Manufacturing Business For Sale 

Buying and Selling Manufacturing Businesses

Manufacturing businesses are appealing to many buyers because they like the idea of producing a product.

They also like manufacturing companies because there are more assets and the buyers sometimes feel more secure about a purchase when they purchase actual equipment as opposed to goodwill on paper. Manufacturing companies can be extremely attractive to buyers that are looking for companies with high barriers to entry.

Buyers will still require good financials, leases, and they will be interested in the age, lifespan, and warranties on the equipment needed to operate the business. Buyers will want to address their concerns about the future of the industry and want to know how secure the product lines are and how long they can expect to move forward with the current products being manufactured. Buyers will want to know whether or not they will need to be innovative with the product lines in the immediate future. Sellers have to be careful only to purchase the equipment necessary for the business because buyers will still want to keep the price of the business at 1 to 3 times the net earnings unless it is a larger manufacturing company.

For example, a buyer will normally be unwilling to pay $750,000 for a company only making a net profit of $100,000 but they are more likely to pay $200,000 or $300,000 with a $100,000 a year profit depending on the equipment and the business.

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620 N. Wymore Road, Suite 260
Maitland, FL 32751
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620 N. Wymore Road, Suite 260  •  Maitland, FL 32751  •  Office 407-478-4101  •  Fax 407-478-4099