as the company entered its next chapter.
“Thank you for the wisdom, guidance, bitch slaps, and grace. It has been a pleasure working with you.”
Dave M.
Former Owner, Precision Manufacturing Business
Preparing to retire from your manufacturing business?
Talk with HartmannRhodes about planning your sale and managing the transaction so you can stay focused on running your company.