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10 Best Practices for Assessing Manufacturing M&A Opportunities

December 2, 2024
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MF Business Edge
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10 Best Practices for Assessing Manufacturing M&A Opportunities
Investment-minded manufacturers can use the current, positive M&A environment to increase their customer base, add new capabilities, enter fast-growing sectors and even accelerate digital transformation. But before acquiring a manufacturing business, first ensure that you’re not buying someone else’s problems—or compounding your own. Here are 10 best practices for assessing M&A deals to help optimize your return.
 
 
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Metal Formers’ Outlook Improves, Shipping Levels Trend Upward
Metal forming manufacturers’ forecast for business activity during the next three months shows a modestly improved outlook, according to the November 2024 Precision Metalforming Association (PMA) Business Conditions Report. Per the report, 23% of respondents predict an increase in economic activity in the next three months, up notably from 13% in October, and current average daily shipping levels in November trended upward, with 26% reporting an increase in shipping levels, up from 10% in October).
 
 
On the Cusp of Sustainable Growth
Early in November the Federal Reserve slashed the federal funds rate by another 25 basis points to a target range of 4.5 to 4.75%. Upon that news, the principal economist for AMT—The Association for Manufacturing Technology—opined that manufacturers now may find themselves at the beginning of a strong market.
 
 
September Machine Tool Orders Up Year-Over-Year
September 2024 orders of manufacturing technology, measured by the U.S. Manufacturing Technology Orders (USMTO) report published by AMT–The Association For Manufacturing Technology, increased 24% from August and registered 14.6% higher than September 2023 orders. Contract machine shops increased their orders to the highest level since March 2023.
 
 
Data Mastery: A Key to Industrial Competitiveness
The Manufacturing Leadership Council’s “Future of Manufacturing Project” seeks to enable manufacturers to envision what manufacturing might look like in the future, with a focus on Manufacturing 4.0 and digitalization of manufacturing plants and factories. This recently released white paper takes a deep dive into “Data Mastery”—the ability to gather, organize, analyze and use information from all facets of manufacturing.
 
 
2025 Manufacturing Industry Outlook
In 2024, US manufacturing experienced continued investment even as higher interest rates and a challenging business environment have created obstacles to near-term industry growth. Deloitte’s 2025 Manufacturing Industry Outlook explores the following trends to help leaders shape strategies and priorities in the coming year:
  • Talent: Positioning for renewed demand and maintaining a long-term workforce strategy
  • Artificial intelligence and generative AI in manufacturing: Prioritizing targeted, high-ROI investments
  • Supply chain: Tackling disruptions and elevated costs with agility and efficiency
  • Smart operations: Building the foundation while prioritizing high-value projects
  • Clean technology manufacturing: Moving ahead strategically amid uncertainty
 
 
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The Ultimate Guide: How to Sell Your Manufacturing Business
This comprehensive guide outlines the essential steps and considerations involved in selling your manufacturing company with the assistance of a broker, empowering you to navigate this complex transaction with confidence and maximize the value of your business.
 
 
Industry-Related Terms: Forming, Forming
View Glossary of Metalforming Terms

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