Issue link: https://iconnect007.uberflip.com/i/759357
50 The PCB Magazine • December 2016 Kastner: It can be beneficial to both sellers and buyers. For the seller, the owner can retire, or perhaps focus on a role with the merged com- pany that they enjoy the most, such as sales or operations. For the buyer, it can help fill a shop with more work, and it can bring new cus- tomers, products, people, reps, equipment, and technologies. Beaulieu: Are there any major trends that you are seeing out there? Kastner: Two major trends: Customers are in- sisting that shops invest in technology, such as direct imaging and laser drills. Also, foreign buyers would like a physical presence in the U.S. Beaulieu: And what do you think this means? Kastner: It will be increasingly difficult for smaller shops to keep up with larger shops that are investing in the newest technology. If they have survived this long, they probably have their costs down and have an interesting niche in the market. Regarding foreign buyers, we'll probably see more foreign-owned shops in the U.S. down the road. This may be part of their global strategy, and it allows them to make pro- totypes and quick turns in the U.S. and volume production overseas. Beaulieu: What kind of deals have you been in- volved in since we last spoke? Kastner: Since we last talked I closed the sale of Tech Circuits to APCT. Beaulieu: Without breaking any confidentialities, what do you have on your plate now? Kastner: I am representing a $4.5 million PCB shop that is focused on mil-aero prototypes and quick turns, and I am representing a few buyers in the EMS space (one in PCBA, one in wire- harness/assemblies). Beaulieu: I know that you have made some ad- ditions to your own firm since we last talked. Can you tell us about those? Kastner: We added three people: two profes- sionals and one assistant/researcher in the U.S. That brings us up to five total, with four in the Chicago area and one in Tokyo. We are still fo- cused on the electronics and tech fields, both sell-side and buy-side advisory services. We also offer grooming services, in which we help sell- ers get ready to go to market. Beaulieu: Sounds like you are prepping for the fu- ture. What do you think that is going to look like? Kastner: We are busy already, but we think that baby boomer owners will be retiring in droves over the next few years. Also, there is a tremen- dous amount of strategic capital and private eq- uity capital in the world that is seeking compa- nies to buy, in a wide variety of sectors. I believe that the number of PCB and EMS shops will continue to drop, but the shops that remain and invest in equipment and technology will be stronger than ever. Beaulieu: Any final comments? Kastner: I am always glad to talk with owners or their advisors on how the M&A process works, potential buyers or sellers, valuations/terms, and how to prepare a business for sale. Beaulieu: Tom, it's always a pleasure talking with you. Thanks for taking the time today. Kastner: My pleasure. PCB Dan Beaulieu's "It's Only Common Sense" column can be read every Monday in the I-Connect007 Daily Newsletter. To read past columns or to contact Beaulieu, click here. Tom Kastner is the president of GP Ventures, an M&A advisory firm focused on services for elec- tronics and technology companies. To contact Kastner, or read past columns, click here. CATCHING UP WITH M&A EXPERT TOM KASTNER