The Number Isn’t the Problem. The Credibility of the Number Is.
I have been around this industry for a long time. I built a wire harness company, ran it for years, and eventually sold it. Now I guide other founders on their exits. Over the last 5 years, I have sat across the table from many buyers, lenders, and Quality of Earnings teams. And I can tell you with confidence: the single most common reason value leaks out of a wire harness deal has nothing to do with the EBITDA number itself.
Forecast That Won the Boardroom And Nearly Killed the Deal
Charlie had done what every founder preparing for a sale is supposed to do. He sat down with his leadership team months before going to market, walked through the numbers, and built a thoughtful case for where Continuity Inc. was headed. Revenue growth. Margin improvement. New customer wins. Better utilization across the floor. The plan was detailed and logical, and when he presented it to his advisors and his bank, it landed well.
Busy Isn’t Sellable: What buyers look for when they walk through a cable assembly shop.
I’ve spent more than 35 years in this industry, most of it on the operating side, building and eventually selling a wire harness business. So, when I sit down with a founder today, and they tell me how flat-out busy their shop is, I get it. I lived it. The 6 a.m. starts, the rush jobs, the late-afternoon scramble to ship a customer who moved their PO date. Busy feels like proof. Proof that the business is working. Proof that you’ve built something.
Due Diligence: What Buyers Look For and Why Preparation Defines the Outcome
When a buyer expresses interest in acquiring your wire harness or cable assembly company, excitement and uncertainty often arrive hand in hand. For most founders, it’s the culmination of decades of work and one of the most significant transitions in their lives.
The Part of the Exit Nobody Warned Me About
When I sold my wire harness company, the closing day went exactly as planned.
I signed the papers at 2:00 PM. The wire hit my account by 4:00 PM. Years of risk and hard work had turned into generational wealth, truly life-changing money.
The LOI is not the finish line.
I could hear the relief in his voice, the same relief I’ve heard from numerous founders over the years. After 23 years of building his wire harness company, he finally had validation. A buyer who saw the value. A headline number that felt like the finish line.
From Founder to Advisor: How to Capture the True Value of Your Wire Harness Business
remember standing on the manufacturing floor of my wire harness company during the COVID pandemic, taking it all in: the hum of machines, the focus of our team, and the weight of uncertainty in the air. I found myse
Exit Smarter with HarnessPoint
Blue Valley Capital is proud to introduce HarnessPoint, a purpose-built exit readiness program designed exclusively for wire harness and cable assembly manufacturers.
Your Exit Checklist: 25 Owner Tips
Happy New Year from everyone at Blue Valley Capital! Last year was remarkable as we guided numerous business owners through successful exits. If you’re contemplating selling your business in 2025 or beyond, beginning preparations can significantly increase its value and ensure a smooth transaction. In this article,
Owner Dependency = Lower Valuation
Having recently visited wire harness companies in the Midwest and Mid-Atlantic regions, I’ve had the chance to witness well-managed facilities and engage in discussions about industry trends, particularly in mergers and acquisitions (M&A). One issue that consistently surfaced was owner dependency, a factor that can significantly influence the valuation and appeal of a business to potential buyers. Drawing from my personal experience, I can attest that addressing and mitigating this issue can pave the way for a smoother, more profitable sale, thereby increasing the value and appeal of your business.