Sale of a niche precision engineering company
The Company
This highly successful CNC and precision engineering company has a niche in machining, coating and heat treating complex shaped metal components for analytical instrumentation and laboratory equipment.
Click here for full Business Summary
The Situation
The company was run by two directors who had worked well together for 20 years. One director was responsible for business development, sales and admin, the other was in charge of operations. The business development director was approaching retirement age and wanted to retire within the year, whilst the operations director was ten years younger and still highly driven.
What Hornblower Did
As per our normal process we researched the market for the most compatible engineering companies for whom our client’s business would represent a strategic benefit, as well as going to our own database of buyers actively looking to buy a precision engineering business.
Having lined up a range of offers, we sold the business for full market value, with the buyer acquiring the majority of the shares in the company; the operations director retained a significant though minority share.
WIN WIN
The buyer is highly experienced in the sector and has plans to expand the business two/threefold over the next five years before selling the business again, realising perhaps several times the initial investment for both himself and the operations director.
The business development director was able to retire and the operations director will have a second bite of the cherry when the buyer eventually exits
We consider this a win-win situation, and look forward to selling the business again in five years’ time!
Hornblower Business Brokers - Specialists in selling niche precision engineering businesses
