Company Facts:

Industry: EMS Contract Manufacturing

Year Founded : 1985

Location(s): USA & Mexico

Employees: 495+

Turnover (USD $) : $64M (FY'16)

EBITDA (USD $): $2.8M (FY'16)



Private Equity owned contract Midwest USA based EMS manufacturing company ("Portco") was formed by merging small EMS and wire/cable (w/c) suppliers. Portco grew double digits until late 2010 serving Industrial, Aerospace/Defense, Telecom, Consumer and Medical sectors. The Portco consolidated into two US locations and one cross-border facility in Northern Mexico. Management launched several patented technologies to meet growing demand for custom system on module (SOM) solutions. With over 30+ Fortune 500 customers globally, the Portco faced growing pains and PE owners failed to seek new ways to meet customer demand. Sales dropped by early 2015 by 50% from it highs in 2010. Management turnover was over 70%. By late 2015, PE owner sought to exit the Portco for an 0.5x revenue as profits declined.


By late 2016, PE owner changed management in effort to stage the Portco for sale. Marabek was invited to assess and review exit strategy by the management and PE owner. Analysis showed margins declined by 60% over the past 5 years due to customer contracts that were weighed heavily with penalties and cost reduction mandates. Marabek placed emphasis in growing contract assembly work in Mexico to improve margins, renegotiate contracts, as well as offer new services and technologies to meet growing IoT market.


PE owner was provided an advisory 3-year strategic plan for the Portco to be included as part of the Confidential Information Memorandum (CIM) and sales package for prospective buyers. Strategic plan included targeted sales and margin forecasts as well as metric driven performance goals.