Selling Your Manufacturing Business

Boost Employee Productivity by Adopting Lean Manufacturing Principles

Lean Manufacturing

If you are thinking about selling your business at some future date, you should take steps now to implement industry proven steps to a more efficient workplace. The best approach is to embrace the core principles of Lean Manufacturing (“Lean”). This will give you a great story to tell buyers who already understand the value of this well-known approach.

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Sell Your Manufacturing Business on a High

Activity in manufacturing M&A is booming. The California Association of Business Brokers (CABB) predicted back in 2015 that this will be a decade of Baby Boomers both buying and selling businesses, turning over $10 trillion worth of assets and 12 million businesses. In 2019, this prediction still holds. A Forbes article from just this past September forecasted that M&A activity in manufacturing will continue its increase in the next 5 years through the digitization of the industry. All accounts point to a strong market for manufacturing M&A.

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Building an enterprise that can survive your absence – it’s all about processes and systems

sell your business

In an earlier blog post, we talked about what a manufacturing business buyer wants to see in a potential acquisition. We alluded to the risk of information and skill concentration in your employees, but we need to make it clear that this risk is most significant at the top of the organization. More importantly, it’s a risk that often convinces a buyer to pass you up for a more attractive acquisition. If a buyer decides to make an offer it may be lower than you expected because they don’t believe the business can thrive without you. It’s up to you to start building a business that can continue to prosper when you are gone, and you should begin that process before actively trying to sell your business.

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4 Critical Steps to Buying a Manufacturing Company

Buying a Manufacturing Company

If you have been dreaming of owning your own business for years, there’s no time like the present to ramp up your search! We previously wrote an article on the “101 Questions You Must Ask Before Buying a Manufacturing Company.” Before you can even ask these questions however, you will need to find the right business! Click to read more and learn more about the 4 Critical Steps.

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What Acquirers Really Want to See in a Manufacturing Business

Manufacturing Business Buyer

If you are thinking about retiring in the next few years, you may be wondering what it really takes to sell a manufacturing business and attract a qualified buyer who can sustain and grow your business to the next level. Financials are important, but some other areas of buyer scrutiny may surprise you.

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How Smart Manufacturers are Closing the Skills Gap – Apprenticeship

apprenticeship

Last year, there was a net gain of 284,000 manufacturing jobs – the most we have seen since 1997. Manufacturers Alliance for Productivity and Innovation (MAPI) estimates that production will continue to grow at a rate over 2% through 2021. The average starting salaries have risen, but manufacturers still find it difficult to source adequate qualified entry-level talent. In a recent white paper, Deloitte singled out the manufacturing talent shortage as the single biggest threat to growth:

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Manufacturing M&A – Year End Review & 2019 Predictions

Here’s a look at the types of manufacturing companies that sold in 2018 and what we’re expecting for 2019. Everything we’ve sold this year (and for the last several years) has had multiple offers. Not only has each listing had multiple offers, but the listings are going under contract with increasing speed. Here are some 2018 highlights:

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How Do Rising Interest Rates Affect The Sale Of Small Manufacturing Companies?

Rising Interest Rates

Considering retirement soon? At the start of 2019 many business owners are examining if this is a good time to put their manufacturing business on the market and head towards retirement. With interest rates rising four times in 2018, it’s wise to look at how this affects the sale of small to mid-size manufacturing companies. In considering this question, one must consider how interest rates affect the Debt Service Coverage Ratio (DSCR) on acquisition loans. What Is Debt Service Coverage Ratio And How Do Interest Rates Affect It? DSCR is…

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Will The M&A Market Peak In 2019

market peak

Last week I attended a mergers and acquisitions conference attended by both intermediaries and private equities. A major topic of discussion was whether or not the M&A market peaked as we enter 2019. The absolute consensus was that we are in a market bubble. Some believed the market had already peaked, others believed there was possibly another year or slightly more before the M&A market peaked.

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