The plastic industry is the third largest industry in the market. The plastic industry provides around one million jobs related to manufacturing. Plastics are manufactured from different types of processing techniques namely extrusion, injection molding, blow molding and roto molding.
There are multiple reasons for increasing the growth of plastic materials among the consumers. One such driver is that the products manufactured out of plastic can replace metal and ferrous alloys across various industries. Other driving factors for the growth of plastic industry include growing population, rapid industrialization, and increase in demand for automobiles.
Over the past few years, significant merger and acquisition (M&A) activities have occurred throughout the year in the industry. The one major reason for growth in M&A activities is to add more premier portfolios into the existing ones, thereby broadening and diversifying the customer base and significantly increasing cash flow. Further driving forces can be, as part of diversification into new market from existing ones like medical device, diagnostic, pharmaceutical, and CPG market segments i.e. Celanese Corporation acquired Omni Plastics and its subsidiaries in order to increase the market base and to strengthen the global assets by adding compounding capacity.
In the process of M&A, integration is very important; each party wants to complete the process quickly to minimize disruption in the business. Major Key challenges also involve comparing benefits, compensation and union contracts and deciding on HR policies and practices.
If you are looking to exit your business, Keystone Business Advisors will guide you through the entire merger and acquisition process, starting from cost benefit analysis to risk evaluation. Our business brokers will provide a business valuation of the company, develop a comprehensive marketing package, identify best-fit buyers, and manage the sales process and negotiations purchase and sale contracts. Once the business is under letter of intent, our advisors will create a plan to move the process through due diligence to closing in manner to ensure that sensitive information is protected, and the best price and terms are achieved.