Adam Salmen·March 24, 2025

How to Buy a Multinational | Adam Salmen Interview

Adam Salmen is a mid-career professional with 15 years of global industrial experience — including corporate strategy roles in China and Europe for companies like Bayer Material Science and Victrex — who used a search fund accelerator (Nova Stone) to acquire UMEC (United Metallurgical Equipment Companies of Cincinnati), a multinational B2B company that supplies steel manufacturing equipment and sourcing services to steel producers across North America, Latin America, the Middle East, and Europe. UMEC operates as a global one-stop-shop: it qualifies an international network of ISO-certified manufacturers, then handles engineering spec, quality control, logistics, and delivery for steel plant equipment ranging from MRO parts to capital equipment like transfer cars, ladles, and furnace components — a model with few direct competitors globally. The deal closed October 1, 2024, with revenue of $25-50M and EBITDA in the high single-digit millions, at a below-market multiple (under the typical 5.5-6.5x for this type), financed through Key Bank and a complex equity raise that included a failed Wefunder crowdfunding attempt halted by the SEC. The primary challenges are accounting modernization across multiple international entities and ongoing geopolitical risk from global sourcing under tariff pressure, though Adam argues this risk is manageable and that UMEC's value proposition actually strengthens in a reshoring environment. With 28 employees globally and a massive TAM (US MRO steel spend alone ~$4B/year), Adam sees significant opportunity in geographic expansion, green steel transition capex, and growing the North American headcount.

Deal facts

multiple: below 5.5-6.5x (typical range for this type); exact multiple not disclosed
sde ebitda: EBITDA in the high single-digit millions
revenue: $25-50 million (topline revenue range stated)
financing structure: Search fund equity raise (Nova Stone accelerator + independent investors, employees, family offices, high net worth individuals) + debt via Key Bank (mid-market group); not SBA
notes: Enterprise value between $10-50 million (search parameters); closed October 1, 2024; employees received equity stakes; attempted Wefunder crowdfunding raise (~$1.3M pledged) that was shut down by SEC before close; Canadian investment bank brokered the deal via Axial

Why this business

Adam had spent 15 years working in global industrial markets — corporate strategy in China, running an electronics business in Europe — and wanted something that dovetailed with that unique career. He was steered by a professor to pursue large upstream industrial opportunities rather than 'arts and crafts' small businesses. When he found UMEC (United Metallurgical Equipment Companies of Cincinnati), it matched his mandate: a global B2B industrial company with $10-50M enterprise value, a succession problem he could solve, and hair (accounting complexity, geopolitical risk from global sourcing) that he was uniquely suited to manage.

What's working

Deep customer and supplier moat: qualifying manufacturers through ISO standards and building relationships with steel manufacturers takes years; not easily replicable
Business has shown revenue stability through COVID and the first Trump-era tariff wave, with consistent top-line growth since 2014
Strong existing team of 28 technically expert employees across North America who also became equity holders, aligning their interests
Key Bank provided rock-solid debt commitment throughout a year-long diligence process, avoiding predatory lending scenarios
Value proposition actually strengthens in a tariff/reshoring environment: steel manufacturers need a global sourcing partner more, not less, when geopolitical winds shift
Massive TAM: MRO spend by top US steel manufacturers is ~$4B/year just to maintain operations; announced North American expansion plans total $75B; green steel transition by 2050 represents $800B in collective capex

What's hard

Accounting was messy: multiple entities across many currencies using antiquated software, books consolidated only annually; financial diligence took nearly a year from LOI to close
Fundraising was extremely difficult — investors said he was 'dancing with giants' and the deal was too complex, too large, too unfamiliar; multiple investors dropped out during the process
Attempted Wefunder crowdfunding raise of $1.3M was shut down by the SEC the night before closing due to compliance issues with how the company name was disclosed behind NDAs after escrow
Geopolitical risk from global sourcing: tariffs and political pressure around domestic manufacturing are a constant concern for a company that sources equipment globally
Scale of the opportunity means most traditional searchers and investors didn't understand it or want to touch it; had to go to independent sponsor conferences to find aligned investors
Still working through accounting modernization and financial reporting infrastructure post-close

Notable quotes

One investor is like, 'Wow, man, you are dancing with giants.' I still remember that quote on their like rejection letter after I'd presented it. It was this is just too big and I don't understand it and it's away from my core skill set as an investor.

Don't look for a deal with no hair. Look for a deal that has hair that you uniquely know how to shave up and trim up.

What I bought was sitting across the table from the sellers and judging them that they were upstanding, smart and ethical people. And so I can say, yeah, I totally have bought what I thought I was buying.

The night before the fundraising closed, we got a call from a three-letter government agency, the SEC, and they said like, 'We don't think this is compliant.' And I was like, 'Are you kidding me?'