For several years Accelerated Manufacturing Brokers, Inc. has been educating manufacturing business owners about existing market conditions for manufacturing M&A, specifically the affect retiring baby boomers will have on the market. Between 2008 and 2014 scores of those expected to retire postponed as a result of the financial crises and the poor economy in the following years. Manufacturing M&A activity began to increase steadily between 2015 and 2017. During that time, we’ve returned to a Seller’s market. In fact, in 2017 every manufacturing business we sold received multiple offers. While this activity is expected to continue in 2018, recent tax reform changes will likely dramatically spike the number of businesses that come on the market, as sellers seek to exit during a business friendly and favorable tax regime.

Why You Should Act Now - 2018

The pricing of small manufacturing businesses changes over time and is very much a product of supply and demand. Clearly other things come into play, but supply and demand is a bedrock in the determination of how much buyers are willing to pay. For the last few years, quality buyers have outpaced deal flow. As a result, when a quality manufacturing business comes on the market, buyers have lots of competition, which naturally increases prices.

With sweeping tax reform now in place, deal flow will naturally increase, especially in light of how many boomers postponed retirement in recent years. Increased deal flow means over the course of time as buyers have more choice, lower sale multiples may start to prevail. If you are considering retirement in the next five to seven years, you may want to consider the value of obtaining a better sale price now for your manufacturing business, rather than waiting. Ask your financial advisor for help in determining the difference to your bottom line in selling now and investing the proceeds verses working for a few more years. The difference may surprise you.

Find Out What Your Manufacturing Company Is Currently Worth

In order to make the best and most informed decision, you’ll need to know what your manufacturing business will likely sell for in today’s market.  Accelerated Manufacturing Brokers, Inc. specializes in the sale of lower middle market manufacturing companies nationally. We provide our clients with the greatest exposure to the most qualified buyers. Quality manufacturing company business owners come to us to achieve the best results in a time frame that beats the national average. Contact us today for a confidential consultation.