Equity Firm Eyeing South Carolina Manufacturing Companies

Family-owned precision manufacturing companies in South Carolina now have a viable option for maintaining and improving their life’s work should they decide to sell.

Premo Ventures, an equity firm based in Greenville, SC, will target baby boomers with manufacturing businesses generating an annual revenue of $500,000 to $5 million, while providing job security for the current staff of purchased companies and a continued dedication to increase associate morale and production.

After decades of hard work, many business owners are ready to slow down but want to ensure their companies will transition smoothly, said Jason Premo, CEO, Premo Ventures.

“Planning an exit strategy for your business is just as important as how you start it, and we listen to the business owner’s needs to ensure a win-win scenario,” he said. “Our track record of value-added growth has earned us long-standing relationships with both the management teams and family owners, as well as a multitude of customers, suppliers, industrial peers, and affiliated investors.”

The South Carolina equity firm is designed to acquire small companies, invest heavily in the people and process, and modernize them into advanced manufacturers with strong top-tier customer relationships.

“Our vision is to find companies great at creating things and help them create something more,” Premo said.
“No two business are alike, but we can work with owners to creatively structure plans that best match their goals,” he said.  “We help make good, small companies even better by providing the resources, knowledge and talent to implement positive, growth-producing changes.”

Unlike the traditional equity firm, Premo Ventures is made-up of entrepreneurs who have started and managed their own businesses in the past.

The strength of this company lies in its diversity of experiences and perspectives, said Premo Ventures board member and Ph.D. Instructor, Dee Kivett.

“We are not a group of bankers or finance gurus, we understand the challenges of small business ownership and have the leaders in place to provide an avenue for success,” she said.  “Our board includes leaders from technical education, staffing, and manufacturing, and theyj plan to remain actively involved with each acquisition, taking personal responsibility for their success.”

Rather than investing in a number of companies and diluting its resources, Premo Ventures will only consider businesses that meet a specific list of criteria and invest selectively based on the relationship and trust built between the equity firm and the business owners.

To mitigate this risk, “we buy a controlling interest in each portfolio company so the business owner is not shouldering the burden,” Premo said.

Once acquired, Premo Ventures will work with existing management teams or build succession plans to recruit new management, he said. Over time, additional investments of $1 million can be made to modernize the organization and pursue more advanced customer market opportunities.

Key Market Statistics
-Precision metal manufacturing is a $55B market
-Market grew 11.1 percent (2009-2013)
-Market is highly fragmented industry with 21,858 firms and 262,896 employees in USA
-50 largest firms generate only 10 percent total market… 75 percent shops have <$3MM sales