Fewer Than 150 PCB Shops Remain in North America
According to GP Ventures’ database, the number of printed circuit board manufacturing companies in North America (including Canada), is now below 150. In 2020, it was around 200, and in 2022, it was 170. These figures do not include companies that only import or assemble boards. Please note that we are counting PCB companies and... Read More →
Understanding Rollover Equity
With the rise in the influence of private equity (PE) firms (which I affectionally joke now means “practically everything”), rollover equity has become more common in M&A deals. According to GF Data, 28.6% of deals in the first three quarters of 2024 included rollover equity1. Many private equity deals in the PCB, EMS, and other... Read More →
2024 North American PCB and EMS M&A Review
M&A deal-making in the North American EMS sector was strong in 2024 with 21 deals, whereas activity in the PCB sector was pretty weak with only three deals. The 21 deals in the EMS space compares favorably with 18 completed in 2023 and 13 in 2022. The three deals on the PCB side are notably... Read More →
New Year’s Goals for Selling a Business
New Year’s resolutions are great because they are so fun to break. So, if you’re planning to sell your business, rather than making fragile resolutions, it’s better to make some New Year’s goals. Financials: It’s not all about the numbers, but it’s mostly about the numbers. If you are looking for a Mercedes-level valuation, you should... Read More →
Should You Sell Your Company to a Private Equity Firm?
I am often asked by owners in the electronics industry about using private equity (PE) firms as potential buyers. It’s true that PE firms have completed a lot of deals in the PCB and EMS industries over the years. In fact, two of the largest U.S. PCB shops—Summit Interconnect and AdvancedPCB—are owned by private equity... Read More →
What Buyers Are Buying
I recently looked at completed deals in the North American PCB and EMS sectors over the past few years and spoke with several buyers who are active in the M&A market. According to my records, there were 31 deals in the North American PCB sector from 2021 through August 2024 (11 in 2021, five in... Read More →
North America PCB, EMS M&A Review: The First Six Months of 2024
M&A deal discussions were fairly strong in the North American EMS and PCB sectors in the first half of 2024, but for various reasons, the number of actual closed deals was lower than in the first half of 2023. For example, there were just two PCB deals that closed in the first six months of... Read More →
Breaking Down Legal Preparations for M&A
When owners prepare for to sell, the only legal advice I ever give is for them to get a good M&A lawyer, but here are some general things owners should consider. First, get a good M&A lawyer. If your long-term corporate law firm has a strong M&A team, that’s perfect. Be sure they aren’t too... Read More →
Breaking Out of the Valuation Box
Many manufacturing companies are in a “valuation box.” That is, the value of the company, based on a market multiple, is not equal to the value of the assets. Or worse, once debt is paid off, the net proceeds would actually be negative. Here are some tips for getting out of the box. Now, how... Read More →
The New Industry: Will the Growth Continue?
Feature Interview by the I-Connect007 Editorial Team How sustainable are the primary financial models in the United States regarding PCB fabrication shops? In this interview with IPC Chief Economist Shawn DuBravac and M&A expert Tom Kastner, we explore what’s happening with U.S. printed circuit board shops in today’s market, how consolidation affects the industry, and... Read More →