• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer
  • Home
  • Subscribe
  • Your Membership
    • Edit Your Profile
  • Services
    • Advertising
    • Case studies
    • Design
    • Email marketing
    • Lead generation
    • Magazine
    • Press releases
    • Publishing
    • Sponsored posts
    • Webcasting
    • Webinars
    • White papers
    • Writing
  • Shop
    • My Account
    • Cart
  • About
    • Contact
    • Privacy
    • Terms of use
  • Events

Robotics & Automation News

Market trends and business perspectives

  • News
  • Features
  • Video
  • Webinars
  • White papers
  • Press releases
  • Featured companies
    • AMD Xilinx
    • BlueBotics
    • Elite Robot
    • RGo Robotics
    • SICK Sensor Intelligence
    • Vicor Power

Selling an Efficient Manufacturing Company in the Covid-19 Era

April 8, 2020 by David Edwards Leave a Comment

First Order of Business is Occupational Health and Safety. By Frances A. Brunelle

Due to Covid-19, more small and midsized manufacturers ($2 million to $20 million) will either close or be sold. For those owners who are thinking of selling their manufacturing operation, occupation health and safety should be #1 on the list of issues to address when preparing their company for sale.

With so much of the world on lockdown, more industrial enterprises are using Q2 2020 to evaluate the short-term game plan. Companies will enter Q3/Q4 2020 and all of 2021 with one thought: acquire or be acquired.

Manufacturing occupational health and safety processes prevents or lessens the risk of workplace injury, illness, and even death. These are the right actions to take, whether a manufacturer is looking to be acquired or not.

Manufacturing facilities and management with an emphasis on safety as a top-level priority, remain highly productive, competitive, and profitable in today’s marketplace. Never before has this been more apropos than in the time of Covid-19.

The manufacturing sector has changed considerably in the last few decades, with the challenges of escalating structural costs, an ageing workforce, and a widening skills gap to meet demand.

This complex business environment presents tough challenges often complicated by expensive and extensive workers’ compensation claims. Potential acquirers take a critical and appropriate examination of safety processes.

Buyers want to see that steps have been taken to reduce safety claims. The Covid-19 non-stop news has shown the cost of poor occupational health and safety practices.

Department of Labor (DOL) agencies are responsible for the administration and enforcement of the laws enacted to protect the safety and health of workers in America. Occupational Safety and Health Administration (OSHA) jurisdiction addresses most employees, with some exceptions such as miners, some transportation workers, many public employees, and the self-employed.

Employers subject to OSHA also have a general duty to provide work and a workplace free from recognized, serious hazards. OSHA also administers the Whistleblower Protection Program, ensuring an employer cannot retaliate by taking “adverse action” against workers who report injuries, safety concerns, or other protected activity.

OHS: The top priority for manufacturers looking to sell their operation

Just as Baby Boomers on the manufacturing plant floor are getting ready to retire, so are the owners. More than 5,000 small manufacturing operations (with annual revenues between $2 million to $20 million) will either close their doors or find new owners in the next two years.

Manufacturing owners of smaller operations are using these “down months” to consider what they can do to make their businesses more attractive and worthwhile to prospective buyers.

Because Accelerated Manufacturing Brokers only deals in the manufacturing sector, years of experience have taught the team what buyers want to see and similarly what they want to avoid. Understanding the mindset of the prospective buyer makes or breaks a sale.

The characteristics of the new buyer have changed, with an increasing emphasis in sales, marketing, and business development skills. These new buyers are frequently from other sectors with less manufacturing experience.

This new breed of buyer wants to know that the fundamental issues of occupational health and safety are systemically addressed. Before Covid-19 this might have been fourth or fifth on the list. Now it’s number 1.

Proper OHS processes mitigate risk for acquirers of manufacturing companies

Manufacturing buyers want to know that the OHS risks have been mitigated by the seller. They want to know that worker’s compensation claims, regulator safety compliance requirements (such as fork truck driver education), and all other employee safety issues have been documented and addressed.

Manufacturing safety is important to prevent or lessen the risk of workplace injury, illness, and death. While that may seem obvious operationally, to a buyer only those manufacturing facilities which continue to emphasize safety as a top-level issue will remain highly productive, competitive, and profitable in today’s marketplace.

Incident reports will reflect if the manufacturer has a strong handle on OHS issues. The new buyer may come from a hedge fund, large bank, or corporation. While the OHS issues are different in manufacturing, they understand documented processes.

These are the best indicators whether a manufacturing company will be sold or not. With safety standards established, many buyers’ fears are removed. When safety is documented and addressed, the ability to get top asking price is statistically improved.

Author Profile: Frances Brunelle is the founder of Accelerated Manufacturing Brokers, Inc., specializing in the sale of lower middle market manufacturing companies nationally. Additionally, she hosts the WAM Podcast (Woman and Manufacturing), which highlights and profiles the opportunities for women in senior management and ownership positions. Fran and her team help to ensure the continuity of US Manufacturing by transitioning ownership to the next generation of entrepreneurs. Fran writes on topics that help manufacturing business owners prepare their companies for sale and navigate the sale process to ensure a positive financial result in support of their retirement. Fran was recently named to 2020 Most Influential Women in Mid-Market M&A in Mergers & Acquisitions publication. Get listings alerts before the public here.

Print Friendly, PDF & Email

Share this:

  • Print
  • Facebook
  • LinkedIn
  • Reddit
  • Twitter
  • Tumblr
  • Pinterest
  • Skype
  • WhatsApp
  • Telegram
  • Pocket

You might also like…

Filed Under: Features, Manufacturing Tagged With: accelerated manufacturing brokers, buyers, health, manufacturing, safety

Join the Robotics & Automation News community

Reader Interactions

You must log in to post a comment.

Primary Sidebar

Latest articles

  • Autonomous mobile robots market expected to expand at 22 percent a year
  • Will a robot take my job? Notre Dame researcher says this view is overly pessimistic
  • Flexiv partners with Doco Engineering to meet ‘expanding US robotics demand’
  • Addverb opens second software development centre in India
  • ABI Research gives 16 autonomous forklift system vendors competitive rankings
  • euroTECH’s Vacuum Lifter System Increases Efficiency and Ergonomics in Wood Processing
  • How to Reduce Chatter in Robotic Milling Applications
  • Otto Motors launches new ‘mid-sized’ autonomous mobile robot
  • SGS introduces ‘cutting-edge testing protocol’ for robots checking furniture drawer slides
  • Europalco buys two robots from Kuka to add ‘wow factor’ to shows

Most Read

  • Top 20 electric vehicle charging station companies
    Top 20 electric vehicle charging station companies
  • Difference Between Three-Phase and Single-Phase Power
    Difference Between Three-Phase and Single-Phase Power
  • Scientists have found more water in space than they ever knew possible
    Scientists have found more water in space than they ever knew possible
  • Top 20 programmable logic controller manufacturers
    Top 20 programmable logic controller manufacturers
  • How to Know if Your iPhone is Being Tracked? Check This!
    How to Know if Your iPhone is Being Tracked? Check This!
  • What You Need to Know About Fixing an Engine Misfire
    What You Need to Know About Fixing an Engine Misfire
  • Why is My Car Key Stuck in the Ignition?
    Why is My Car Key Stuck in the Ignition?
  • Why is Money Important in Our Lives?
    Why is Money Important in Our Lives?
  • IoT Basics: A Guide to the Internet of Things for Beginners
    IoT Basics: A Guide to the Internet of Things for Beginners
  • Otto Motors launches new ‘mid-sized’ autonomous mobile robot
    Otto Motors launches new ‘mid-sized’ autonomous mobile robot

Overused words

ai applications automated automation automotive autonomous business companies company control customers data design development digital electric global industrial industry logistics machine manufacturing market mobile operations platform process production robot robotic robotics robots safety software solution solutions system systems technologies technology time vehicle vehicles warehouse work

Secondary Sidebar

Latest news

  • Autonomous mobile robots market expected to expand at 22 percent a year
  • Will a robot take my job? Notre Dame researcher says this view is overly pessimistic
  • Flexiv partners with Doco Engineering to meet ‘expanding US robotics demand’
  • Addverb opens second software development centre in India
  • ABI Research gives 16 autonomous forklift system vendors competitive rankings
  • euroTECH’s Vacuum Lifter System Increases Efficiency and Ergonomics in Wood Processing
  • How to Reduce Chatter in Robotic Milling Applications
  • Otto Motors launches new ‘mid-sized’ autonomous mobile robot
  • SGS introduces ‘cutting-edge testing protocol’ for robots checking furniture drawer slides
  • Europalco buys two robots from Kuka to add ‘wow factor’ to shows

Footer

We are…

Robotics and Automation News was established in May, 2015, and is now one of the most widely-read websites in its category.

Please consider supporting us by becoming a paying subscriber, or through advertising and sponsorships, or by purchasing products and services through our shop – or a combination of all of the above.

Thank you.

Independent

Archivists

April 2020
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
27282930  
« Mar   May »

Complex

Old-skool

This website and its associated magazine, and weekly newsletter, are all produced by a small team of experienced journalists and media professionals.

If you have any suggestions or comments, feel free to contact us at any of the email addresses on our contact page.

We’d be happy to hear from you, and will always reply as soon as possible.

Future-facing

Free, fair and legal

We support the principles of net neutrality and equal opportunities.

Member of The Internet Defense League

Copyright © 2023 · News Pro on Genesis Framework · WordPress · Log in

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT