Why Machining Companies are Growing Through Acquisitions

Noah: Graft-Pinkert is getting more into buying and selling companies, and we’re going to talk about that more in the podcast as time goes on. One of the things we’ve seen that seems significant in 2023 is that Baby Boomers are retiring. Other people are looking to consolidate and grow, so it seems like a very interesting opportunity for us.

Lloyd: Another thing is that it is very hard for small businesses to acquire new customers as opposed to bigger businesses. It’s easier for big businesses because other big businesses want to deal with big businesses, and they have the wherewithal to have salespeople and may use social media in ways that are effective.

It’s also difficult for small businesses being run by people in their forties and thirties and twenties who have big ambitions but really do not know where in the world to find new customers. They may have access to capital, they know how to run the machines, they’re good organizers and they have big ambitions.

What do they do? They look for possible acquisitions to acquire new customers without the effort, without the long lead time, and with the intellectual property, the knowledge of how to make the parts for potential clients.