Sold To

Mass Communications

Beacon Equity is pleased to have represented the Stockholder & Board members of Product Packing Corp in marketing and sale of the company.

About Product Packing Corp:

Product Packaging is a leader manufacturing subcontract packaging services primarily paper related products with some plastic and metal parts.  The major source of revenues is that they cut paper rolls into smaller ones.  The company expanded their product line to incorporate paper, greeting cards, tissue gift-wrap, plastic forks, spoons, food containers, springs and locks.

For more information on this transaction or other similar business sales contact:

David Humphrey

Beacon Equity Advisors

781.551.8000

Beacon Sold Product Packing Corp. a leader in manufacturing subcontract packaging services primarily paper related products with some plastic and metal parts.  Sold prior to 2010. Beacon is proud to be the Business Broker serving Worcester and surrounding towns of auburn, Millbury, Grafton, Shrewsbury, Northborough, West Boylston, Holden, Paxton, Leicester and all of Worcester County.  If you are thinking of selling your company please call for a commitment free consultation.

Let Beacon sell your company for you.

When: December 15, 2011

Where: Beacon’s Office

Time: 8am – 10am

Call Meredith to register at 781.551.8000 x 110

Click for video

When: December 1, 2011

Where: Beacon’s Office

Time: 8am – 10am

Call Meredith to register at 781.551.8000 x 110

Click for video

————-

————

—————–

https://docs.google.com/spreadsheet/pub?hl=en_US&hl=en_US&key=0Agmmm2qtrvD5dEFfWG1VOG9aRjRCdFBZQjlkZUl6UFE&output=html

It is also the question asked after the sale of a business.  Better yet, ask it before the sale.

During Beacon’s initial meeting with a prospective seller, we always ask, “What are you planning to do after you sell the company?”

We sometimes get fascinating answers about long deferred adventures, crossing off items on the Bucket List or touching answers about spending time with family.  Most of the time we get an unsure look and “it depends on whether the buyer wants me to stick around or not”.

After years of being an entrepreneur, suddenly owners are willing to do what someone else wants?  To quote my 11 year old, “Really?”

Be proactive about your post-sale role in the company and consider:

• Whether you want to remain in the company in a specific aspect outside of day-to-day management. The sale can be an opportunity to remain with the business in a role you enjoy such as sales, product development or strategic planning.

• How long you would be willing to work, how many hours per week/month and at what compensation.

• If you want to continue to work in a different aspect of your industry, consider what carve outs you may want in the non-compete agreement, which will allow you to undertake these other activities, and work them into the deal upfront.

The answer to “what’s next?” can change the sale of the business in many ways.  In most cases, having the owner remain with the business is attractive to buyers.  Your presence can enhance the value of the business while you continue to work at something you love without all the ownership responsibilities, on a schedule you negotiate in advance.

Knowing the answer to what comes next for an owner after the sale can provide piece of mind for a major life transition and add to the value of the business.

First, does this look like a basement to you?

Second, it is in suburban New Jersey where I would guess no one has any idea who Filene was and how he changed the way people shop for clothes.

Sadly, Filene’s Basement will be liquidating in January 2012 putting more than 1500 people out of work.  The company spokesperson said, “fierce competition and the worst economic downturn in our lifetimes” were the reasons for the choice to liquidate.

Granted those things put the final nail in the coffin, but the patient had been on life support for at least 10 years.  Why did the company that coined the term “bargain basement” with a destination location in Downtown Boston die during a time when great discount retailers are highly sought after by consumers?

My bargain hunting wife tells me that once they went away from the automatic markdown system* that “made it a challenge to get a great bargain” they became just another discount store that competed with hundreds of others for locations and merchandise.

When you said Filene’s Basement 25 years ago, everyone in New England (and a lot of people all over the country) knew what it meant.  They were #1 in the minds of savvy shoppers looking for a bargain.  They began to expand by adding locations in the suburbs, then outside of New England but without the “secret sauce” of the automatic markdown.  They abandoned the thing that made them unique.  When they became just another discount store, bigger chains with more buying power lured away Filene’s Basement customers and the march toward extinction was on.  They tried many different things to stay relevant but never regained #1.

We recently sold a small manufacturer South of Boston.  It sold in six months to two veteran investors with impressive backgrounds in managing emerging companies.  Why did they buy this small company?  Because it was #1.

The company was the #1 maker of 200cc-2500cc specialty cylinders for containing dangerous materials.  In a world where customers were more focused on quality and potential liability than price, the company consistently delivered a product that could be trusted while working with the customer to continuously improve design and efficiency.

Rather than increase the size of the company by diversifying into other products or making promises he couldn’t deliver, the owner focused on producing the best cylinder possible. He did so efficiently, profitably and by being a leader in his space, rather than just another machine shop.

Buyers were attracted to the idea the company could identify where it was number one, the niche they fulfilled, the fact that quality of product was more important to the customer than price, and the depth of relationship the company had with its clients.

If you would like to discuss how positioning your company as #1 effects value as part of getting ready for a sale, please call Beacon Equity Advisors (781) 551-8000 to learn more about this and 33 other ways to increase the value of your company.

* The concept was that every week the price of an item was automatically reduced so it pitted one shopper against another to see who decided that the price was finally low enough to warrant the purchase.  People even hid items in other parts of the store so no one else could find them.

Rotate Sales people so customers learn to talk to many people

• Create an environment where the customer enjoys conducting business with the company, not just one person at the company.

• Expenses not necessary to operate the business are discretionary.  Be able to support these items as an add-back.

Sold to

Equity Management Partners LLC.,

Beacon Equity Advisors is pleased to have been the advisors initiating and negotiating the sale Precision Fabricators LTD.,

About Precision Fabricators LTD.,:

Precision Fabricators LTD., (PFL) is a precision metal fabricator that uses production and process control systems to cut, weld, polish, machine stainless steel and other alloys in the production of cylinders for a variety of industries including electronics, military, aircraft and medical devices.

PFL makes a well-engineered product that is in demand from makers of cutting edge technology and they offer the product in varying lot sizes that are delivered reliably for the customers.

The US Department of Transportation requires each product follow a strict production regimen before it can be used to transport dangerous materials.  Precision Fabricators passes periodic inspections to maintain two DOT qualifications.

Since 1985, the company has been an innovator in the design, prototyping and manufacturing specialty cylinders and hardware.  Customers appreciate their custom design approach combined with the ability to solve engineering challenges to produce a working final product.

For more information on this transaction or other similar business sales contact:

Jeffrey Muir

Beacon Equity Advisors

781.551.8000

Beacon Sold Precision Fabricators LTD., a leader in the designing, prototyping and manufacturing of specialty cylinders and hardware.  Beacon is proud to be the Business Broker serving Stoughton Massachusetts.

If you are thinking of selling your company please call for a commitment free consultation.

Let Beacon sell your company for you.

Thank you to the Seller’s advisors who played a key role in getting this deal closed.

• Joyce M. Christensen, CPA from Sharkansky LLP
• Attorney William C. Ely from Robinson & Cole LLP
• Pamela Oliver Stephenson from Horizon Business Valuations LLC