Manufacturing/Industrial friendly Family offices?

searcher profile

October 09, 2024

by a searcher in Tasmania, Australia

Hi everyone,

Search fund investors don’t usually look at manufacturing for a few reasons, and the one I agree with is that manufacturing is usually too complex for the usual searcher (if they don’t have extensive manufacturing experience). This we have. The others I’m sure we can debunk.
However,
having investors on board who understand manufacturing and see its potential already is ideal!

Do you know of ‘manufacturing friendly’ family offices (international is great) to recommend to us?

Thank you!
Roz
www.modivlegacy.com

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commentor profile
Reply by a searcher
in Tasmania, Australia
Funny thing is, I don’t believe manufacturing is any more risky than other types of businesses, though there is sometimes that perception. “Loose on the roundabout, gain in the swings”: What manufacturing ‘looses’ on Capex spend initially it gains on strength of momentum. In manufacturing recurring revenue is extremely powerful because of barrier to entry. The more niche the higher the barrier. A profitable reasonably sized legacy manufacturer would be extremely hard to “mess up”. Beyond that, the short answer is that there are risks to any business that need foresight to address, and manufacturing requires greater foresight because implementing change is slow. So experienced manufacturing execs in this space being that advantage as compared to inexperienced, because they understand manufacturing runway and the required cashflow balancing intimately.
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Reply by a searcher
from New Jersey Institute of Technology in New Jersey, USA
What are some of the reasons why investors don’t like manufacturing? Is it because there’s no ARR and you only make money when some places an order
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