EMS@C-LEVEL
As Forbes, Entrepreneur, Fast Company and SCOOP writer, Philip Stoten, continues to talk to EMS (Electronic Manufacturing Services) executives he learns more about their individual and collective experiences and their expectations for their own businesses and for the entire electronic manufacturing industry.
EMS@C-LEVEL
Global Strategies and M&A Trends: A Conversation with Lincoln International's Chaim Lubin
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The electronics manufacturing landscape is undergoing a significant transformation as companies seek global capabilities and strategic advantages in a post-pandemic world. Chaim from Lincoln International, the largest global investment bank focused on private capital markets, shares exclusive insights from decades of orchestrating EMS mergers and acquisitions.
After a flurry of private equity-driven consolidation between 2015 and early 2020, M&A activity experienced a predictable downturn during COVID and subsequent supply chain challenges. Now, the market is rebounding with renewed vigor, driven by companies pursuing geographic diversification and vertical integration. This resurgence combines both private equity interest and strategic buyers seeking competitive advantages.
What stands out clearly is the critical importance of global agility. Manufacturing leaders face difficult decisions about establishing or expanding operations across various regions including the US, Mexico, and Southeast Asia. Those who can provide customers with production flexibility across multiple geographies possess a significant competitive advantage in today's uncertain regulatory and tariff environment. As Chaim explains, "The best players, the ones that can serve their customers in the way that the customers want, are the ones that have the ability to be global."
For companies considering their strategic options, preparation trumps perfect timing. While cultural fit remains important for integration success, the factors that truly drive valuation multiples are operational fundamentals: revenue growth, profit margins, target markets, and customer relationships. Despite fluctuating transaction volume, multiples have remained relatively stable, reflecting the enduring strategic value of well-positioned manufacturing partners.
Whether you're considering acquiring capabilities, expanding your global footprint, or planning an eventual exit, understanding these market dynamics is essential.
EMS@C-Level Live at APEX is sponsored by global inspection leaders Koh Young (https://www.kohyoung.com) and Creative Electron (https://creativeelectron.com)
EMS@C-Level is hosted by global inspection leaders Koh Young (https://www.kohyoung.com) and Global Electronics Association (https://www.electronics.org)
You can see video versions of all of the EMS@C-Level pods on our YouTube playlist.
Introduction to Chaim from Lincoln
Philip StotenHello , I'm Philip Stoughton . I'm at APEX 2025 . I'm on the Creative Electron booth . I'm joined by Chaim from Lincoln International . Thanks so much for joining me . You were presenting , or your team were presenting , at the EMS Leadership Summit , talking about M&A activity . Give me a quick short intro to Lincoln International and tell me how that went the day before yesterday .
Chaim Lubin, Lincoln InternationalYes . So first of all , phil , thank you very much for having me here . It's really great to be at the show and really just to be able to talk . So on Monday we presented kind of an update on the M&A market and everything that's happened and happening within the EMS industry and related to that .
Lincoln International's Global EMS Focus
Philip StotenAnd are you specifically working M&A in the US or do you tend to have a pretty global view ?
Chaim Lubin, Lincoln InternationalLincoln is the largest global investment bank focused on the private capital markets . I won't go into the whole commercial on what that is , but we do a lot in M&A , highly global , in every geography around the world .
Philip StotenOkay , and is EMS a specialism ? We have been focused .
Chaim Lubin, Lincoln Internationalour team , specifically in our electronics group , has been focused in EMS for well over 20 years . Okay , we do more EMS transactions than anyone on the planet .
Philip StotenOkay , any particular big deals that you've done that we can talk about , or is that all pretty Probably can't ?
Chaim Lubin, Lincoln Internationalnecessarily talk about , but pretty much looking at it this way if there is an EMS deal in the market , whether we're working on it or not , we tend to be around it and have knowledge .
Philip StotenYeah , you're across it and involved
Current M&A Drivers in EMS
Philip Stoten.
Chaim Lubin, Lincoln InternationalWe like talking to the different parties that are interested as well as just involved in everything strategically in the US .
Philip StotenYeah , so when you look at the deals that have been happening recently and the kind of thirst for deals going forward in the past , in the US particularly , we've seen a lot of what I would call roll-ups a whole bunch of maybe 25 to 50 mil companies making a quarter of a billion dollar company by bringing them all together , often funded by private equity . Are those the kind of deals that are on the table , or are you seeing European companies want to get into the US ?
Chaim Lubin, Lincoln InternationalWhat are the drivers at the moment , so every time frame is different . The drivers at the moment , so every timeframe is different . From about 2016 , even 2015 , leading up to really just a few right before COVID , private equity interest and private equity investment on transactions was more significant than we've seen in over a decade . So those buy and builds that you're talking about with private equity highly , highly relevant over that time period . We've seen M&A activity drop off since post-COVID and kind of with the supply chain challenges that we've seen over the last couple of years . But now we're seeing , and we expect to see it resume . We think is going to be a mixture of both private equity interests as well as strategic interests , global supply chain management or global supply chain global capacity expansion as well as vertical integration , and we've seen all of that activity over the last couple of years .
Philip StotenYeah , it's interesting when I talk to a lot of EMS leadership in Europe and I tend to have access at the C-suite , which is really valuable . But I think there's been a lot of COVID slowed a lot of their processes down and they were definitely looking to the Americas as a
Leadership Summit Discussions and Acquisition Motives
Philip Stotengrowth opportunity and they're definitely looking again now , but there's a hiatus because they're not sure whether they need to be in Mexico , whether they need to be in the US , what the tariff situation is going to be . Do you see that as a little bit of a break temporarily on the activity ?
Chaim Lubin, Lincoln InternationalNo , I think what we're seeing in general is the need to be global . You're absolutely right that being in a specific geography like Mexico , with uncertainty on tariffs , is something that a lot of people will take a bit of a pause and say is that really where I'm going to be ? However , if there is a strategic company and they don't have presence in the US , or they don't have presence in Mexico , they don't have presence in Southeast Asia , or even they don't have presence in China , right now they're thinking about that because the way of the environment that we live in is global , and so their customers are thinking where am I going to make this and where is it going to get made , and where's the best place for it to get made ? And because of our administration , because of various different macroeconomic trends , that's changing . So the best players , the ones that can serve their customers in the way that the customers want , are the ones that have the ability to be global in order to shift that around in a more advantageous fashion .
Philip StotenYeah , and I see it as two keywords there , global and agile . If you can create an agile footprint where you can easily move things from one location to another or relatively easily move things from one location to it , or relatively easily move things from one location to another , and you have that global activity footprint in Asia , europe and in North America hugely valuable .
Chaim Lubin, Lincoln InternationalIf you can give your customers that optionality , help them navigate the challenges of the supply chain , then you're gonna have an advantage ?
Philip Stotenyeah , it makes . It makes makes a huge difference to the , to the opportunities that are out there , and you know what people are doing and you know what people are looking for . So when you talk to the people at the summit on Monday , do you feel a lot of them were in the same position , looking for the same solution ? Was there a mix of ? I'd like to be acquired and I'd like to be an acquirer ?
Chaim Lubin, Lincoln InternationalEveryone is in a bit of a different mood , depending on the strategic plan , the growth profile , the trajectory of the given business . Everyone's looking for different things . There are some companies that are going to be more focused on vertical integration . What are the capabilities that I need ? How do I better serve the customers that I'm going after , the end markets that I'm targeting
Culture Fit, Timing and Valuation Factors
Chaim Lubin, Lincoln International, and do I have everything that I need ? Some are looking at it geographically Do I have the capacity where I want that capacity ? Do I have the access where I need it ? Are my customers telling me I need to be someplace else and I'm not there ? And then some are looking at it from the standpoint of I've grown to the point that I want . I've reached the thesis of whether it's a buildup of a founder , private equity ownership , a strategic company . That's looking at something different and those , potentially , are acquisition targets .
Philip StotenYeah , absolutely . There's plenty of people in the industry aging out , and sometimes the root out is acquisition . Two most important things that people talk to me about with respect to M&A and I'm generally talking to people that have either acquired or been acquired is culture , fit and timing . They seem to be the big issues . Is that something you're really careful to take care of ? So if we could perfectly time everything we would all be sitting on a beach somewhere and relaxing a lot more .
Chaim Lubin, Lincoln InternationalBut timing is very difficult . What we tell companies is that it never hurts to prepare early and to prepare right , because that preparation allows you to take advantage of timing . You never necessarily know when the perfect time is , but if it all of a sudden comes up , you want to be ready for it , so preparation is key . The cultural fit aspect is something that is more critically important to certain ownership . It's important from the standpoint also if you look at the success of an M&A transaction . Yeah , the integration process , for sure . In the involvement of the M&A transaction itself , it is more or less important depending on the owner .
Philip StotenYeah , Last question the element of timing obviously impacts valuations multiples .
Multiple Drivers Beyond Market Timing
Chaim Lubin, Lincoln InternationalWhen you see a drop off in activity .
Philip StotenThey tend to go down . Where are they at the moment ? Are they rising ? Are they leveled ?
Chaim Lubin, Lincoln Internationalout . So it's interesting when you look at multiples . The most powerful characteristics that drive multiple are really factors that are not related to timing , things like revenue growth , margin , end market focus , specific customer profiles . There are a lot of different dynamics and kind of . We go down that list of what are those things that really drive value and what makes your company special relative to anyone else . Those are all more important than timing . So even with M&A activity declining or in a call it , a trough area and coming back up , that's going to have less impact on the multiple than the specific characteristics of the company . Now , in general , we've seen multiples remain relatively stable I would put it that way but if you're not hitting on those metrics , that's going to more impact your value .
Philip StotenYeah , and it absolutely makes sense , because sometimes people are actually looking for an acquisition to get into a specific market , to get into a specific customer group or to manage a specific capability , perhaps , that they don't have in terms of RF or a particular sector For sure . Yeah , it makes a difference . Haim , thanks for your time . Really enjoyed our conversation . Let's stay in touch and talk again soon Sounds great .
Chaim Lubin, Lincoln InternationalThank you so much for having me Appreciate it .