Lighting manufacturing comprises a range of products like electric light bulbs, tubes, parts and components. The US lighting manufacturing industry is going through a high competition from Chinese manufacturers.
The increasing substitution of LEDs for traditional lighting systems has dramatically reduced demand for industry products, as a factor the revenue is decreasing in the last few years.
This industry has witnessed multiple merger and acquisitions (M&A) in the recent past. Mostly such M&A activities happen to focus on providing customized solutions for architects, designers and specifiers, paired with their excellence in customer service. Here are a few such M&A in the industry among the SMEs:
- As a part of technology acquisition, many companies likes to add an exterior lighting controls system to its established portfolio of interior controls and automated shading solutions. Such acquisition happened as Lutron acquired Twisthink and its partner company, TwistHDM
- As a part of acquisition, both firms will continue to offer expert lighting design services to an international client base, collaborate on projects, and provide clients with a full range of lighting and day lighting design services i.e. HLB Lighting Design had acquired Illumination Arts
- To provide designers with a full array of lighting solutions from architectural to custom options and to expand the customer base in North America. One deal among those acquisitions is Flos had acquired Lukas Lighting
Some major challenges that can be faced while M&A transactions are the lack of integrity on the part of the target’s management, disagreements over management control, unreliability of financial statements, regulatory compliance and ambiguity with respect to tax payments that create significant contingent liabilities.
We will do our research and provide a clear strategy to overcome the many challenges which could exist in the sale process. Our M&A Advisors will recast the last three years of financial statements for the business to minimize surprises during due diligence and avoid re-trading later on in the process. Keystone Business Advisors offers a holistic approach by working with your accounting and legal advisors to help reduce taxes and limit risk as a result of the sale. Keystone currently represents two California based lighting manufacturers and has developed deep knowledge of the industry as a result. Connect with us to sell or buy your business for the best price possible in the industry.