Industries Served
Aberdeen Advisors
Aberdeen Advisors is a team of former executives who have owned or operated a business that has gone through the sales transaction process. We have personal experience navigating the complexities involved in the sale of a company. Whether a private equity firm, family office, or strategic, our team is committed to identifying the right buyer for each of our clients. With 95% of our clients receiving multiple competitive offers, Aberdeen Advisors has a reputation of ensuring our clients receive maximum value for their businesses. As a boutique mergers and acquisitions firm, Aberdeen Advisors provides sophisticated investment banking services to clients in the lower middle market.
Our Process
From onboarding to closing, Aberdeen follows a proven six step plan to ensure your company is properly prepared for a transaction, is perfectly positioned to attract acquisitive buyers, and is appropriately equipped with a competent deal team to manage the path to close.
HVAC / Plumbing / Electrical
Private equity firms continue to consolidate the highly fragmented HVAC/Plumbing/Electrical space. Aberdeen Advisors has successfully sold a multitude of residential and commercial hvac, plumbing, and electrical companies to private equity and strategics seeking market share across the industries. We know the buyers in the space and more importantly, those buyers know Aberdeen and look to us to provide HVAC, plumbing, and electrical acquisition opportunities.
Manufacturing
While some U.S. manufacturing companies fared extremely well during the pandemic, many faced increased challenges due to higher labor costs and supply chain issues. When selling a manufacturing company in today’s environment, it is important to have successfully weathered the pandemic and be able to present a company on an upward trajectory with assurance. A buyer will want to understand the performance of your company pre-pandemic and during the pandemic, along with any steps you have taken to insulate the company, to the extent possible, from such an event on a go forward basis. Additionally, regardless of whether you plan on staying with the business for a limited time period post close, a buyer must be confident that your management team is capable of making the day-to-day decisions as they relate to customers, vendors, employees, capital expenditures, risk management, and financial responsibility. Finally, buyers looking to acquire manufacturing companies require assurance that the company has a clear growth plan and the team in place to execute the plan. With Aberdeen’s trusted relationships with those firms focused on acquiring manufacturing companies, we have successfully guided dozens of manufacturing companies through the transaction process.
Distribution
Distribution companies contribute approximately $ 3 trillion to the U.S. private sector GDP, representing more than 17 ½ percent of the GDP. When analyzing an acquisition target in the distribution sector, buyers will explore the financial performance of the company, specifically the gross margins, the assignability of supplier and customer agreements, and the diversity of the supplier and customer base to identify and mitigate any concentration risks. In addition, buyers will study the company’s revenue channels as well as its end markets to better understand the sustainability of the existing business model and to identify opportunities for growth. Aberdeen Advisors has a successful track record selling distribution companies across many industries including but not limited to healthcare, leisure and hospitality, home services, and professional services.
Healthcare
After consecutive years of record-breaking healthcare mergers and acquisitions, 2023 saw a slight slowdown largely due to the heightened regulatory environment. All indicators are forecasting a robust recovery in the second half of 2023, notably in the lower middle market. While high value is placed on healthcare companies, healthcare transactions can be particularly complex. Having successfully advised many healthcare companies, Aberdeen understands the challenges presented with licensing transfers, assignability of payor contracts, payor concentration, reimbursement risks, and cash based financial reporting. Our vast healthcare experience ensures our healthcare clients are equally matched when negotiating and selling to seasoned, sophisticated healthcare acquirers.
Physician Practices/Healthcare Providers
Aberdeen Advisors possesses a proven track record representing medical practices across many healthcare disciplines. From dentists and oral surgeons to reproductive endocrinologists, dermatologists, general practitioners, and eye surgeons, Aberdeen has partnered with physicians across most every specialty. We have credibility with healthcare buyers seeking platform and add-on acquisitions allowing us to match our healthcare provider clients with the right buyer based on culture, practice size, specialty, geography, and physician transaction goals post transaction.
Durable Medical Equipment (DME)
The DME market is expected to continue to grow through 2028 based on the large demand created by America’s growing senior population. With experience on both sides of the table, buyside and sell-side, Aberdeen has extensive knowledge of the intricacies created from Medicaid versus Medicare as a primary payor, assignability of third party payor contracts, reimbursement risks, and varying state licensing and regulatory requirements contingent upon the type of durable medical equipment being sold. Most DME companies offer a simple business model and depending on the payor composition can yield very high profit margins. Based on our experience, we have a clear understanding of the value DME brings to patients AND to third party payors and are able to position DME companies as opportunistic investments for the right buyer.
Technology
Although tech deals saw a decrease in the first half of 2023, mergers and acquisitions in technology are gaining momentum and expected to rebound healthily as financial sponsors seek to add tech-based companies to their portfolios. Strategic buyers are exercising patience as they await positive change in the macroenvironment. While some technology deals trade on a multiple of revenue, others trade on a multiple of EBITDA. After analyzing a tech-based company’s revenue streams, end markets, and ultimately, it’s EBITDA, Aberdeen can provide guidance as to the range of value the technology-based company will likely generate.
SaaS
SaaS, or software as a service, businesses are valuable and desirable assets. Having accurate data, organized financial information, and a solid customer base can contribute to creating a very lucrative exit strategy. In the first quarter of 2023, SaaS deals comprised a record 66% of total software mergers and acquisitions proving the appetite for Saas companies remains strong with no signs of wavering. Multiples of SaaS transactions continue to reflect total enterprise value of 5.2 times revenue, on average, while private equity continues to drive SaaS mergers and acquisitions, accounting for 61% of all SaaS transactions in the first half of 2023.
Engineering
With less than ten (10) large-scale engineering firms generating 15% of the sector’s overall revenues, the professional engineering sector remains highly fragmented with most companies generating approximately $ 5M in annual revenues. Over the past few years, the sector has experienced significant consolidation by regional and national players. Having relationships with those firms acquiring owner/operator led firms, Aberdeen has proven success matching firms based on cultural alignment, management team strength, and owner’s transaction and value expectations.