Demographics in North America strongly suggest that over the next 10 years, a very large number of privately held businesses will change controlling ownership due simply to retirement. In addition, the financial environment is favorable enough that funds are available for financing transactions; these funds need to be employed in a coherent, strategic manner.
For current metal fabrication owners to maximize the value of their enterprises, it is vital that they understand clearly what drives enterprise valuation and what actions are available to enhance that value. Further, they need to know what transaction structures are available.
This whitepaper is a summary version of an FMA eBook of the same title, condensed to address only the major factors, or parameters, that determine the realizable valuation of custom metal fabrication and related businesses.