In this article for Modern Aesthetics, Bundy Group shares highlights from the 2023 American Academy of Dermatology Conference and survey of strategic buyers.
The American Academy of Dermatology (AAD) conference drew a substantial crowd, which included dermatology and plastic surgery practice owners, financial sponsors, and executives of active strategic buyer platforms in the industry. During the conference, Bundy Group held numerous meetings with CEOs and corporate development directors, all serving in organizations backed by financial sponsors, to better understand buyer sentiment for completing acquisitions the dermatology, plastic surgery, and medical spa professions in the current economic climate. In addition, and immediately after the conference, Bundy Group initiated a survey with the most active buyers in the segment. In short, these experienced professionals expressed enthusiasm over the state of the market and continued growth in the aesthetics market, but there are some considerations to note. Below are the major takeaways from the conference and the results of the post-conference survey.
One of the key topics from the conference was the current macroeconomic environment, including talk of recession and how it might impact plastic surgery and dermatology practices today. On the minds of owners and seasoned buyers were the potential negative impacts on practices due to the recent credit market challenges and the consequences from the Silicon Valley Bank and First Republic Bank failures. As one seasoned executive with a strategic platform stated, rising interest rates and tightening lending restrictions will “make us more selective in what practices we buy, as we can’t have foot faults in these conditions.” The executive further added, “our main lender is still supportive of our acquisition focus and growth efforts, and will provide funding, but it has tightened our credit line from $50MM to $25MM over the past few months.”
Aesthetics practices are still finding it difficult to find staff, which includes talented employee physicians, mid-levels, aestheticians, and administrative support. Wendy Lewis, President of Wendy Lewis Co., a boutique marketing communications group that specializes in the beauty, health, and wellness sectors, weighed in. “Staffing continues to be a big challenge for all practitioners as today’s employees are less likely to be loyal to employers and have set the bar quite high to stay long term.” She added, “Turnover of key staff members can have a significant impact on practices in terms of the loss of institutional memory, the inherent costs of training, and stress it puts on the staff and practitioners.”
At the AAD conference, practice owners and strategic buyers spoke about the challenges of recruiting talented providers to secondary markets and rural areas. As one recruiter for a strategic platform commented, “the young physicians and mid-levels often want to move to the large metropolitan markets, which presents challenges for our national organization.”
Bundy Group’s post-conference survey certainly validated insights received at AAD, and there were several new and enlightening takeaways. There were nine respondents, all in executive positions and highly experienced in dermatology and aesthetics acquisitions, who answered the questions and provided additional insights.
The majority of respondents are planning for a recession in the next 12 months. However, these industry players are expecting the aesthetics market to continue to grow during this same timeframe. Furthermore, each of these organizations is planning for their own businesses to grow in the next year. The participants’ confidence appears to validate the recession-resiliency of the aesthetics market.
The respondents signaled continued and strong interest in acquisitions. They indicated the dermatology market still has plenty of runway left for consolidation, as the respondents indicated the industry is only halfway through its aggregation cycle. Furthermore, on a 1 to 5 scale (1 = not looking for acquisitions; 5 = aggressively looking for acquisitions), the average and median response was a 4, indicating mergers and acquisitions (M&A) is alive and well with the brand name buyers in the dermatology industry. However, four of nine respondents did state current events in the financing markets have decreased their appetite for acquisitions in dermatology and aesthetics. As one executive stated, “Rising interest rates have resulted in our taking a more conservative approach to acquisitions, as we are now placing an increased emphasis on quality, growing practices.”
Although this group of nine buyers has its roots in dermatology, a number of these organizations have expanded into plastic surgery and medical spas while others have a heightened interest in making that move. In all, five of the nine survey respondents indicated that they are actively pursuing acquisitions in the plastic surgery sector, and four of the nine stated that they were actively pursuing acquisitions in the medical spa sector. Would most of these dermatology strategic platforms have answered no to these questions just a couple of years ago? While the plastic surgery and medical spa segments are of great interest to buyers, these buyers are also closely watching the impact of a 2023 recession on practices that operate in these segments.
Bundy Group receives from practice owners such common questions as, “What are the valuation multiples for practices today? Are they decreasing? How much is my practice worth?” These are topics Bundy Group is immersed in when we are representing an owner in a sale, as our firm’s goal is to maximize the practice’s valuation. Most survey respondents revealed they do expect practice valuations to decrease over the next 12 months compared to current levels. One executive stated he believes “valuation multiples will decrease by 0.5x to 1.0x.”1 Another respondent stated, “High quality assets will fetch historical valuations, but less attractive or higher risk transactions will see valuations reduced and less demand overall.”
While the subject of valuation is on everyone’s mind, an equally important topic is what compromises a practice’s valuation, also known as the transaction structure. Upfront cash from a buyer to a seller is an obvious component, but there is also creative structuring that can be utilized, which includes equity reinvestment by a seller,2 seller note,3 or earn-out.4 Buyers can, and sometimes do, utilize creative structuring to minimize risk and ensure the seller has a vested interest in future success of the practice. As one respondent stated, “We are asking for higher equity reinvestment from sellers today, such as 25% to 30% percent vs 15% to 25% in the past.”
We believe that the feedback given to the Bundy Group at the conference, and the post-conference survey, indicates a strong level of enthusiasm, both from a practice owner’s perspective and a buyer’s perspective. The multi-billion dollar aesthetics market continues to thrive and evolve, but macroeconomic headwinds could place some pressure on practices owners and consolidators; we see no loss of momentum in the aesthetics industry.
In this article for Plant Engineering Magazine, Bundy Group provides an update on mergers & acquisitions and capital placement activity for companies that address the manufacturing and plant management fields.
Spring 2023 is continuing to show strength and consistency in terms of mergers & acquisitions and capital placement activity in the automation and industrial technology market. Companies that were recently involved in transactions had such capabilities as electrical equipment installation, distribution of specialty automation products, and supply chain solutions for industrial customers. Transactions to note through Spring 2023 include MiddleGround Capital’s acquisition of A.M. Castle & Co., Durr Group’s acquisition of BBS Automation, Motion & Control Enterprises (MCE) simultaneous acquisition of Power & Pumps and Industrial Control Services and Ingersoll Rand’s acquisition of Ecoplant. This list of buyers and investors highlights the attractiveness of the automation and industrial technology markets.
Bundy Group’s current engagements and owner relationships include control system integration, automated material handling, automation distribution, industrial services, and electrical services. This serves as a leading indicator for industries our team anticipates closed transactions in over the coming months. We look forward to providing these relevant updates to Plant Engineering readers.
6/15/23
MiddleGround Capital, an operationally focused private equity firm that makes control investments in middle market manufacturing B2B industrial and specialty distribution companies globally, has acquired A.M. Castle & Co. a leading provider of metals, services, and supply chain solutions serving industrial and aerospace customers. Learn more.
6/14/23
Flow Control Holdings, a portfolio company of Audax Private Equity and leading provider of sanitary-flow components to the pharmaceutical, food, and beverage end markets, has acquired the U.S. operations of Strahman Holdings, Inc. Strahman is a leading manufacturer of washdown equipment, sampling valves, and valve automation products to the pharmaceutical, F&B, and industrial end-markets. Learn more.
6/13/23
Ecoplant, an Israeli startup that develops new technologies to increase energy efficiency and thereby reduce air pollution, is acquired by the major American industrial corporation Ingersoll Rand. Ingersoll Rand is a global provider of innovative and mission-critical air, fluid, energy and medical technologies, providing services and solutions to increase industrial productivity and efficiency. Learn more.
6/13/23
EQT Mid Market Europe and EQT Mid Market Asia III have agreed to sell BBS Automation to MDAX-listed Dürr Group. Headquartered in Munich, Germany, BBS Automation helps companies automate their production processes and reduce energy consumption, waste and downtime, allowing customers to meet rapidly growing cost and sustainability demands. Learn more.
6/6/23
LFM Capital, a private equity firm focused on lower middle market manufacturing and industrial services businesses, portfolio company, Accelevation LLC acquired Instor Solutions, Inc. Instor is a data center equipment integrator, focused on low-voltage electrical equipment build out and installation. Learn more.
6/5/23
Motion & Control Enterprises acquired Power & Pumps, headquartered in Jacksonville, FL, is a distributor of pumps, drives, blowers, vacuum, and power transmission products to municipal and industrial customers in Florida and Georgia. P&P is also the master distributor in North America for All Prime Pumps, a line of self-priming pumps sold to municipal and industrial end-users and resellers. Learn more.
6/5/23
Motion & Control Enterprises acquired Industrial Control Services, based in Zeeland, MI, is a value-added distributor of specialty automation products, including robotics, motion control, machine vision, barcoding systems, controls & networking, and safety solutions. Learn more.
6/5/23
Blackford Capital, a leading lower middle market private equity firm, acquired PACIV, which specializes in industrial automation solutions. PACIV is a leading full-service provider of industrial process automation and systems integration primarily for manufacturers in the pharmaceutical and life sciences industries. Learn more.
5/2/23
AMETEK, Inc. acquired Bison Gear & Engineering Corp. (Bison), a leading manufacturer of highly engineered motion control solutions serving diverse markets and applications. Bison designs and manufactures custom motion control solutions for use in demanding and high precision applications within the automation, power, food and beverage, and transportation markets. Learn more.
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In this article for Control Engineering Magazine, Bundy Group provides an update on mergers & acquisitions and capital placement activity in the automation market.
Spring 2023 is continuing to show strength and consistency in terms of mergers & acquisitions and capital placement activity in the automation market. Companies that were recently involved in transactions had such capabilities as control system integration, artificial intelligence, automation products distribution, and manufacturers of custom motion control solutions.
Transactions to note through Spring 2023 include AMETEK’s acquisition of Bison Gear, Durr Group’s acquisition of BBS Automation, Blackford Capital’s acquisition of PACIV, Motion & Control Enterprises (MCE) simultaneous acquisition of Power & Pumps and Industrial Control Services, and Parkway Venture Capital’s investment in Figure. This credible list of buyers and investors highlights the attractiveness of the automation market.
Bundy Group’s current engagements and owner relationships include control system integration, automated material handling, automation distribution, artificial intelligence, and cybersecurity. This serves as a leading indicator for submarkets our team anticipates closed transactions in over the coming months. We look forward to providing these relevant updates and transaction announcements to Control Engineering magazine readers.
6/21/23
North Branch Capital has made an investment in ControlByWeb. Headquartered in Nibley, UT, CBW is a premier designer and manufacturer of Industrial Internet of Things control products and systems used to remotely collect, send, monitor, and act on data acquired from various environments. CBW is a leader in the IIoT control market with a product offering focused on engineering excellence. Learn more.
6/20/23
IFS has completed the acquisition of Poka, a market-leading provider of a connected worker platform based in Quebec. Poka’s platform empowers factory and field workers by enhancing their efficiency through training, troubleshooting, and development capabilities. This acquisition enables businesses to globally measure productivity across machinery and operators, gaining valuable insights into profitability, while also supporting compliance and safer working conditions as part of their ESG goals. Learn more.
6/19/23
BP3 Global, a leader in designing and delivering business process automation solutions, has completed the acquisition of Cape Town based Intelligent Automation consultancy DigiBlu. The acquisition enables the combined organization to address the rapidly growing client demand for Intelligent Automation services in North America, Europe and Southern Africa. Learn more.
6/15/23
Advanco, established as a global pharmaceutical and life sciences track and trace solutions provider, acquired manufacturing automation specialist Vantage Consulting Group. The company will continue to be called Advanco, with an enlarged client portfolio of over 100 blue chip clients. This means it is now the world’s largest independent provider of serialization solutions for the pharmaceutical and life sciences sector. Learn more.
6/15/23
MiddleGround Capital, an operationally focused private equity firm that makes control investments in middle market manufacturing B2B industrial and specialty distribution companies globally, has acquired A.M. Castle & Co. a leading provider of metals, services, and supply chain solutions serving industrial and aerospace customers. Learn more.
6/14/23
Flow Control Holdings, a portfolio company of Audax Private Equity and leading provider of sanitary-flow components to the pharmaceutical, food, and beverage end markets, has acquired the U.S. operations of Strahman Holdings, Inc. Strahman is a leading manufacturer of washdown equipment, sampling valves, and valve automation products to the pharmaceutical, F&B, and industrial end-markets. Learn more.
6/13/23
Ecoplant, an Israeli startup that develops new technologies to increase energy efficiency and thereby reduce air pollution, is acquired by the major American industrial corporation Ingersoll Rand. Ingersoll Rand is a global provider of innovative and mission-critical air, fluid, energy and medical technologies, providing services and solutions to increase industrial productivity and efficiency. Learn more.
6/13/23
EQT Mid Market Europe and EQT Mid Market Asia III have agreed to sell BBS Automation to MDAX-listed Dürr Group. Headquartered in Munich, Germany, BBS Automation helps companies automate their production processes and reduce energy consumption, waste and downtime, allowing customers to meet rapidly growing cost and sustainability demands. Learn more.
6/12/23
Percepto, the leading autonomous inspection and monitoring solution provider, announced a combined $67M Series C in equity and debt funding, led by Koch Disruptive Technologies (KDT), alongside new investors Zimmer Partners and one of the largest U.S. energy companies. Learn more.
6/12/23
Q-SYS, a division of QSC LLC, acquired Seervision, a Swiss-based industry pioneer in AI-driven camera automation software. The acquisition accelerates the Q-SYS strategy to develop and deliver a scalable and flexible software platform with intelligent audio, video and control technology that supports integration with leading unified communications & video conferencing applications in the era of post-pandemic hybrid work. Learn more.
6/6/23
LFM Capital, a private equity firm focused on lower middle market manufacturing and industrial services businesses, portfolio company, Accelevation LLC acquired Instor Solutions, Inc. Instor is a data center equipment integrator, focused on low-voltage electrical equipment build out and installation. Learn more.
6/5/23
Motion & Control Enterprises acquired Industrial Control Services, based in Zeeland, MI, is a value-added distributor of specialty automation products, including robotics, motion control, machine vision, barcoding systems, controls & networking, and safety solutions. Learn more.
6/5/23
Motion & Control Enterprises acquired Power & Pumps, headquartered in Jacksonville, FL, is a distributor of pumps, drives, blowers, vacuum, and power transmission products to municipal and industrial customers in Florida and Georgia. P&P is also the master distributor in North America for All Prime Pumps, a line of self-priming pumps sold to municipal and industrial end-users and resellers. Learn more.
6/5/23
Blackford Capital, a leading lower middle market private equity firm, acquired PACIV which specializes in industrial automation solutions. PACIV is a leading full-service provider of industrial process automation and systems integration primarily for manufacturers in the pharmaceutical and life sciences industries. Learn more.
5/2/23
AMETEK, Inc. acquired Bison Gear & Engineering Corp. (Bison), a leading manufacturer of highly engineered motion control solutions serving diverse markets and applications. Bison designs and manufactures custom motion control solutions for use in demanding and high precision applications within the automation, power, food and beverage, and transportation markets. Learn more.
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In this article, Clint Bundy, Managing Director with Bundy Group, was recently interviewed by Gary Cohen and Tyler Wall, the hosts of the Industrial Cybersecurity Pulse Podcast. The topic was to discuss the mergers and acquisitions (M&A) and capital placement activity that is occurring within the cybersecurity market. Given the tremendous amount of transaction activity for cybersecurity companies, Clint, Gary and Tyler had quite a bit to discuss. Clint also provided insights regarding what cybersecurity company owners can do to prepare for a potential sale or capital raise now and create additional value in their company.
Clint indicated that for owners it is important to know their options, including who might be potential parties on the other side of a transaction. He segregated cybersecurity buyers into the following two categories:
Clint noted how many new groups are aggressively seeking platform investments in the cybersecurity sector. With each successful financial sponsor exit from a cybersecurity investment, it signals to other sponsors the opportunity to achieve the same outcome in the industry.
The cybersecurity M&A market has been attractive and active for years, but what is the reason for this buyer attraction to the segment? Simply put, strategic buyers and financial sponsors are looking for stability, profitability, growth and scale, and the cybersecurity sector offers those fundamentals.
The cybersecurity M&A market has been active for the past 10-15 years, but 2018 is when one sees a substantial increase in activity occur. The increase is reflected in two metrics: the number of closed deals and the total cumulative transaction value of all market deals.
To be specific, in 2020 there were 471 cybersecurity transactions, which totaled $38 billion in transaction value.
In 2021, the number of cybersecurity deals increased to 480, which realized over $112 billion in total transaction value.
In 2022, the number of cybersecurity deals decreased to 410, approximately a 15% decline, and the total value of deals dropped to $48 billion, representing a 57% decline in transaction value. Simply put, the reason for the substantial decline in total transaction value was because of the pull-back in larger middle market and corporate-sized deals relative to 2020 and 2021. With hopeful stabilization in the credit markets, Clint expects the larger cybersecurity transactions to experience a resurgence.
A key means for achieving growth can be through add-on acquisitions. The strategic buyers and financial sponsors already in the cybersecurity market are actively looking to acquire such capabilities as new proprietary software/technology platforms or technology services, new clients, or added talent and management bench depth. Furthermore, it gives the firm the opportunity to increase the buyer’s financial profile at the immediate close of a transaction. Finally, an add-on acquisition tends to be a lower risk strategy relative to larger transactions, especially since the capital outlay isn’t as demanding on the buyer. In short, many seasoned buyers prefer the “buy” versus “build” approach in this market.
Cybersecurity owners and executives are often asking the question to the Bundy Group today about the state of the M&A market. At present, there are headwinds from a macroeconomic standpoint:
These headwinds can influence the cybersecurity market, and, to some extent, the valuations a company can receive in a sale.
However, the counterbalance to these headwinds, and another reason why Bundy Group remains optimistic about the industry, is the amazing growth in the cybersecurity market. Buyers are recognizing this continued cybersecurity market growth in a more challenging macro environment. From an M&A perspective, there is a supply and demand imbalance. There are more aggressive buyers and financial sponsors than cybersecurity companies to buy or invest in. This imbalance is creating a seller’s market, which plays to the advantage of owners and their respective company valuations.
Bundy Group remains bullish on the cybersecurity M&A market for 2023. A question remains if 2023 market performance can achieve the same activity levels as 2021. The cybersecurity market has strong fundamentals to drive M&A activity, and Bundy Group anticipates continued robust activity in the $10 million to $150 million transaction volume range.
From a seller’s perspective, it’s important to start as early as possible in assessing the strengths and weaknesses of the company using the stability, profitability, growth and scale metrics. That could include reviewing company financials and key performance indicators, understanding the company’s enterprise resource planning (ERP) systems and level of data offered, evaluating the nature and purchasing tendencies of the client base and assessing the strength of the executive and operational teams. Furthermore, Clint recommended an advisory team, which is there to support an owner in a sale of a company. This would help ensure that the organization is best prepared for a sale and then realizes maximum value in a competitive sale process.
For owners, whether you’re thinking of a sale now, later, or never, an owner should educate themselves and stay updated on the trends and activities within the cybersecurity market. To be specific, that includes staying current on valuation metrics, the steps for preparing a business for sale and knowing which buyers are active and a strong fit for a seller. A cybersecurity company is an owner’s asset, and it is in the owner’s best interest to cultivate it in case an owner ever decides to sell and realize a strong valuation.
In this article for Plant Engineering Magazine, Bundy Group provides an update on mergers & acquisitions and capital placement activity for companies that address the manufacturing and plant management fields.
2023 continues to demonstrate that even though macroeconomic headwinds are present (credit market uncertainty, inflation and rising interest rates), mergers and acquisitions and capital placement activity within the automation, industrial technology, material handling and plant management sectors continue to be strong. This resiliency is due to many reasons, which includes the stable, profitable and growing nature of these industries.
Transactions to note include Honeywell’s acquisition of Compressor Controls Corporation, Columbus McKinnon’s purchase of Montratec and MiddleGround Capital’s acquisition of Advantage Metal Products. The range of buyer types in the below transactions (public companies, financial sponsors and financial sponsor-owned platforms) highlight the range of options that business owners and management teams have when exploring strategic alternatives.
Bundy Group is currently active with numerous client engagements involving the above-mentioned industries. Over the coming months, we anticipate announcing several more business sale and capital placement transactions. We look forward to providing these relevant updates to Plant Engineeringmagazine readers.
5/19/23
SkySpecs, a global leader in wind energy technology, has acquired i4SEE, a leader in fully automated wind turbine data analytics and fleet optimization. The combined entity brings together world-class data insight and automation to help wind farm owners and operators to optimally invest in, maintain, and manage their assets for sustainable returns. Learn more.
5/18/23
Addtronics, LLC, a mission-driven holding company dedicated to acquiring, empowering, and growing leading robotic automation solution providers, has acquired Bow Robotics. Located in West Chester, Ohio, Bow provides spare-parts, rebuild & repair services, and preventative maintenance for industrial robots used by customers in a variety of end markets across the country. Learn more.
5/4/23
Helios Technologies, Inc. a global leader in highly engineered motion control and electronic controls technology for diverse end markets, signed a definitive agreement to acquire i3 Product Development. i3 is a custom engineering services firm, with over 55 engineers, embodying expertise in electronics, mechanical, industrial, embedded and software engineering. Learn more.
5/4/23
CHA Consulting, Inc. (CHA), an innovative engineering design, consulting and construction management firm based in Albany, NY, has acquired Javan Engineering, a full-service engineering firm serving the industrial, chemical, pharmaceutical, biotech, healthcare, and university markets. Learn more.
5/2/23
Sniffer Robotics, a leading environmental technology enabled services firm, announced first and substantial close of a $2 million seed funding round, led by the Michigan Angel Fund. Other investors include Michigan Rise, Naruhisa Nakagawa, and Abhishek Desai of Desai Ventures. Learn more.
5/2/23
MHM Automation Limited acquired all of the shares in Wyma Engineering (NZ) Limited (Wyma). Wyma is a world leading manufacturer of post-harvest vegetable and fruit handling equipment. It is based in Christchurch NZ, with operations in Europe and the UK. Wyma is majority owned by interests related to Andrew and Angela Barclay. Learn more.
4/26/23
Honeywell has plans to acquire Compressor Controls Corporation (CCC) from INDICOR, LLC for $670 million. CCC currently produces turbomachinery control and optimization solutions from control hardware to software and services. Honeywell will integrate CCC into its Process Solutions business, as well as use CCC technology to improve its carbon capture control solutions. Learn more.
4/26/23
Columbus McKinnon Corporation, a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, acquired montratec GmbH, a leading automation solutions company that designs and develops intelligent automation and transport systems for interlinking industrial production and logistics processes. Learn more.
4/25/23
ENSCO, Inc. a global pioneer in railway inspection technology, has entered into an Equity Purchase Agreement to acquire KLD Labs, Inc. a world-leading provider of automated wayside inspection technology and laser profiling solutions. Learn more.
4/25/23
MiddleGround Capital, an operationally focused private equity firm that makes control investments in North American middle market B2B industrial and specialty distribution companies, has acquired Advantage Metal Products, a provider of high-precision metal products, as an add-on for its Megatech platform. Learn more.
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Bundy Group, an industry-focused investment bank, announces that it has advised Environmental Options, a leading waste transportation provider, in a sale to Shamrock Environmental, a leading provider of essential environmental services, including non-hazardous wastewater treatment, waste management, industrial services and environmental construction. Shamrock Environmental is a portfolio company of CenterOak Capital, a Dallas-based private equity group. The transaction was led by Jim Mullens, Managing Director with Bundy Group.
Environmental Options is a waste transporter, permitted in 25 states that regularly delivers to disposal facilities throughout the eastern United States. Key solutions offered by Environmental Options include industrial services such as tank and oil water separator cleaning, waste disposal for small and large quantity generators, and retail supplies, including drums, parts washers, and gun cleaners.
“Environmental Options has been the industry standard in the waste transportation segment since 1984, and the company’s impressive growth over the past few years further validates the strength and value-proposition to its clients,” said Jim Mullens. “The partnership with Shamrock Environmental will offer Environmental Options substantial new resources and opportunities as the company continues to grow.”
“Jim and I have had a relationship for over 10 years, and it was an easy decision for me to hire Bundy Group once I decided the time was right to sell,” said Pam Westgate, President of Environmental Options. “We had a substantial buyer interest in acquiring Environmental Options over the years. Once engaged, Jim successfully managed the strategic buyers, through a competitive process, and was able to generate a transaction value much higher than the preliminary offers I received before hiring Bundy Group. Simply put, I couldn’t have achieved this accomplishment without the Bundy Group team.”
About Bundy Group
Established in 1989, Bundy Group is an industry-focused investment bank that specializes in representing business owners and management teams in business sales, acquisitions, and capital raises. The team of highly experienced investment bankers leverages extensive industry knowledge and skill to provide hands-on guidance to clients through every phase of the business transaction. Bundy Group has been a trusted partner in more than 250 closed deals over the past 33 years, providing high quality options, actionable insights, and delivery of optimal strategic fit at a premium value for our clients. Bundy Group is headquartered in Charlotte, NC and has additional offices in New York and Virginia.
Bundy Group Securities, LLC is a registered broker-dealer and member of FINRA and SIPC. More information on the background of Bundy Group Securities, LLC is available at FINRA's BrokerCheck.
In this article for Control Engineering Magazine, Bundy Group provides an update on mergers & acquisitions and capital placement activity in the automation market.
2023 continues to demonstrate that even though macroeconomic headwinds are present (credit market uncertainty, inflation, rising interest rates), mergers and acquisitions and capital placement activity within the automation and industrial technology sectors continue to be strong. This resiliency is due to many reasons, which includes the stable, profitable and growing nature of these industries.
Transactions to note include Honeywell’s acquisition of Compressor Controls Corporation, SureKap’s purchase of Volumetric, and MolGen’s acquisition of Netherlands-based Synchron Lab Automation. The range of buyer types in the below transactions (public companies, financial sponsors, financial sponsor-owned platforms) highlight the range of options that business owners and management teams have when exploring strategic alternatives.
Bundy Group is currently active with numerous client engagements involving the above-mentioned industries. Over the coming months, we anticipate announcing several more business sale and capital placement transactions. We look forward to providing these relevant updates to Control Engineering magazine readers.
5/24/23
LFM Capital, a private equity firm focused on lower middle market manufacturing and industrial services businesses portfolio company, SureKap LLC has acquired Volumetric Technologies. The companies’ product lines are highly complementary and both SureKap and Volumetric are well-positioned to benefit from the adoption of automation in the U.S. packaging industry. Learn more.
5/23/23
Global software company Nuix has acquired Rampiva, a workflow automation and job scheduling software provider. Rampiva is a long-term technology partner of Nuix, founded in 2016 to meet the needs of Nuix customers who wanted to achieve greater productivity by automating their data processing tasks. Learn more.
5/19/23
SkySpecs, a global leader in wind energy technology, has acquired i4SEE, a leader in fully automated wind turbine data analytics and fleet optimization. The combined entity brings together world-class data insight and automation to help wind farm owners and operators to optimally invest in, maintain, and manage their assets for sustainable returns. Learn more.
5/18/23
Addtronics, LLC, a mission-driven holding company dedicated to acquiring, empowering, and growing leading robotic automation solution providers, has acquired Bow Robotics. Located in West Chester, Ohio, Bow provides spare-parts, rebuild & repair services, and preventative maintenance for industrial robots used by customers in a variety of end markets across the country. Learn more.
5/17/23
SWAPP, a Houston- and Tel Aviv-based automation software provider for architectural construction documents, raised $11.5 million in Series A funding. Eurazeo led the round and was joined by Entrée Capital, Activum SG Ventures and XTX Ventures. Learn more.
5/11/23
Medical Manufacturing Technologies (MMT), a portfolio company of Arcline Investment Management and a leading global provider of medical device manufacturing solutions, acquired Ward Automation Galway (Ward Galway), an Ireland-based provider of custom automation solutions. Learn more.
5/4/23
Helios Technologies, Inc. a global leader in highly engineered motion control and electronic controls technology for diverse end markets, signed a definitive agreement to acquire i3 Product Development. i3 is a custom engineering services firm, with over 55 engineers, embodying expertise in electronics, mechanical, industrial, embedded and software engineering. Learn more.
5/4/23
CHA Consulting, Inc. (CHA), an innovative engineering design, consulting and construction management firm based in Albany, NY, has acquired Javan Engineering, a full-service engineering firm serving the industrial, chemical, pharmaceutical, biotech, healthcare, and university markets. Learn more.
5/2/23
MHM Automation Limited acquired all of the shares in Wyma Engineering (NZ) Limited (Wyma). Wyma is a world leading manufacturer of post-harvest vegetable and fruit handling equipment. It is based in Christchurch NZ, with operations in Europe and the UK. Wyma is majority owned by interests related to Andrew and Angela Barclay. Learn more.
5/2/23
Sniffer Robotics, a leading environmental technology enabled services firm, announced first and substantial close of a $2 million seed funding round, led by the Michigan Angel Fund. Other investors include Michigan Rise, Naruhisa Nakagawa, and Abhishek Desai of Desai Ventures. Learn more.
4/26/23
Columbus McKinnon Corporation, a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, acquired montratec GmbH, a leading automation solutions company that designs and develops intelligent automation and transport systems for interlinking industrial production and logistics processes. Learn more.
4/26/23
Barcoding, Inc., the leader in supply chain efficiency, accuracy, and connectivity, acquired Procensis, Inc., a leading mobility solutions provider based in Warminster, Pennsylvania. This acquisition represents Barcoding’s focused investment in enterprise mobility and managed services to support their growing customer base. Learn more.
4/26/23
MolGen has acquired Dutch automation company Synchron Instrumenten BV, also known as Synchron Lab Automation. With this acquisition MolGen will expand its existing portfolio and its ability to build high-end automation solutions for DNA/RNA purification, library preparation and NGS setup to support MolGen’s reagent business. Learn more.
4/25/23
ENSCO, Inc. a global pioneer in railway inspection technology, has entered into an Equity Purchase Agreement to acquire KLD Labs, Inc. a world-leading provider of automated wayside inspection technology and laser profiling solutions. Learn more.
4/25/23
Raptor Technologies , the leader in school safety software, has acquired SchoolPass, Inc. a rapidly-growing provider of cloud-based attendance automation, dismissal automation, visitor management and emergency management software for K-12 schools. Learn more.
4/25/23
MiddleGround Capital, an operationally focused private equity firm that makes control investments in North American middle market B2B industrial and specialty distribution companies, has acquired Advantage Metal Products, a provider of high-precision metal products, as an add-on for its Megatech platform. Learn more.
3/8/23
Skalar was acquired by Battery Ventures for an undisclosed amount with close date of March 8. Owner and operator of a manufacturing company intended to automated analyzers for laboratory and process-industry. Learn more.
Bundy Group is a CFE Media and Technology content partner.
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In this article for Industrial Cybersecurity Pulse, Bundy Group provides an update on mergers & acquisitions and capital placement activity in the cybersecurity market.
The first few months of 2023 witnessed a tremendous number of mergers and acquisitions (M&A) and capital placement activity in the cybersecurity segment. Highlighted below are 22 transactions, which are a representative sample of transactions that occurred in the cybersecurity market through April 2023. The selling organizations offer such solutions as consulting, cloud security, managed services and value-added technology reselling. In addition, the list of cybersecurity buyers features several powerful brands, including Cisco, Accenture, Carlyle and Trend Micro. Based on the conversations and client engagements that Bundy Group maintains within the cybersecurity segment, we don’t anticipate any slowdown in cybersecurity M&A and capital placement activity within the near future.
4/19/23
Akamai Technologies, Inc. the cloud company that powers and protects life online, has entered into a definitive agreement to acquire Neosec, an API detection and response platform based on data and behavioral analytics. Learn more.
4/4/23
Trace3 has acquired Set Solutions, an advanced cybersecurity consulting and procurement solutions provider. The acquisition continues Trace3’s strategic expansion plan. The investment allows the combined companies to deepen cybersecurity capabilities to drive success for commercial and enterprise clients. Learn more.
4/4/23
Utimaco, the global provider of IT security solutions, has acquired conpal GmbH for the protection of confidential data through encryption and authentication. Utimaco was already selling conpal products before the acquisition, and with the integration, it can offer customers a complete portfolio of IT security. Learn more.
3/29/23
Cisco is pleased to announce its intent to acquire Lightspin Technologies Ltd. a privately-held cloud security software company headquartered in Tel Aviv. Lightspin offers a holistic solution that provides end-to-end cloud security posture management (CSPM) across cloud-native resources. Learn more.
3/29/23
Stefanini Group, an information security company with its American headquarters in Southfield and global headquarters in Sao Paulo, Brazil, has acquired Brazil-based cybersecurity firm Safeway Consultancy. Learn more.
3/22/23
Cybersecurity firm XM Cyber Inc., owned since November 2021 by Schwarz Group, has acquired attack interception cybersecurity firm Confluera Inc. Founded in 2018, Confluera’s platform offers real-time attack interception and defense by deterministically identifying complex, multistage attacks. Learn more.
3/21/23
Managed services provider Interactive has ramped up its cyber expertise with the acquisition of Perth-based Slipstream Cyber Security. Founded by Brian Smith in 2017, Slipstream Cyber Security offers 24/7 cyber defence with an Australian-based cyber security operations centre, managed detection and response and penetration testing. Learn more.
3/15/23
Rapid7, Inc. a leader in cloud risk and threat detection, has acquired Minerva Labs, Ltd., a leading provider of anti-evasion and ransomware prevention technology. Rapid7’s Managed Detection and Response (MDR) services provide customers elevated detection and response capabilities across their cloud, on-premise and extended attack surfaces. Learn more.
3/14/23
Parsons Corporation has entered into a definitive agreement to acquire IPKeys Power Partners, Inc. IPKeys Power Partners will provide Parsons with cloud-based cybersecurity, software solutions and technologies to accelerate the global clean energy transition. Learn more.
3/14/23
Optiv, the cyber advisory and solutions leader, has acquired Maryland-based ClearShark LLC and ClearShark Services Inc. a premier advisor and top value-added reseller of cybersecurity and modernization technology to the United States federal government. Learn more.
3/2/23
Hewlett Packard Enterprise has entered into a definitive agreement to acquire Tel-Aviv, Israel-based Axis Security, a cloud security provider, expanding its edge-to-cloud security capabilities by offering a unified Secure Access Services Edge (SASE) solution to meet the increasing demand for integrated networking and security solutions delivered as-a-service. Learn more.
3/2/23
Summa Equity announced the acquisition of a majority stake in Logpoint, the creator of a reliable, innovative cybersecurity operations platform — empowering organizations worldwide to thrive in a world of evolving digital threats. Learn more.
3/1/23
Cherokee Federal, the federal contracting division of Cherokee Nation Businesses, announced the acquisition of Criterion Systems, a leading cybersecurity and IT services company. Learn more.
2/27/23
CyberMaxx, Inc., a tech-enabled cybersecurity services company, announced the acquisition of CipherTechs LLC. CyberMaxx and CipherTech have joined forces to deliver a full range of cyber security solutions including offensive, defensive, digital forensics/incident response and governance, risk & compliance security services. Learn more.
2/23/23
Nomios Group, a leading European provider of cybersecurity services and solutions, has completed the acquisition of a majority stake in Aditinet, a prominent cybersecurity company in the Italian market. The acquisition strengthens Nomios’ European position as one of the leading cybersecurity service companies. Learn more.
2/22/23
Trend Micro Incorporated, a global cybersecurity leader, has acquired Anlyz, a leading provider of security operations center (SOC) technology. The acquisition will extend Trend’s orchestration, automation and integration capabilities and will enable enterprises and Managed Security Service Providers (MSSPs) to improve operational efficiencies, cost effectiveness and security outcomes. Learn more.
2/14/23
Uptime Institute, Global Digital Infrastructure Authority and Dominus Capital, L.P. have completed the acquisition of LEET Security, an independent cyber security risk evaluation methodology and rating system. Learn more.
2/14/23
Zscaler, Inc., (NASDAQ: ZS), the leader in cloud security, announced the intent to acquire Canonic Security, a SaaS application security platform innovator. Canonic’s platform is designed to prevent organizations’ growing risks of SaaS supply chain attacks. Learn more.
2/13/23
Accenture (NYSE: ACN) has acquired Morphus, a privately held Brazil-based cyber defense, risk management and cyber threat intelligence services provider, expanding its practice capabilities in Brazil and Latin America. Financial terms were not disclosed. Learn more.
2/9/23
SPAC Corner Growth Acquisition Corp. (NASDAQ:COOL) intends to merge with cybersecurity and digital transformation services provider Noventiq. Corner Growth said that it had signed a letter of intent and exclusive term sheet for the deal. Learn more.
2/1/23
Radiant Logic, the Identity Data Fabric company, has entered into a definitive agreement to acquire Brainwave GRC, a leader in Identity Governance and Analytics (IGA) headquartered in France. Learn more.
1/11/23
Global investment firm Carlyle has led a $55m Series B investment round in Hack The Box, a rapidly growing continuous cybersecurity upskilling and talent assessment platform. Learn more.
Bundy Group is a CFE Media and Technology content partner.
In this article for Control Engineering Magazine, Bundy Group provides an update on mergers & acquisitions and capital placement activity in the automation market.
Bundy Group interviewed Alex Chausovsky, vice president of analytics and consulting with Miller Resource Group. Alex and Miller Resource Group are specialists in the Automation space, and they strive to understand their clients’ vision, goals, and culture and aim to find candidates whose aspirations, skills, and values are a match. They discussed topics related to talent acquisition in the automation industry.
Clint Bundy: Business owners that the Bundy Group team represents, both in the automation sector and in other industries, say that one of their greatest challenges is finding talented employees and management. Is that your experience, as well? What are the reasons behind this skilled labor void? Is there any light at the end of the tunnel for companies?
Alex Chausovsky: To put it simply, there just aren’t enough skilled workers out there to fill all the job openings in this country. Even now, as the US economy slows noticeably from the pace of expansion witnessed over the past 18 months and heads for a likely recession later this year and into early 2024, there are still 9.9 open positions out there, including nearly 700K in manufacturing alone. With about 6 million people actively looking for work that still leaves a gap of about four million workers.
I suppose the silver lining to the worker shortage is that as the macroeconomic environment continues to deteriorate in the months to come, the gap will get smaller. However, it would take a significant recession to swing the pendulum from a candidate-driven market to an employer-driven one in the near term.
Bundy: Who are the best kinds of candidates to target in a talent acquisition search? How can an owner or executive team identify those candidates?
Chausovsky: The first step in improving a company’s access to job seekers is to understand that not all candidates are cut from the same cloth. If an owner or executive is struggling to understand why no one is responding to the job ads the business is running in online portals such as monster.com or indeed.com, in local advertising, or on a website, then they are not alone. Millions of businesses around the country are failing to hire workers because they are not targeting the right individuals. Few companies understand the difference between active and passive talent, yet it is a key element in increasing the efficacy of a talent acquisition strategy.
Active candidates are:
Passive candidates, on the other hand, are:
If your organization purposefully targets passive candidates, the improvements in efficacy can be significant, with some companies realizing nearly 70% gains in talent acquisition versus those that exclusively target active candidates with job postings.
Bundy: What kind of approach should a company be taking to become more attractive to prospective candidates?
Chausovsky: Are owners and executives treating talent attraction as a sales and marketing function within their organizations? If not, they should be! There are four pillars of talent attraction that, according to our research, have the biggest impact on drawing the top candidates to a company:
If a company can eloquently “sell” why it is an attractive place to work using the elements described above, then it will see a significant improvement in the number of people that want to become a part of the organization.
Bundy: It’s a competitive talent acquisition marketplace in the Automation segment, and it must be key for a company to differentiate with interviewees and then find ways to close with strong candidates. Can you provide some suggestions on how companies can best accomplish those goals?
Chauskovsky: When an executive interviews a candidate, does that professional know where the priorities lie for the applicant? It’s incredibly valuable to understand what motivates the people that will be working for your company. Do they care more about money, remote work possibilities, advancement opportunities, or something else?
If you know what they care about, you can structure the conversation to focus on those topics, thereby increasing the likelihood that the candidate will accept an offer if you were to make them one. For this reason, every candidate that we interview at Miller Resource Group and present to clients has something called a CLAMPS profile. See below for a detailed breakdown of this assessment.
C – Challenge; The work itself, technology, market, etc.
L – Location; Geography, ability to live & work where candidates want.
A – Advancement; Career growth, increasing responsibility.
M – Money; Overall Compensation association with the position.
P – People; The manager and coworkers related to the position.
S – Security; Likelihood of long-term employment or physical safety.
We ask candidates to rank these in order of priority to them, and then share these insights with the hiring authority so that they can tailor the conversation to focus on the items the candidate cares most about. The result is a much higher offer-to-acceptance rate, and a more streamlined hiring process.
If your organization employs the three tips outlined above and strives to lead when it comes to candidate attractiveness rather than follow the herd, you will thrive in this candidate-driven labor market.
4/19/23
Skylla Technologies, the MIT spinoff revolutionizing automation with people-centric robot intelligence, announced its acquisition by Movensys, a global motion control platform company headquartered in South Korea. Learn more.
4/17/23
Eagle Automation, a leader in industrial Valve Automation, Flow Measurement, Instrumentation, and Controls, acquired Commercial Radio, Midland, TX. Since 2003, Commercial Radio has become a trusted distributor of Industrial Communications products including wired, Wi-Fi, radio, microwave, cameras, solar, antennas and towers. Learn more.
4/17/23
Scandinavian mid-market GP Polaris has acquired a majority stake in Sealing System, a Danish supplier and production of packaging and palletizing lines, according to a statement. Learn more.
4/17/23
East West Manufacturing, LLC, an integrated design, engineering, manufacturing, and distribution services partner for original equipment manufacturers and distributors throughout North America and Europe, has acquired Eastprint Incorporated, a printed electronics solutions provider. Learn more.
4/13/23
EBSCO Capital Announces the Acquisition of Industrial Electronic Controls for Bailey International. As a leader in the manufacturing and distribution of mobile hydraulic power solutions, Bailey acquired IEC to expand its product portfolio and provide additional expertise in electronic throttles, displays, and sensor manufacturing. Learn more.
4/12/23
Emerson and NI have entered into a definitive agreement under which Emerson will acquire NI for $60 per share in cash at an equity value of $8.2 billion. The acquisition of NI and its software-connected automated test and measurement systems will help to enhance Emerson’s automation capabilities. Learn more.
4/11/23
APCT, a designer and custom manufacturer of advanced technology printed circuit boards, has completed the acquisition of San Diego PCB Design. APCT, headquartered in Santa Clara, California, is a portfolio company of Industrial Growth Partners. Learn more.
4/6/23
VettaFi, a data, analytics, digital distribution, and thought leadership company that helps asset managers solve their most pressing and complex challenges, has acquired the ROBO Global index suite. ROBO Global indexes focus on helping investors capture the unique opportunities of fast-growing robotics, artificial intelligence, and healthcare technology companies around the world. The suite includes the first benchmark indexes tracking the robotics and AI revolution for investors. Learn more.
4/4/23
Covariant, the world’s leading AI Robotics company, raised an additional $75 million in Series C funds, bringing its total funding to $222 million. Returning investors Radical Ventures and Index Ventures co-led the round, which also saw additional funding from returning investors Canada Pension Plan Investment Board and Amplify Partners. Learn more.
4/4/23
Applied Industrial Technologies acquired Advanced Motion Systems Inc. a provider of automation products, services, and engineered solutions focused on a full range of machine vision, robotics, and motion control products and technologies. Learn more.
4/3/23
Convergix Automation Solutions, an automation solutions company backed by leading private equity firm Crestview Partners, has completed the acquisition of Eagle Technologies, a Bridgman, Michigan-based systems integrator specializing in turnkey automated production and testing solutions. Learn more.
4/3/23
Architect Equity, a private equity firm focused on the lower middle market, announced the sale of Solution Net Systems, a leading global supplier of industrial automation solutions, to Alstef Group, a leading provider of automated turnkey solutions for airport, intralogistics and parcel markets. Learn more.
4/3/23
CCL Industries Inc. (“CCL”), a world leader in specialty label, security and packaging solutions for global corporations, government institutions, small businesses and consumers, announced it has acquired eAgile Inc. and the intellectual property of Alert Systems ApS. Learn more.
3/29/23
Sverica Capital Management LP, a private equity investment firm, made a strategic investment in Hirebotics, an innovative, high-growth automation company that has created a differentiated collaborative robot solution designed specifically for welding applications. Learn more.
3/29/23
Agôn Electronics, a company supported by Argos Wityu, signed the agreement to acquire MIOS Elettronica, an Italian provider of customized and advanced solutions for the Railway industry. Learn more.
Bundy Group is a CFE Media and Technology content partner.
Related Articles
In this article for Plant Engineering Magazine, Bundy Group provides an update on mergers & acquisitions and capital placement activity for companies that address the manufacturing and plant management fields.
Bundy Group recently represented Bob Zeigenfuse in a sale of Avanceon to Vinci Energies. Founded in 1984, Avanceon is an automation solutions and systems integration firm that works with clients across a variety of end-markets, including infrastructure, food & beverage, pharma, data centers and chemicals. Zeigenfuse was a long-time relationship of Bundy Group’s, and he retained our firm to market the business to a pool of quality buyers that have a seasoned acquisition track record in the automation sector. Vinci Energies submitted a preemptive offer worthy of our client pausing marketing efforts and moving forward with this strategic buyer.
Zeigenfuse offered insights related to the sale of Avanceon highlighted below.
Bundy Group: As your investment banking advisor, I know that you had a lot of buyer options to consider. Why did you select VINCI Energies as the buyer for your firm?
Bob Zeigenfuse: There are certainly a lot of great buyer options out there! My foremost consideration was my beloved associates at Avanceon. The key criteria I had for my associates in a transaction included:
My needs were straightforward:
At the conclusion of the transaction, I can say with confidence that Vinci Energies fulfilled all of my above expectations.
Bundy Group: What advice would you give owners in the Automation market as they contemplate how to build value in their business?
Bob Zeigenfuse: Build value that buyers want! There are several key components that make up this business value:
Bundy Group: I’m a believer in the advisory, or deal, team that is there to support an owner in the run up to, and then through, a sale process. Who was critical to you from an advisory standpoint and why?
Zeigenfuse: There are several key players for an owner to have in his corner in a transaction:
4/17/23
Scandinavian mid-market GP Polaris has acquired a majority stake in Sealing System, a Danish supplier and production of packaging and palletizing lines, according to a statement. Learn more.
4/17/23
East West Manufacturing, LLC, an integrated design, engineering, manufacturing, and distribution services partner for original equipment manufacturers and distributors throughout North America and Europe, has acquired Eastprint Incorporated, a printed electronics solutions provider. Learn more.
4/13/23
EBSCO Capital Announces the Acquisition of Industrial Electronic Controls for Bailey International.As a leader in the manufacturing and distribution of mobile hydraulic power solutions, Bailey acquired IEC to expand its product portfolio and provide additional expertise in electronic throttles, displays, and sensor manufacturing. Learn more.
4/4/23
Applied Industrial Technologies acquired Advanced Motion Systems Inc. a provider of automation products, services, and engineered solutions focused on a full range of machine vision, robotics, and motion control products and technologies. Learn more.
4/4/23
Technical Safety Services (TSS) LLC, a leader in controlled environmental equipment services, is excited to announce the acquisition of Precision Air Technology. Precision Air Technology (PAT), founded in 1994 and headquartered in North Carolina, offers best-in-class Cleanroom Certification, Microbial Testing, and Testing/Calibration services in addition to providing HEPA filters, HVAC Air Filters, and associated installation services. Learn more.
4/3/23
Convergix Automation Solutions, an automation solutions company backed by leading private equity firm Crestview Partners, has completed the acquisition of Eagle Technologies, a Bridgman, Michigan-based systems integrator specializing in turnkey automated production and testing solutions. Learn more.
4/3/23
Architect Equity, a private equity firm focused on the lower middle market, announced the sale of Solution Net Systems, a leading global supplier of industrial automation solutions, to Alstef Group, a leading provider of automated turnkey solutions for airport, intralogistics and parcel markets. Learn more.
3/29/23
Sverica Capital Management LP, a private equity investment firm, made a strategic investment in Hirebotics, an innovative, high-growth automation company that has created a differentiated collaborative robot solution designed specifically for welding applications. Learn more.
3/29/23
Agôn Electronics, a company supported by Argos Wityu, signed the agreement to acquire MIOS Elettronica, an Italian provider of customized and advanced solutions for the Railway industry. Learn more.
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Bundy Group, a 33-year-old, industry-focused investment bank, announces that it has advised Avanceon, a leading industrial automation systems integration firm, in a sale to VINCI Energies, an international operator of energy technology dedicated to accelerating energy transition and digital transformation. The transaction was led by Clint Bundy, Managing Director with Bundy Group.
Avanceon, founded in 1984, is a full-service industrial automation systems integrator with a diverse background in successful system implementation for a broad spectrum of industries. The firm employs a wide range of control, computing, network, and software technologies, which include project management, controls system design, system integration, and manufacturing IT services.
“For the past 38 years, Bob Zeigenfuse and his management team have built an outstanding organization, which has serviced clients across the globe, and the Bundy Group team was pleased to advise Avanceon in a sale,” said Clint Bundy. “Under the VINCI Energies umbrella, Avanceon will have the opportunity to further accelerate its growth and expand its proprietary technology offerings to an even broader geographic customer base.”
“I engaged Clint and the Bundy Group team because of our long-time relationship and their 15-year track record in the automation, system integration, and technology sectors,” said Bob Zeigenfuse, President and Owner of Avanceon. “Clint’s thoughtful, objective advice and knowledge of the automation M&A market were invaluable to me from the beginning of the process through to transaction close. I feel fortunate to have had the Bundy Group team as my investment banking advisor.”
Bundy Group has significant experience in the automation, technology, and business services sectors, and has previously advised clients including MR Systems, GrayMatter, Dorsett Controls, and Custom Controls Unlimited, among others. For more information about our industry expertise and other recent transactions, visit Controls & Automation - Bundy Group.
About Bundy Group
Bundy Group is an industry-focused investment bank that specializes in representing business owners and management teams in business sales, acquisitions, and capital raises. The team of highly experienced investment bankers leverages extensive industry knowledge and experience to provide hands-on guidance to clients through every phase of the transaction. With more than 250 closed deals over the past 33 years, Bundy Group’s primary goals are to provide high quality options and actionable insights and to deliver an optimal strategic fit at a premium value for our clients.
Bundy Group Securities, LLC, is a registered broker-dealer and member of FINRA and SIPC. Check the background of Bundy Group Securities, LLC at FINRA's BrokerCheck. Testimonials may not be representative of the experience of other customers and are no guarantee of future performance or success.
In this article for Plant Engineering Magazine, Bundy Group provides an update on mergers & acquisitions and capital placement activity for companies that address the manufacturing and plant management fields.
With great uncertainty in the global economy today, there is a common question we are on the receiving end of from business owners in the industrial technology and automation sectors: “What impact is this economy having on the mergers & acquisitions market and the value of my business?” Our response to owners is often broken into two parts: A) the effect on the overall automation and industrial technology markets B) the effect at the individual company level.
While numerous industries are experiencing difficulties due to economic challenges, the Bundy Group team sees no signs of slowing industrial technology market growth over the next few years. In a June 2022 report, HFS pointed out that “COVID-19 was a wake-up call for firms that had not yet implemented Industry 4.0” solutions. In addition, HFS added that these industrial technology solutions “emerged as a key driver in helping companies survive the pandemic.” To further this market validation, Fortune Business Insights indicated in a March 2022 report that the global industrial automation market is projected to increase from $205 billion in 2022 to $395 billion by 2029.
Bundy Group maintains continual discussions with industrial technology companies of many types, including system integrators, consulting firms, software providers, and manufacturers. Nearly all of these owners and executives indicate that their industrial end-user clients are demanding industrial technology solutions as much as ever for the plant floor and its equipment + systems. In addition, the pace of phone calls to our organization from strategic and financial sponsor buyers seeking acquisitions and investments in the industrial technology market has not slowed over the past year. In comparison, the key public equity market indexes have experienced an investor pullback with “the Dow, S&P and Nasdaq” decreasing by “21%, 25% and 33% year-to-date, respectively.”
Company-specific: While residing in the attractive industrial technology industry is a huge asset for a company, the individual fundamentals of an organization are critical for demonstrating value. When Bundy Group provides insights to owners on company valuation ranges before we are engaged to sell a firm or assist in raising capital, we assess numerous features (example – profit margins, stickiness of client relationships, management team, etc….) For instance, if an industrial technology company continues to realize growth and profitability, or it generates new client contracts, in today’s an uncertain environment, then it could be argued that a firm’s value has gone up!
Jim Beretta, president of Customer Attraction, a boutique marketing consultancy with a focus on robotics, automation and advance manufacturing, offered insights on how individual company dynamics are a major driver of business value for an organization. Beretta said, “Even in this uncertain economic environment, companies are still seeking growth by acquisition in the automation sector.” He further adds that “seasoned buyers put a great deal of emphasis on attributes such as resilient end-user industries, attractive geographies, and differentiated capabilities when evaluating acquisition opportunities. If an Industry 4.0 solutions provider can demonstrate that it has strong clients, industries, contracts, expertise, etc… then it could demand a premium value in this buyer-rich automation mergers & acquisitions market.”
In summary, Bundy Group continues to monitor the performance of the automation market as well as individual organizations within this attractive segment. While no business or industry is completely immune to economic downswings, most performance indicators for the industrial technology market and firms within this industry continue to be positive. The owner of an industrial technology solutions firm should stay attuned to market trends, as well as his or her own firm’s appeal to the mergers & acquisitions market, as these are major determinants of a company’s valuation.
2/2/23
Italia Technology Alliance (ITA Holding) continues its strategic development and welcomes Taiprora S.r.l. into its social structure, a consolidated Abruzzo-based company that has been creating software and automation systems for production and logistics for 30 years. Learn more.
1/31/23
Addtronics, LLC (“Addtronics”), a mission-driven holding company dedicated to acquiring, empowering, and growing leading robotic automation solution providers, has acquired Missouri Tooling & Automation, LLC. (“MTA”). MTA is a leading custom robotic automation systems provider based in Lebanon, Missouri. Learn more.
1/27/23
Galco Industrial Electronics, Inc. (Galco) has acquired Zesco, Inc., a regional automation solutions provider located in Brecksville, Ohio. “The acquisition of Zesco further positions Galco as a global leader in the industrial automation and motion control industry,” said Allison Sabia, president and CEO of Galco. Learn more.
1/24/23
Built Robotics, the inventor of the robotic Exosystem and leader in construction autonomy, acquired Roin Technologies, the makers of the first automated concrete power trowel. The acquisition will grow the capabilities of Built’s engineering team and accelerate key technological developments. Learn more.
12/20/22
IPS, a North American leader in single-source solutions for industrial and commercial power and mechanical processes, has acquired Evans Enterprises, Inc (Evans). The sale includes all eight Evans locations, servicing customers across the South and Central United States. For IPS, these additional locations add services to underserved markets and further enhance its industry-leading network of 64 locations. Learn more.
Bundy Group is a CFE Media and Technology content partner.
