Issue link: https://iconnect007.uberflip.com/i/1172746
46 SMT007 MAGAZINE I OCTOBER 2019 board targeting from a strate- gic standpoint? I also suggest that you to try to meet with the other company's board to learn their goals and why you would want to buy them. What do they have to sell to you? We were once in the mid- dle of a significant acquisition where either we were going to acquire them, or they were going to acquire us, and the board of directors didn't seem to care what happened. Both companies were at a point where they were at a critical mass and needed to either get much bigger or sell. Those discussions went on for a while, but it was interesting to hear the reasonings behind this from the boards of directors; they seemed to have little to do with Company X getting our dry film or us getting their electroless copper. One of my recommendations for anybody who is looking to acquire or be acquired is to try to have a meeting with the board of direc- tors, not just with the senior executive who's leading the charge here because it will have to come out. Find out the directive and mission and whether you do or don't have what they want, but you may have additional benefits. If I was going to be involved in a major acquisi- tion today, I would want to meet with the other company's board. O'Neil: I agree. Identify the drivers and do as much reverse diligence as you possibly can to make sure that there's true alignment and it's not just checking all of the financial boxes. Feinberg: You're looking for a partner in life. Think of it like getting married; you'd want to know if they liked you for your looks or your new car. Is there a long-term goal? If so, what is it? Joe, you have made some acquisitions, and we understand that you may not be able or want to talk about them. But have you con- sidered selling? Are you in an acquisition or growth mode? O'Neil: We're in growth mode, but we're defi- nitely looking at acquisitions. We looked at— and went down the road with—a couple, but things don't always make it to the finish line. The group that's behind us has a full-time per- son who's doing nothing but reviewing oppor- tunities. It's amazing how much is out there and how much is not truly differentiated. Whether you're thinking of selling or operating for the next 100 years, figure out what differen- tiates you and sets you apart, whether you're one of 200 sub-$10-million PCB fabricators or one of 2,000 EMS companies that are in the sub-$20-million range. There are a lot of companies out there that position themselves as "high-mix, low-vol- ume production, quick-turn, high-reliability, and medical and consumer"; they say, "We're everything under the sun for everybody." But when you look under the hood, they aren't all things to all people because no company can be. So, figure out what makes you different in the market and why your customers work with you. If you ask them, they'll tell you. And if you have top-10 customers, and you talk to all of them, you're most likely going to find a common link. That common link is your secret sauce and will give you the answers. We get excited when a company is available or becoming available, they know why they want to exit, and they know what their secret sauce is; that's when things move quickly.