Manufacturing brokers: what a manufacturing broker does, and what they do not

Manufacturing broker means two different things depending on who is saying it. In a business sale it is an intermediary who sells manufacturing companies. In procurement it is somebody who places production work with factories. This page is the first, and the distinction matters because searching for one turns up the other.

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What the sale intermediary does

Prepares the company for sale, including the asset schedule, the working capital picture and the customer concentration story. Reaches strategic acquirers and private equity backed platforms that do not browse listings. Runs the offers to a timetable and manages a diligence process that includes site visits and an inventory count.

Why the specialism matters

A generalist who prices plant on book value, ignores work in progress and treats one customer at a third of revenue as a detail will lose you more in the price than the whole fee. Ask for two closed manufacturing sales in the last two years and speak to those sellers about how diligence went.

What it costs

A success fee on a declining scale, often with a retainer, and a minimum that binds on smaller companies. Published US commissions on this site run from 5% to 15% across the firms that print anything, and manufacturing specialists rarely publish. Compare three written proposals on the minimum, the tail and the buyer approach plan.

Questions people ask about manufacturing brokers

Is a manufacturing broker the same as a business broker?

It is a business broker with a specialism. The difference that matters is whether they have handled plant, inventory and working capital before.

Do I need one, or an M&A adviser?

For anything a fund or a strategic acquirer would buy, an adviser running a process is usually the right instrument. Small manufacturers with local buyers can sell through a broker.

What is the most common valuation mistake?

Pricing equipment separately and adding it to an earnings multiple. Buyers price earnings and check whether the plant can produce them without immediate capital spending.

Sources

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