Ross Hoek built Impres Engineering into a $2.5 million company and got a fair acquisition offer. Little did he know, it was too good to be true.
Impres Engineering is a Computer Numerical Control (CNC) machining company specializing in custom machined aluminum products in Grand Rapids, Michigan. If you want a product prototype made of aluminum to pitch investors or would-be customers, Ross Hoek is your guy.
After 21 years running his business, Hoek decided it was time to sell his 16-employee company with over $2 million in annual sales. He got several offers and settled on one that would pay him $3 million – $2.25 million up front with the balance paid over time.
It all sounded good in theory, so Hoek agreed to the terms and to an employment contract with the new owners. However, within a year, Hoek had stopped receiving the agreed upon payments and had been fired from the company he started.
In this episode, you’ll learn:
- The special considerations used when establishing the value of a manufacturing company
- How your equipment can be used to ensure an acquirer pays you what they owe
- The one thing Hoek wished he’d done when preparing a share purchase agreement
- How to protect yourself if your deal goes south
One of the reasons Hoek’s business failed under new ownership was how dependent his company was on Hoek himself. Ensuring your business is not dependent on you is one of the secrets to a clean exit. Find out how dependent your business is on you by getting your Value Builder Score now.
About Ross Hoek
Ross Hoek is a life-long resident of Holland, Michigan. He founded Impres Engineering in 1995, while raising two daughters with his wife, Cathy. He is currently rebuilding his company but still finds opportunities to scuba dive, race in the Lucas Oil Midwest Off Road Series, and spend time with his two grandsons.
You can connect with Hoek on LinkedIn.
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