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Forming technology, machining, components, special machinery: industry is the core of the German Mittelstand and the field in which we have advised on the most transactions. From Rasche Umformtechnik via SORST, The Expanded Metal Company and KÖNIG + CO. to THUN Automotive, we know the buyers, the valuation logic and the pitfalls, even when the timing is not ideal.
Succession wave, transformation and buyers from around the world
In no other sector are as many owners facing succession as in mechanical engineering and metal processing. At the same time, energy costs, the restructuring of the automotive industry and new competitors from Asia are changing business models. This unsettles many owners, but it also generates strong demand: strategic buyers from the USA, Switzerland, Scandinavia and Europe secure technology and market access through German Mittelstand companies, industrial holdings build industrial groups, and special situations specialists take over companies in transition.
Our transactions show the range: KÖNIG + CO. went to a US group, MBE to the Swiss SFS Group, Rasche to the industrial holding Mutares, THUN Automotive to a transformation investor. For owners this means that there is a suitable type of buyer for almost every starting position, but only a structured, internationally oriented process will find it. More than half of our mandates have a cross-border dimension.
Forming technology, machining and suppliers
Forged, stamped and formed parts, precision parts, tooling. Buyers are industrial groups and industrial holdings that bundle manufacturing depth and customer access, as well as specialists for transformation cases. What is valued is customer diversification, share of series production and technology, not the end customer's sector alone.
Components, systems and building elements
Expanded metal, fastening technology, tank heads and special pressed parts. International strategists dominate here, seeking to close a product gap or open up the German market, such as MEISER, SFS or HBH. Market leadership in a niche counts for more than size.
Machinery, plant and special machinery engineering
Series machines, plant, robotics and automation. Buyers are corporate groups, industrial holdings such as INDUS or Possehl and family offices looking for independently managed units. Service and spare parts business, order backlog and development capability drive the price.
What buyers pay for in this sector
Industrial companies are valued on sustainable EBIT or EBITDA, but the multiple depends heavily on structure and risk. Three points are decisive, and all three deserve attention before the sale.
Customer structure and end markets
Concentration on a few customers or a single end market such as automotive depresses the multiple; diversification into mechanical engineering, energy, aerospace or medical technology raises it. Framework agreements and series lifetimes give buyers planning certainty.
Technology and manufacturing depth
In-house tooling, certifications, patents and process know-how are the reason strategic buyers from abroad acquire German Mittelstand companies. Those who can demonstrate their unique position negotiate with several bidders rather than one.
Machinery and investment requirements
Age and utilisation of the equipment, energy efficiency and pent-up investment needs feed directly into the purchase price. So do service and spare parts revenues, which smooth earnings across the cycle. An honest stocktake before the process prevents discounts in due diligence.
KÖNIG + CO. → HBH Holdings, Inc. (USA)
The family business KÖNIG + CO. from Netphen has been manufacturing tank heads, cones and special pressed parts for customers worldwide for almost 100 years. As part of the succession, the shareholders sold their shares to HBH Holdings of Cincinnati, for the buyer a strategic step towards becoming one of the world's leading manufacturers of tank heads. KÖNIG + CO. continues under its existing name at the Netphen and Haiger sites, all jobs are secured, and the König family remains connected to the company.
Read the full announcement →Eight transactions, one common thread
Whether forming technology, expanded metal, fastening technology or special machinery: in most cases the right buyer was not based in the company's own district. A process that approaches strategic buyers abroad, industrial holdings and specialist investors in parallel has made the difference.
KÖNIG + CO. → HBH Holdings
Tank heads and pressed parts
THUN Automotive → RCP Group
Stamped and formed parts, 400 employees, DE/HU
Expanded Metal Co. → MEISER
Expanded metal, Hartlepool
SORST Streckmetall → MEISER
Market leader in expanded metal mesh, Hanover
TG hyLIFT / hyCLEANER
Cleaning robots for solar and facades
Rasche Umformtechnik → Mutares
Forged parts, 180 employees, Plettenberg
MBE → SFS Group
Fastening technology for facades, Menden
SCHMETZ
Industrial needles
Sector knowledge first hand
Three members of our Industry Advisory Board have run, bought or sold industrial companies. They support us in assessing technology and business models and in conversations with buyers on an equal footing.
Dr. Michael Seibold
Managing Director Hauff-Technik GmbH (INDUS Holding AG) · Advisory Board Schöffel
Alexander Mesdaghi
Former shareholder and Managing Director of industrial needle manufacturer Schmetz
Jürgen Heidel
Former Managing Director SWA Technologies (today part of the Brückner Group)
Questions on selling an industrial company
How is a supplier or machinery manufacturer valued?
The basis is sustainable EBIT or EBITDA, adjusted for one-off effects, multiplied by a factor that reflects size, customer structure, technology and investment requirements. Listed peer companies provide the framework; a discount applies to Mittelstand companies. Buyers also deduct net debt, pensions and investment backlog. Our fixed-price company valuation provides a robust initial assessment.
Can an automotive supplier in transformation be sold at all?
Yes, if the process targets the right buyers. Alongside strategic buyers looking for capacity and customers, there are private equity investors specialising in transformation and special situations. We advised THUN Automotive, with 400 employees, on a sale to such an investor in a competitive process within four months. Transparency about the starting position and speed are decisive.
Who buys industrial companies from the Mittelstand?
Strategic buyers from Germany and abroad seeking technology, a niche or market access; industrial holdings such as INDUS, Possehl or Mutares, which run companies long term or as a platform; family offices; and, for companies in transition, special situations specialists. More than half of our industrial transactions had a buyer from abroad.
What role do machinery and investment backlog play?
A major one. Buyers assess the condition of the equipment, utilisation and the investment requirements of the coming years, and deduct pent-up needs from the purchase price. Those who carry out an honest stocktake before the sale and present necessary investments with sound reasoning prevent blanket discounts in due diligence.
What becomes of the site and the workforce?
Strategic buyers generally buy because of the team, the site and the customer relationships, not in spite of them. Commitments on site, employment and continuation of the name can be anchored in the purchase agreement, as was done with KÖNIG + CO. We make these points a criterion in buyer selection early on, not a bargaining chip at the end.
Do you run an industrial company and are thinking about the future?
The first conversation is non-binding and, of course, confidential.