Issue link: https://iconnect007.uberflip.com/i/1456062
62 SMT007 MAGAZINE I MARCH 2022 ufacturing in the U.S. due to reshoring and government policies. is is a lot of activ- ity, especially considering the COVID pandemic and travel restrictions. According to our records, i n No r t h A m e r i c a t h e r e were 13 PCB deals in 2021 and nine in 2020. For the EMS sector, there were 24 deals in both 2021 and 2020. I think that the number of deals in the PCB sector will be around the same in 2022; there would be more, but there are fewer and fewer shops to buy. In the EMS sector, I expect the number of deals to be above 30. Beaulieu: Is there interest in other countries buying in North America? Asian or European companies? Kastner: Yes, we are seeing a lot of interest from European companies. Not so much from Asian companies yet, mostly due to COVID. Beaulieu: How does the current legislation in Congress, which seems to be targeting semi- conductor manufacturing, affect the PCB fab and EMS providers? How might governmental investment into our market change the M&A landscape? Kastner: I've heard from a lot of buyers that they are bullish on the current direction of U.S. manufacturing. My feeling is that if even a small portion of the market comes back to the U.S., that would be a big li to U.S. manufac- turers. As long as the pending legislation and policy changes encourage investment, it would be a positive for both U.S. manufacturers and M&A activity. Beaulieu: What kind of deals are happening? Is this a buyer's or a seller's market? Kastner: I think it is a seller's market for "larger " deals (above $20 million in reve- nue or so) especially if the seller's company is profit- able and does not have many issues. It is more of an even market for smaller deals or for under-performing com- panies. Beaulieu: Who is doing this buying? Are private equity g r o u p s i n v o l v e d ? A r e money people buying into our industry? Kastner: Private equity groups were involved in most deals in 2021 in both the PCB and EMS industries. is is a strong vote of confidence in the industry, and I expect this to continue for some time. Beaulieu: What advice would you give to some- one who is trying to sell their company? Kastner: Preparation and education are the big keys for getting a good deal and having it go smoothly. Owners should work with their advisory team, such as their attorney, CPA/ tax advisor, wealth advisor, and M&A profes- sional. Beaulieu: Same question but for buyers. What advice would you give someone looking to buy a company? Kastner: Sellers are inundated with calls and e-mails from potential buyers, so it is impor- tant to try to stand out from others. Beaulieu: I hear a lot about rollups or consoli- dations. Please explain what those are and how they work? Kastner: at generally refers to the situation in which the buyer moves the seller's business Tom Kastner