Founded in 1989, Design Ready Controls has grown into a leader in control panel manufacturing. With six manufacturing facilities and over 550 employees, their commitment is providing the highest quality products and services to OEM’s in Commercial Heating Ventilation & Air Conditioning (HVAC), building automation and power generation and many other industries. With a growth and innovation mindset, Design Ready Controls is dedicated to evaluating the future of their manufacturing business. One of the biggest opportunities was in their supply chain, specifically fabricated metal. To optimize their business, establishing a metal fabrication division would be a significant step forward and reflect their commitment to driving growth across the Design Ready Controls portfolio. “Rather than investing years into developing these capabilities from scratch, acquiring an established industry expert was the smarter, more efficient choice,” said Chris Jones, Chief Exit Officer at True North Merger and Acquisition.

Finding the Right Business to Acquire

The process of finding the right company to acquire is highly strategic. True North started by creating a long list of businesses in Minnesota that fit Design Ready Controls’ criteria, evaluating potential companies based on geography, revenue, industry classification, and existing fabrication capabilities. But finding a willing seller isn’t always easy. “A bunch of people we approached said no,” Jones said. “And that’s completely normal. Business owners aren’t always sure if a buyer is serious, and many are hesitant to discuss selling, even if they’ve been thinking about it. “Statistically, Jones said 20-30% of business owners in manufacturing are considering selling, but many struggle with the idea of actually taking the next step. That’s why True North follows a multitouchpoint approach. They engage with owners multiple times, answering their questions, and helping them understand what a potential sale could look like. Over time, this approach builds credibility and trust, making it easier for owners to see a sale as an opportunity rather than a risk.

Overcoming the Biggest Hurdle: Trust

When a business owner decides to sell, it’s rarely just about the money, Jones said. So, when True North and Design Ready Controls found Fabrico, a metal fabrication business based out of Champlin, Minnesota they knew they had to take their time building a relationship. “The biggest hurdle is always trust,” Nate Gajewski, an M&A Associate from True North, said. From the start, we knew it was about bringing the two companies together – getting to know each other before anyone would commit and move forward with next steps. That’s completely normal in acquisitions. It takes time for a seller to feel comfortable handing over their life’s work.” While private equity firms and financial investors were likely only looking at Fabrico’s numbers, Design Ready Controls was looking for long-term stability and a shared vision. It was evident to Fabrico’s then-owner Dan Lewis that this was the right move, not just for him, but for his employees and the future of his company.

“We wanted to make sure they felt welcomed. That first visit really settled any uncertainty and helped everyone see where we were headed together.”

John Hacker
CFO at Design Ready Controls

“Dan had built a strong, motivated team with a shared sense of purpose. He wasn’t going to sell to just anyone,” said Kevin Skau, CEO at Design Ready Controls. “We were very intentional in making sure Dan understood why we were looking to acquire a metal fabricator. It wasn’t just about expansion; it was about enhancing our commitment to customer performance by increasing our capabilities in a critical area – metal fabrication. We also recognized the importance of having similar core values and culture to fit with our team and support the growth mindset of our organization.”

The Acquisition Process: Making It Official

Once trust was established, the acquisition moved forward. By March 2024, Design Ready Controls and Fabrico had entered a non-binding Letter of Intent (LOI), outlining the initial terms. Over the next few months, they worked through negotiations — price, terms, and the financial impact of Fabrico’s recent equipment investments. Off-market deals like this take time, Jones explained. Dan hadn’t been actively planning for an exit, so he needed time to evaluate what the sale meant for him personally and financially. By July 2024, they had reached an agreement. The final sale closed in October 2024, and Fabrico officially became Design Ready Fabrication — a fully integrated metal fabrication division of Design Ready Controls.

What’s Happened Since the Acquisition?

The transition has been smooth and successful, thanks to both team’s commitment and team focus to ensure everyone feels as one. One of the first things Design Ready Controls did was invite the new team to visit their Brooklyn Park facility. “It was important for us to show them who we are and how we operate,” John Hacker, CFO at Design Ready Controls, said. “We wanted to make sure they felt welcomed. That first visit really settled any uncertainty and helped everyone see where we were headed together.” Looking ahead, the next 20 years for Design Ready Controls will be focused on strong collaboration, smart growth, and continuing to strengthen the business as a leader in control panel manufacturing and their newly added division of metal fabrication. “Dan has always been about mentoring people, and that’s something we love about him,” Skau said. “His leadership has made his team stronger, and that’s exactly what we want to continue building at Design Ready Controls.”

Advice for Businesses Considering Acquisition

For business owners thinking about growth through acquisition, Design Ready Controls’ experience offers a few key takeaways:

• Be purposeful in how you position yourself. Sellers want to know their company will be in good hands. Lead with your values and vision, not just your offer price.
• Think beyond just financials. Acquisitions aren’t just about buying revenue — they’re about strategically adding capabilities that support long-term growth.
• Stay patient and focused. The process takes time, especially when buying an off-market business. Stay true to your goal, and trust that the right opportunity will come together. “One of the best parts of this process was just being ourselves and showing the prospective sellers what it’s like to be part of our team. That’s what made this deal work,” said Skau.

Looking to Grow Through Acquisition?

If you’re looking for a smarter way to grow, True North Mergers & Acquisitions has a track record of securing better deals for our clients. If you’re searching for accretive growth through acquisition of lower to middle-market opportunities between $10 million and $150 million in revenue, make us your first call. If you are looking to sell or acquire businesses under $10 million in revenue, our main street product, Sunbelt Business Advisors, should be your trusted advisor. Thinking about growth through acquisition? Let’s start the conversation.

True North M&A and Sunbelt Business Advisors: 612-455-0880
$10 Million – $150 Millon: www.tnma.com
Under $10 Million: www.sunbeltmidwest.com