Manufacturing

Selling a manufacturing business, at a price that reflects the plant.

Manufacturers are bought for product, capacity and margin. Getting all three presented properly is what separates an average offer from a strong one.

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Overview

What buyers look for in manufacturing.

Owner-managed manufacturers are often worth more than their accounts suggest, because value sits in things the profit and loss does not show: proprietary product, tooling, long-standing customers and skilled people who know the process.

We build the case around those assets, then take it to trade buyers and investors who understand capacity, utilisation and the cost of replicating what you have already built.

Value drivers

Where the value actually sits.

Proprietary product and IP

Own designs, tooling and protected IP move a business from contract manufacturer to brand, and the multiple follows.

Margin and utilisation

Buyers model spare capacity. Headroom to grow without capital investment is worth real money.

Customer spread

Long relationships across several sectors reduce risk far more than a single large account, however loyal.

Plant condition

Well-maintained, current equipment removes a capital expenditure argument from the negotiation.

Who buys

Buyer appetite today.

Trade buyers dominate, typically acquiring capability, capacity or a customer list. Private equity is active where product is proprietary and margins are defensible.

  • UK and overseas trade buyers adding capacity or product
  • Private equity backed industrial platforms
  • Management buy-out and buy-in teams
  • Customers or suppliers integrating vertically

Before you go to market

Preparation that pays.

  1. 01

    Normalise the accounts for owner costs, property and one-off items.

  2. 02

    Record machine capacity, utilisation and maintenance history.

  3. 03

    Confirm ownership of designs, tooling and trade marks.

  4. 04

    Identify the key operational knowledge that currently sits with one or two people.

Questions

Selling in manufacturing, answered.

Confidential and no obligation

Find out what your manufacturing business could be worth.

A deal leader who knows your sector replies within one working day.