M&A Activity -- Expect a Surge in Mergers
Unionized work force
Need to spend millions for new equipment
Recent revenue declining
Declining or "peak and valley" EBITDA
Reviewed or compiled financials
Too little or too much excess capacity
Tight plant. No room for growth
Plant cannot be expanded
Late stage or undesirable real estate lease
Owner, CEO will retire
Severe account concentration 20%+
History of environmental problems
Company is being sued for big dollars
Haphazard layout
Sloppy, dirty facilities
Bad roof, ventilation, etc.
Revenues less than $10 million
Way down the list in market share
No differentiation. Low price spread
Low value-added
One key salesperson selling 25%+
Loose and fast with print buyers
Suppliers wish company would go away
Potential federal or state tax liability
Revolving door
© 2004 Compass Capital Partners
