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Acquisition model for small privately held manufacturing businesses in the United Kingdom

Alm, Alexander and Hagander, Richard (2017) MIO920
Production Management
Abstract
Issue of study: The plastic injection moulding industry has become highly competitive
in terms of lead times and pricing, following an increase in low-cost
manufacturing from Asia, as a part of the full supply chain. To remain
competitive, mould tool manufacturers are looking to complement
new tool manufacturing with local after-sales services in countries
where their mould tools are being used. Unless the mould tool
manufacturer already has local after-sales services in the designated
country or area, they need to either construct a facility focusing on
after-sales services or acquire a company already specialized in aftersales
activities.
When searching for potential candidates to acquire, an acquisition
model tailored around... (More)
Issue of study: The plastic injection moulding industry has become highly competitive
in terms of lead times and pricing, following an increase in low-cost
manufacturing from Asia, as a part of the full supply chain. To remain
competitive, mould tool manufacturers are looking to complement
new tool manufacturing with local after-sales services in countries
where their mould tools are being used. Unless the mould tool
manufacturer already has local after-sales services in the designated
country or area, they need to either construct a facility focusing on
after-sales services or acquire a company already specialized in aftersales
activities.
When searching for potential candidates to acquire, an acquisition
model tailored around the industry needs to be developed. The model
needs to be developed both in accordance to the prerequisites of the
company looking to acquire, and the market in which it is looking to
expand.
Purpose: The purpose of this thesis is to develop an acquisition model specific
to the plastic injection moulding industry. The acquisition model and
M&A strategy will be developed for the case company Emikron Group
and subsequently applied on the United Kingdom market to test its
effectiveness in identifying qualified candidates for acquisition.
Objective(s): The objectives involve:
- To develop a model for candidate search & evaluation, as first
phase of M&A.
- Identifying what it takes to be competitive in the United
Kingdom in terms of after-sales services.
- Apply the developed model through identifying the critical
success factors and needs of the case company.
- Develop an acquisition strategy suitable for the Case.
Methodology: By investigating existing models for the first stages of M&A on a new
acquisition model is developed which is specifically tailored towards
smaller companies within the plastic injection moulding industry.
Using a case company for testing the model, the methodology will
involve a highly quantitative and qualitative analysis of current
operations. Finding suitable candidates that fit the existing acquisition
plan in the United Kingdom will first be gathered using second hand
information through search engines. The final candidates will be
subjected to an on-site analysis where the authors visit the facilities
and inspect the organizations personally.
Conclusions: Applying the developed acquisition model on the case company
yielded a successful result in compliance with the prerequisites set by
Emikron Group. It is the authors’ opinion that this strategy can be
applied to a variety of different industrial manufacturing industries
apart from plastic injection moulding, as well as in different countries
facing similar circumstances. (Less)
Please use this url to cite or link to this publication:
author
Alm, Alexander and Hagander, Richard
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
keywords
acquisition model, acquisition plan, injection moulding market, injection moulding industry, plastic injection moulding, plastic injection mould tools, after-sales services, private company acquisition, M&A strategy, M&A model, acquisitions, mergers & acquisitions, corporate finance, investment strategy, UK toolmakers.
other publication id
16/5561
language
English
id
8903166
date added to LUP
2017-02-14 14:57:54
date last changed
2017-02-14 14:57:54
@misc{8903166,
  abstract     = {{Issue of study: The plastic injection moulding industry has become highly competitive
in terms of lead times and pricing, following an increase in low-cost
manufacturing from Asia, as a part of the full supply chain. To remain
competitive, mould tool manufacturers are looking to complement
new tool manufacturing with local after-sales services in countries
where their mould tools are being used. Unless the mould tool
manufacturer already has local after-sales services in the designated
country or area, they need to either construct a facility focusing on
after-sales services or acquire a company already specialized in aftersales
activities.
When searching for potential candidates to acquire, an acquisition
model tailored around the industry needs to be developed. The model
needs to be developed both in accordance to the prerequisites of the
company looking to acquire, and the market in which it is looking to
expand.
Purpose: The purpose of this thesis is to develop an acquisition model specific
to the plastic injection moulding industry. The acquisition model and
M&A strategy will be developed for the case company Emikron Group
and subsequently applied on the United Kingdom market to test its
effectiveness in identifying qualified candidates for acquisition.
Objective(s): The objectives involve:
- To develop a model for candidate search & evaluation, as first
phase of M&A.
- Identifying what it takes to be competitive in the United
Kingdom in terms of after-sales services.
- Apply the developed model through identifying the critical
success factors and needs of the case company.
- Develop an acquisition strategy suitable for the Case.
Methodology: By investigating existing models for the first stages of M&A on a new
acquisition model is developed which is specifically tailored towards
smaller companies within the plastic injection moulding industry.
Using a case company for testing the model, the methodology will
involve a highly quantitative and qualitative analysis of current
operations. Finding suitable candidates that fit the existing acquisition
plan in the United Kingdom will first be gathered using second hand
information through search engines. The final candidates will be
subjected to an on-site analysis where the authors visit the facilities
and inspect the organizations personally.
Conclusions: Applying the developed acquisition model on the case company
yielded a successful result in compliance with the prerequisites set by
Emikron Group. It is the authors’ opinion that this strategy can be
applied to a variety of different industrial manufacturing industries
apart from plastic injection moulding, as well as in different countries
facing similar circumstances.}},
  author       = {{Alm, Alexander and Hagander, Richard}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Acquisition model for small privately held manufacturing businesses in the United Kingdom}},
  year         = {{2017}},
}