A Good Acquisition Offer Goes Horribly Wrong
Impres Engineering is a Computer Numerical Control (CNC) machining company specializing in custom machined aluminum products in Grand Rapids, Michigan. If you want a product prototype made of aluminum to pitch investors or would-be customers, Ross Hoek is your guy.
After 21 years running his business, Hoek decided it was time to sell his 16-employee company with over $2 million in annual sales. He got several offers and settled on one that would pay him $3 million – $2.25 million up front with the balance paid over time.
It all sounded good in theory, so Hoek agreed to the terms and to an employment contract with the new owners. However, within a year, Hoek had stopped receiving the agreed upon payments and had been fired from the company he started.
In this episode, you’ll learn:
- The special considerations used when establishing the value of a manufacturing company
- How your equipment can be used to ensure an acquirer pays you what they owe
- The one thing Hoek wished he’d done when preparing a share purchase agreement
- How to protect yourself if your deal goes south