After talking with leaders from around the industry, successful firms are consistently putting their attention into one place more than others: the people. Here’s why:

Infinite Electronics is a supplier of electronic parts, serving engineers’ urgent needs through a family of highly recognized brands. In 2023, the Warburg Pincus-backed strategic buyer closed two acquisitions. The firm acquired Netherlands-based Cable Connectivity Group, a supplier of cables, ready-to-connect cable systems and accessories, and Bulgin, a U.K.-based developer and manufacturer of connectors and related parts for harsh-environment applications.

“Our strategy in our place in the electronic supply chain is to address the roughly 20 percent of the market that is not addressed by the main players, the large-scale distributors and large original equipment manufacturers,” says Penny Cotner, Infinite’s president and CEO. “Super high volume production deals, that’s not our space.  We tend to serve the underserved portions of the markets. CCG and Bulgin also hit that space in terms of the nature of the products themselves and the specialization in terms of how they support their customers.”

Cotner adds that the expansion into Europe helped drive the deal, but the glue that pulled the opportunity together was the leadership teams of both organizations. The clear strategy, track record, and clarity of the firm Cotner values are central to the dealmaking process.

Matthias Norweg, senior vice president of corporate development at Infinite, says that the executive team of Infinite all have gone through many deals before and as a result are very well-rehearsed. And then you add Warburg Pincus setting up the financing and closing of these transactions, paired with external partners on the legal and the financial diligence side. Norweg believes that the firm’s valuable and experienced team right out of the gate gave them an advantage in the dealmaking process.

Infinite isn’t reinventing the wheel by focusing on and attributing much of its dealmaking success to the human capital value added to the firm. However, the strategy is certainly noteworthy and applicable to many firms across the industry. Dealmakers continue to focus on target’s track records, strategies and always the team.

Let me know your thoughts on what constituencies you notice among successful buyers at [email protected]

Cole Lipsky