Manufacturing Corp Dev solution
Hi all,
My company is a manufacturer and one of our biggest clients has expedited their demand expectations by 1-2 years. Given the accelerated timeline, and frankly our current lack of manufacturing capacity to meet their demands (we would need to open up a new facility), we were thinking of partnering up with another company which could help us in the manufacturing process (think final touches to the product).
My questions are: 1) How fast can a deal like that happen? 2) Should we employ an IB immediately or should we leverage our internal business partners (sales, engineers, supply chain) first? 3) What type of companies should we look at - I know this is vague given the lack of information here but should we target larger companies, specialized ones, etc? 4) How do you value a partnership deal like that (I have never worked on partnerships).
Bump
Going to be so dependent on finer details (understand why you want to keep vague here), if you want someone to paint a fabricated metal product, or galvanize/any coat etc. you’re looking at like weeks and honestly nothing you would probably be involved in from a CF standpoint. More complex would be like apples arrangement with Foxconn where the inventory is sold back and forth throughout the manufacturing cycle - but assuming that would not be the case here, and you’re just subbing out a portion of the manufacturing process... depending on your knowledge of players out there that fit the mold you’re looking at like 2 weeks for folks to turn bids on something like this, ideally you get a couple good bids to 1. Check pricing is good 2. Consider working with multiple mfg partners to eliminate firm specific risk as best you can. How long it takes your company to make a decision once bids are back is more of a Pandora’s box, seen both good and bad processes for this and it can get lengthy with too many chefs in the kitchen sometimes
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