Springs are used in everything imaginable. Anything with a battery has a metal spring or two to provide the electrical connections. Cars and trucks, trains and planes all use springs to make the ride on the ground more comfortable. Springs help to close doors and cabinets. Springs are used in cardiac pacemakers. Hundreds of companies, mostly small, family-owned businesses around the world manufacture these parts. One I know was started in the 1860s making springs leafs for wagons and is now run by the 7th generation of the family. Many of these companies are now in discussion to sell the business to individual buyers or to private equity investors. What’s the value of a company chunking out springs?
Having done a study on the future of springs for their trade association, I was recently interviewed for their quarterly magazine. We looked at the 7 forces driving business, the 8 drivers of value, and my own experience with my son looking to buy a business. Below is the full text of the article appearing in Volume 57 Number 4 Fall 2018 edition. If you prefer, you can go to pages 34-37 for free to read it and see the inserts.
We recorded the video interview which is available here:
I also created a 70-second excerpt of some highlights that can be viewed here.
Or the audio can be listened to on iTunes Business Accelerants Memo podcast
or on SoundCloud