SMT007 Magazine

SMT007-Oct2019

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42 SMT007 MAGAZINE I OCTOBER 2019 Feature Interview by the I-Connect007 Editorial Team In this interview with the I-Connect007 Edi- torial Team, Green Circuits' Joe O'Neil breaks down the current merger and acquisition (M&A) market in the electronics manufactur- ing space and the industry trends that affect it. Joe also gives his advice on best practices for the negotiating table from both the buyer's or seller's perspective. Nolan Johnson: Dan, since you are particularly qualified to talk about M&A issues, I'm excited to have you lead this. Dan Feinberg: It has been a while, but I was involved in a number of M&As as well as dives- titures back in the '80s and '90s both as the acquiree and acquirer. It was an exciting time. Johnson: What is your perspective on the global dynamics for M&A, especially since you have been involved in one or two transactions recently? Merger and Acquisition Trends Joe O'Neil: It's probably not going to be set up as a good time for both the buying and selling side, but rather more one or the other. Rarely is it nicely aligned, but it does seem like a good time from the selling side. Multiples are up, and interest rates are non-existent, so it seems to be shaping up as a pretty good time to look at options. But it's more about whether it's the right time for a particular business, given the business cycle, especially with the election next year and a lot of other variables, which may indicate some longer-term uncertainty. It has been a nice, long run, but how long will it continue? Uncertainties can play into peo- ple's assessment of whether it's a good time or not and impact the buying side. There are some things driving it in terms of new entrants in the market, new private equity firms, and new platform companies that are trying to do a roll-up strategy or something to take a bunch of Tier 4 organizations and end up in a Tier 2 space. There are a lot of moving parts. Feinberg: I agree with you. Usually, it's either the best time to buy or the best time to sell. Joe O'Neil

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