Remember that scene from Legally Blonde where Reese Witherspoon’s character is invited to a Halloween ‘costume’ party and shows up as the only person in costume (a pink Playboy bunny suit at that)? Laughed at, she turns the moment into one of self-empowerment.

That kinda happened to us—without the pink Playboy bunny suit.

We attended a Private Equity Conference. If you know the sector, you know the uniform: khaki trousers, white (or blue) oxford shirt; blue sport jacket or sleeveless Patagonia vest; loafers.

We showed up in boots, jeans and pullovers fresh from walking the floor at a manufacturing prospect we were in talks to purchase.

But it wasn’t just the ‘costume’, it was the attitude. Our approach to ‘buy and build’ was almost 180-degrees apart from the folks attending this conference. In conversation, we found that some of them never visited the companies they sought to acquire. Huh?

They said, “We can learn all we need to know from the spreadsheets.”

It’s true you can learn a lot from assembled data, but here are some things you cannot learn:

Values. Not the financial kind, the human kind – what does the company value and how do those values show up? One seller told us he was the sixth-generation owner of the company and we “better not f*ck it up!”

Stature. Beyond its role in its industry, what is the company’s role in the community? It matters when, for instance, the company is the largest employer in the county.

Relationships. Numbers are great, but they cannot provide the context of walking the floor, seeing employee interactions one on one and understanding how they jive with management.

On day three of this conference, we packed up and left. This group had nothing to teach us and we had companies to respond to.

Look, they are not wrong – there are certainly companies out there for these guys to bid on and buy. But at MRCA our goal is to build. For us, the most effective way to do that is to maintain what our prospects do well – not to replace it. We are not looking for turnaround stories. We look to continue the operations that made these companies worth something to begin with.

The R in MRCA stands for Revitalization. We maintain what’s there and guard and grow the employee base, fostering new ideas and synergies.

So yeah, we’re not like the others. Then again, like Reese, we own that and it is what makes sellers say yes to us even when they have more profitable offers.

Starting as a repair center for local residents’ farming equipment in 1962, W.E. Morris’ 2,400 square foot facility in Brazil, Indiana grew to one of the nation’s largest high-volume precision machine parts makers focused on Tier 1 parts for General Motors and other large scale customers.

Chip Morris, fourth generation leader of this family namesake company, realized that with no more Morris to take the reins, selling the company became the most viable option to secure the Morris legacy, retain the employees, and keep the company going.

Letting go of a 50+ year family commitment was not without challenges – the weight of legacy, combined with employee family it gathered along the way (some of them with 40-year tenue at the facility), proved to be daunting. This was not about finding ‘any’ partner. It was about finding the right one.

Chip and his leadership team first met MRCA over lunch. They immediately dismissed the guys; the general sentiment was “we’ll never hear from them again.”

But MRCA kept in contact. Moreover, when Morris and the team narrowed the suitors to a few groups, a pivotal moment ensued: Chip asked for plans from each group. Ultimately, they sought to:

•  Avoid those who wanted NO involvement

•  Avoid those who wanted to dismantle and sell off parts of the company

•  Focus on those who focused on people (remember, those employees are ‘family’)

On asking potential acquirers for plans – MRCA said “We don’t have one” (this intrigued Chip). He thought, “Well, at least they are honest!” But what stood out for him and his team was when MRCA said, “We’re going to take 6 to 12 months to learn your business before we make any recommendations. You’ve been successful up to now – why do we need to change anything?”

For a seller whose principal consideration was LEGACY, this sounded like a group he could align with. More than that, a team his employees could work alongside. Being fourth generation and handing over the reins meant finding someone who could respect and carry forward the family legacy PLUS ensure his people were properly respected.

MRCA came with no preconceived notions – with no “playbook for how we do this” – which was different and, in the end, he felt like this showed respect for his values.

He found MRCA to be:

•  Down to Earth

•  Approachable

•  Accessible

•  Share the same work ethic he does (this was very different from others)

Most of all, Chip felt heard. His concerns were carefully understood. MRCA asked more than they spoke.

In the end, persistence paid off – Morris Manufacturing received several offers. Some were more lucrative, but MRCA felt like the right fit. Chip said while MRCA lacked a plan it had a vision and that speaks to longevity.

For over 40 years, Hose Assemblies has provided custom hoses for OEM appliance makers (and some notable brands). Given its size and scope, Hose Assemblies is a high volume, low-margin business – this derailed some prospective buyers seeking higher margin opportunities.

Mat Veldman led the process of taking Hose Assemblies to market. “I’ve been in manufacturing for a long time, and you can tell a lot by reactions on the plant floor. The few firms who actually came to visit us were awestruck by our everyday reality: the machinery, equipment, and automation. If that wowed them, I had a hunch we would not be a fit.”

His first impression of MRCA was: they showed up. They took time to visit us and to better understand Hose Assemblies. MRCA execs are manufacturing veterans – they arrived on the plant floor and knew what to expect. This stood out to Mat because the few others who visited seemed to get lost among the machinery or automated systems. MRCA demonstrated through its actions this was not their first rodeo.

Mat continued, “As a high-volume/low-margin business we needed a partner who saw us as something more than just that. We kissed a lot of frogs.” – few came to visit; not one wanted the whole package – they all seemed to want different things. “We were not a turnaround. I’ve been involved in turnaround businesses and, that is not what we are,” continued Mat.

Mat and his team felt MRCA approached the conversation with a relaxed style that felt like a fit for how they operate. MRCA understood business continuity was the focus (not a need to be ‘fixed’).

His team was struck when the MRCA execs asked, “How do you make the US more competitive when labor costs are so much higher?”

The team felt this was a higher-order question – not solely for his business but dug into their brain and operating principles. It felt like the game had been elevated from selling to partnering.

Operational improvements? Sure. But no wholesale change was needed: On paper (and in reality) Hose Assemblies reliably met all its financial needs but was not growing. Its state-of-the-art plant was under capacity. It needed some fresh ideas. MRCA knew the enterprise was just fine – and that was an ideal place to start. Precisely the kind of partner Mat and his team were looking for.

At MRCA, we’re taking a different approach to ensure America’s manufacturing capacity grows.

MRCA’s Chief Strategy Officer, Jason Azevedo, sits down with Bruce Langford on the Mindfulness Mode podcast to discuss influences, effects on emotions when the stakes are high, thoughts on breathing, and how he and his team use levity and laughter each day as a tool for perspective and keeping things grounded.

It’s the employees that make the business.

Based in Elroy, Wisconsin, custom plastic injection molding company Wisconic is the county’s largest employer. Its owner felt he was “aging out” of the leadership role and, with no heirs to take over, the only solution was to find a buyer.

The process of brokering a company for sale is straightforward. The big unknown is how employees and customers will react. That’s where MRCA differs from other prospective buyers – it is one of our first concerns. Misti Hicks, head of Accounting at Wisconic, who held a key role in shepherding the sale, felt MRCA’s approach was refreshing. Other suitors simply asked for spreadsheets and analysis where MRCA shared not just the data they sought but why it was important. Suddenly she and her colleagues felt more in the loop, more informed, and part of the process versus a footnote.

Equally critical are longstanding clients whose products, processes, and deadlines are deeply tied to Wisconic’s deliveries. Sitting across from those key clients, MRCA’s main message was “Nothing much is going to change. Why would we mess up a good thing? Your deliveries will be met, your processes respected and protected.”

MRCA felt it was critical to quell those concerns early and upfront. Not with a plan around the changes they intend to make. It was the opposite – it was about business as usual and about a broader vision.

For clients and employees, business continuity is a vital component in any transaction:

•  Will the employees still have a job?

•  Can customers continue to rely on service & delivery?

MRCA was consistent: Ownership may change, but business operations would remain in place. Wisconic continues its operations and contributes to the growing portfolio of MRCA’s American manufacturing brands.

WGLT in Bloomington, Illinois, an NPR Network affiliate, covered our acquisition of Technical Metals. Read the story here.

Jason Azevedo, MRCA’s Chief Strategy Officer, stated, "TMI fits our investment thesis of working with successful, legacy companies to expand and help build for the future. It is important that we maintain this skill and capacity in the United States.”

“We were looking for a partner who understood us—understood this is a family business, and we consider clients and employees family," TMI General Manager Rebecca Hoffman said in a statement. Hoffman is the granddaughter of the company's founder.