Selling a Manufacturing Business
If you’re thinking about selling your manufacturing business, you should know the steps involved in the process, along with how to get the best price, how to keep the sale of your manufacturing business confidential and how long it might take to sell your manufacturing business.
Selling your manufacturing business is easier with an experienced Manufacturing Business Broker on your side. Synergy Business Brokers is an award-winning broker with experience selling manufacturing businesses and an extensive database of potential buyers for manufacturing companies. We focus on selling manufacturing businesses with annual revenues of $700,000 to $70 million, and most manufacturing businesses that we have sold have a specific niche in their marketplace. We have been selling manufacturing companies since 2003, and in that time, we have compiled a database of more than 30,000 potential buyers.
An example of some of the manufacturing businesses we have sold include:
- Technology manufacturer
- Tool and die manufacturer
- Contract manufacturing
- Food manufacturer
- Glass fabricator
- Plastic manufacturer
- Packaging machine manufacturer
- Consumer products
- Industrial products
- Media manufacturer
- Metal fabrication
- Cosmetics manufacturer
- Beverage distributor
- Electrical equipment
- Fitness equipment
- Electronic Control Equipment
- Supply Chain Manufacturing
Options for Selling a Manufacturing Business
To sell your manufacturing company, you can either opt to do so on your own or with the help of Manufacturing Business Brokers.
Sell Your Manufacturing Company on Your Own
Selling your business on your own can take the most significant amount of time, and some people are tempted to do this when they are contacted by a potential buyer. We have seen manufacturers sell their business on their own for a reasonable price only when they sell to a company that has approached them that they know well.
However, if you decide to sell your company on your own, you still have to pay for the transaction costs, and you can usually get more for the company with multiple bids. Selling your business on your own is risky. If you fail to do it confidentially, you could see your business lose value before you can make the sale.
Sell Your Business With Manufacturing Business Brokers
The most effective way to sell your manufacturing and fabrication business is by hiring a professional business broker with experience selling manufacturing companies. Hiring a business broker will likely result in the most profit in the sale of your manufacturing company, one of the fastest-selling processes for your manufacturing company, and the way you can make the most profit in selling a manufacturing production business. Hire a manufacturer business broker to effectively sell your business and learn about the process and steps we will take to help you retire from your manufacturing business.
How to Sell a Manufacturing Business With a Business Broker
While the first step to selling your niche manufacturing business is to contact Synergy Business Brokers, we’ve broken down the basic steps of getting your business listed for sale through a business broker and the steps it takes to finally sell your business. Below are the steps to sell your manufacturing business.
1. Get a Free Confidential Consultation
As professional manufacturer business brokers, we provide a confidential consultation to start the process of selling your business. We will get a better understanding of your manufacturing company during this consultation. You will get a better understanding of our brokerage process and services as well.
2. Collect Your Manufacturing Business’s Financial Records
We will need your business’s financial records and history. Make sure you have your tax information for the past few years. This information will be used to help determine the value of your manufacturing company.
3. Determine How Much Your Manufacturing Business Is Worth
You can’t get the best price for your business if you don’t know the value of your contract manufacturing business. Factors that may influence the value of your business include:
- How much money your business makes?
- The customers and industries you serve.
- How much your company pays in taxes?
- The total value of your inventory and equipment.
You can make a rough calculation of what your business is worth by yourself, but if you’re looking to maximize sale value, get a professional Business Broker to provide an honest, unbiased assessment of your manufacturing company’s worth.
Many businesses in the manufacturing sector also do their own distribution. We'll find out more about your business, including whether you have an extensive network of distributors or you own a manufacturing and distribution company. In either case, companies in the manufacturing industry are in demand. We can also prequalify your business for financing so that we know how much money banks are willing to lend a buyer to purchase your business.
4. Advertising and Marketing Your Manufacturing Business Is for Sale
Synergy Business Brokers will market the sale of your contract manufacturing business. We have a database of more than 30,000 potential buyers. Our work is in matching up the right potential buyers for each client. We'll look for potential buyers that can leverage your unique products and position in the marketplace to grow your company profitably. This could be another manufacturing company, a private equity firm, wealthy entrepreneurs, or public or private companies outside the industry that want to diversify.
5. Work With Potential Buyers Confidentially
Before you even meet the potential buyers, we work with them to determine who is qualified to purchase your manufacturing company. We have an internal multi-step process for weeding out buyers who are not qualified and buyers who would not be a good match for your company. All of this is done confidentially, and the potential buyers sign a non-disclosure agreement.
6. Have Buyers and Sellers Meet
Once we determine the best potential buyers for your business, we set up meetings between you and the potential buyers. You can discuss your business with these potential buyers, and the offer and negotiation process begins.
7. Offers, Due Diligence, and Negotiations
This stage in the process can happen in one step or multiple. Typically, multiple offers are proposed from qualified buyers. Next, you or the business broker negotiates the sale of your business. Most times, business brokers will be mediators in the negotiation process.
8. Closing and Transition
The final closing takes place when payment is made, and you successfully sell your business in the manufacturing industry. There may be a transition period that is determined during the negotiation of the sale of your business.
This is a simplified sales process above. Please review our full steps to selling a business.
Tips for Preparing Your Manufacturing Business for Sale
We have a few tips for you to prep your niche manufacturing company for an effective sale. Consider investing some time into these different tips to help sell your production business effectively or take steps to increase the value of your business before you sell it.
1. If Possible, Sell Your Manufacturing Company When It Is Successful
If you sell your manufacturing business when it is successful, you will make a large amount of profit on the sale of your niche manufacturing company. Unfortunately, a lot of business owners consider selling their business when it starts to fail. This is a mistake because your business value will be lower when a decline in sales starts to occur.
You want buyers to feel like they’re getting your business at its peak. The best time to sell is when the company is doing great. However, if you've lost your motivation to improve the business, then you may want to sell now before the business starts declining. You also want to make sure you have clear, clean paperwork so potential buyers can see exactly what they are getting.
2. Get All of Your Financial Information Organized
If you are serious about selling your manufacturing production company, you should get all of your financial information organized and prepared. Having your financial information ready to provide to potential buyers will give transparency and clarity to potential buyers. Additionally, a potential buyer of your manufacturing company is more likely to make a higher offer if you are transparent with your finances.
Ensure all of your financial statements, accounting records, and tax returns are up-to-date and accurate. When a buyer is looking for a potential acquisition, they may be more likely to choose your manufacturing company if it appears efficient and well-managed. If there are gaps in your records, now is the time to correct them. A potential buyer wants to know that your business has a solid, well-documented track record of growth.
3. Prep Your Manufacturing Business to Function Without You
Yes, your manufacturing business can succeed without you as long as you prepare for this. For your manufacturing business to succeed after being sold, there are a few steps to take in preparation.
- Train your staff: Prepare your staff for the sale of your business and the business transition. You may also want to train someone to fill your position. Walk them through your everyday job process and ensure they fully understand their new responsibilities and duties as the leader of the business. Make sure your successor understands how, what, and why you manufacture.
- Write down manufacturing procedures: Having your business procedures written down and clearly structured will help sell your business. Ensure you have clearly written company policies and procedures and that essential systems are written out. Be prepared with documentation of every procedure and bylaw relevant to your business and present this documentation to potential buyers.
- Hire and retain employees with a long remaining work life: If your manufacturing business has a workforce full of soon-to-be retirees, you may soon be looking to fill positions with new workers. If a potential buyer believes a large number of your staff will retire after you leave, they may be hesitant to buy. Ensure the majority of your staff will stick around after you leave to lower the risk for a potential buyer.
4. Strengthen Your Business Relationships
When a business changes ownership, a slight strain is placed on its relationships with other companies they work with. It is a great idea to strengthen your business-to-business relationships. Rather than maintaining those relationships with yourself, have your second-in-command focus on building those relationships. This way, other businesses will know employees even after you leave. You can mention you have taken the precautionary steps when you sell your business, so the buyer is more enticed by your manufacturing sector business.
Common Questions About Selling Your Manufacturing Business
Synergy Business Brokers has sold many manufacturing companies. Throughout our years of experience, we have also received many questions about how to sell a manufacturing business.
How Much Should I Sell My Manufacturing Business For?
As mentioned in our selling process, we will help determine the value of your manufacturing business. Then, we will help sell your company for its full worth.
Should I Also Sell My Manufacturing Patents?
Patents are a specific aspect of the manufacturing industry that can boost the value of a manufacturing business. Whether you have manufacturing process patents or patents for your manufacturing products, these high-value assets should be included with the sale of your business since your manufacturing company cannot fully function without them. Therefore, be sure to have the information and documentation on your manufacturing patents when you sell your company.
Why Should I Sell My Manufacturing Business?
There are multiple reasons you might want to sell your manufacturing company, such as:
- You are ready to retire
- You are ready for a change
- You are tired of working in manufacturing
- The timing is right for you to profit the most
Whatever the reason, ensure you are ready to part with your business. There are a variety of factors that determine when it is the best time to sell your business. While you can try to play the market or economy, the best time to sell your business is when you are ready.
You can sell your business locally, nationally, or internationally when working with our business brokerage firm for manufacturing companies. We will go through interested buyers and help find qualified buyers from our large pool of potential buyers.
Can My Manufacturing Business Survive Without Me?
Yes, your manufacturing business can survive without you. Still, it may take a little bit of work to prepare for your departure, and some buyers want business owners to remain at the company for a transition time to make the sale of your business more effective.
Get Help to Sell Your Manufacturing Business
Manufacturing is a business that needs a strong presence at the top to succeed. But eventually, you want your manufacturing business to run practically on its own. This is especially true if you’re looking to sell your manufacturing business. If a potential buyer sees that the company is lost without you, they will pay less than if you have a management structure in place. It's best to have talented people who know what they are doing rather than looking to the owner for guidance.
If you want to sell your business right, get experts to help. Many of those looking to sell manufacturing businesses do not even realize that there are business brokers out there who have an extensive database of potential buyers looking to purchase a manufacturing business. This allows you to get the best value for your business with multiple buyers competing for your company.
Sell Your Manufacturing Company With Experienced Manufacturing Business Brokers
Synergy Business Brokers has experienced Mergers & Acquisitions (M&A) Advisors in the Northeast, Midwest, and South, and we sell manufacturing businesses nationwide. Our focus is on selling manufacturing companies with annual revenues between $700,000 and $70 million, and we would love to have you join our ranks of satisfied sellers. We do not charge an upfront fee because we believe we shouldn't profit without selling the business for you.
Potential Buyers for Niche Manufacturing Companies
You have worked hard to create and grow your niche manufacturing business. Since the business may have a specific niche market it focuses on, you might be wondering what types of buyers would be best to purchase a niche manufacturing business and what business valuation and price you can expect from your manufacturing business's sale. When you work with us at Synergy Business Brokers, we will discuss the best way to sell a manufacturing business and describe our experience in selling manufacturing businesses.
We have a database of more than 30,000 potential buyers that we have built up over many years in business. Part of our process is getting to know your business and how best to position it for sale. We want to understand your products, customers, competitors, employees, growth opportunities, and challenges. We review your financial information and provide you with a possible asking price.
No Fee Until Your Manufacturing Business Is Sold
If you decide to move forward, we'll have you sign our Listing Agreement, but there is no fee until your business is sold. As such, we only want to take on assignments that we feel confident we can sell. We'll develop a document about your company that we will use to market your business confidentially. We'll only provide specific information after a potential buyer has signed a confidentiality agreement and provided some information on their qualifications.
We have a large number of potential buyers for niche manufacturing companies. Potential buyers include:
- Private equity groups
- Wealthy entrepreneurs
- Other manufacturing companies
- Companies that would like to leverage your unique skills, customers and employees
We will market your business and contact a large number of potential buyers, and we'll only introduce the ones that are qualified and most interested. We typically get multiple offers, which gives us the leverage to negotiate the best price and terms on your behalf.
In addition to price and terms, you will want someone you feel comfortable with to take over your business. You may want to work with them on a transition of the company to put them in a good position in the future after the sale of your manufacturing business. For example, most of our sellers are interested in retiring from their manufacturing businesses. Providing a transition to the buyer gives them a good transition into the next phase of their life enjoying retirement.
Free Confidential Consultation
We offer a confidential consultation for selling a manufacturing business. To get started, you can fill out our online form. Below are some tips and steps in the process of selling a manufacturing company.
- Review business goals and financial information: We will discuss your business and goals and review your financial information to provide you with a potential selling price.
- Design a marketing document: Next, we'll design a marketing document to outline the advantages of your manufacturing company. We won't provide your name or identity until potential buyers sign a Confidentiality Agreement and provide some financial qualifications.
- Meet with potential buyers: Then we'll set up meetings with the best potential buyers and answer any questions they may have before they submit an offer to buy your manufacturing company.
- Negotiate offers: We'll negotiate the offers and advise you on the advantages of each one.
- Get the best price and terms: We'll answer questions during due diligence and keep things on track with the attorneys. There are no fees for any of our services until your business is sold. We get paid based on a percentage of your sale price, so our goals are aligned in trying to get the best price and terms that we can.
- Schedule a consultation: If you would like to have a confidential conversation with us, we will provide you with some of the answers to the questions you may have, and we'll learn more about your business. We sell manufacturing businesses throughout the U.S. and have Senior Advisors located in PA, TX, FL, IL, LA, NY, NJ, CT and MA that can speak with you. To get started, all you have to do is call us for a confidential consultation at 888-750-5950 or fill out the form on this page.
To review more on us, you can read some tips for selecting an M&A firm or Business Broker to evaluate if we might be a fit to sell your company.
Contact Us to Sell Your Manufacturing Business
At Synergy Business Brokers, our success rate means you don't pay a fee until we sell your manufacturing business. When you work with us at Synergy Business Brokers, you get the following:
- Integrity and honesty
- Experienced negotiators
- Confidential business sales
- Award-winning salespeople
- Network of national and local contacts
- Professional M&A advisors and business brokers
- Nationwide and international exposure to those looking to buy a manufacturing business
- Affiliations with prestigious associations, including International Business Brokers Association (IBBA), Mergers & Acquisitions (M&A) Source, New England Business Brokers Association (NEBBA) and New York Association of Business Brokers (NYABB)
If you have more questions for us, call for a confidential consultation. You can reach us at 888-750-5950, by email at [email protected] or through our form online. We have been executing Mergers & Acquisitions in the Manufacturing industry since 2003. To view our current manufacturing businesses for sale, please visit Manufacturing Businesses for sale.