Objective, Investment Banking & Valuation (“Objective”), an award-winning middle market investment banking and valuation firm, is pleased to announce that it served as the exclusive financial advisor to AEM in its sale to Industrial Growth Partners (referred to as “IGP”). IGP has acquired AEM (Holdings) Inc., AEM Group Limited, and their subsidiaries (referred to as “AEM” or the “Company”).
AEM designs and produces mission-critical, passive circuit protection components through two divisions. AEM’s A&D division provides advanced, high-reliability fuses, ferrite chip beads, and tin whisker mitigation products for satellite, defense, and aerospace applications. AEM’s Commercial division provides high-end surface mount fuses and inductive components for commercial applications, including IT, visual display, automotive and EV, power tools, lithium battery, 5G, IoT, security devices, and telecom.
Case Study Details
Business Overview & Owner Objectives
AEM (“AEM” or the “Company”) is a market-leading designer and manufacturer of proprietary and patent-protected fuses and other critical electronic components for applications in the aerospace & defense, automotive & industrial, and commercial electronics industries. The Company was formed in 1986 and is headquartered in the US with substantial operations in Shanghai, China.
After building AEM over the previous 34 years, the owners desired to sell AEM in order to focus on other pursuits. The owners hired Objective to design and execute a tailored competitive sale strategy wherein prospective buyers on a global basis would be engaged.
Process
Objective developed a compelling offering memorandum, a comprehensive global list of relevant strategic and financial buyers, marketed AEM to those buyers in a confidential manner, and coordinated buyer due diligence and management meetings, culminating in successful negotiations with a group of several fully vetted buyers.
Challenges
At the time of the sale, prospective buyers were not allowed to travel to China so all due diligence of that operation had to be done virtually and with the use of China-based advisers. The diligence of the China operation was significant given that it had over 400 employees and two large Company-owned facilities. Objective vetted each buyer initially based on several key criteria including an ability to complete a global and partially virtual deal such as this.
Results
AEM was sold to a prominent US-based private equity firm, Industrial Growth Partners (“IGP”). IGP saw great value and promise in AEM and competed against several finalist buyers for the purchase of the company. AEM’s Owners were delighted to sell to IGP given the opportunity for further growth and IGP’s time-tested stewardship of similar companies.
If you would like to discuss your own transaction goals contact the Managing Directors from our M&D Industry Group below, or reach out at (800) 849-7010 or [email protected] to be directed to the appropriate team member.
Disclosure
The above testimonials may not be representative of the experience of other customers and past performance is not a guarantee of future performance or success.
This news release is for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. While the information provided herein is believed to be accurate and reliable, Objective Capital Partners and BA Securities, LLC make no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person. Securities and investment banking services are offered through BA Securities, LLC Member FINRA, SIPC. Principals of Objective Capital are Registered Representatives of BA Securities. Objective Capital Partners and BA Securities are separate and unaffiliated entities.
