A manufacturer is priced on earnings like any business, and then adjusted for four things a service company does not have: machines with a remaining life, a building that may or may not be included, inventory that has to be counted, and customer concentration that is usually worse than the owner thinks.
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The machines
Buyers separate maintained capacity from a yard of assets. Age, service records, remaining useful life and whether a critical machine has a single supplier for parts all move the price, and a plant with one irreplaceable machine and no service contract carries a visible discount. An orderly asset list with maintenance history is worth preparing before anybody asks for it.
The building
Where you own the property, decide early whether it is in the sale or leased back to the buyer. Selling both together suits some buyers and rules out others, and a lease back at a market rent often produces a better total outcome. Where you lease, the remaining term and assignment rights are a diligence item that can delay a closing by weeks.
Concentration and contracts
One customer at a third of revenue is the single most common reason a manufacturing sale prices below expectation. What helps is evidence of the relationship rather than assertion: length of the trading history, purchase orders, whether you are a sole source, and whether the contract survives a change of control. That last point is worth checking before going to market.
Working capital and inventory
Manufacturers carry real working capital, and buyers buy the business with a normal level of it included. Expect a target to be set from a historical average and a true up after closing. Inventory is counted, obsolete stock is written down, and both are ordinary. Sellers who have never tracked a working capital number find this the most surprising part of the process.
Questions people ask about sell my manufacturing business
Who buys small US manufacturers?
Strategic buyers consolidating a niche, private equity backed platforms adding capacity, and individual buyers with lending behind them. The three price differently, which is the argument for a process rather than a single conversation.
Does my order book count?
Backlog helps, and buyers verify it. Signed orders with delivery dates carry weight; a pipeline of expected repeat work carries far less unless the history supports it.
How long does it take to sell a manufacturing company?
Usually longer than a service business, because diligence includes site visits, environmental questions and an inventory count. Nine to twelve months from preparation to closing is a fair expectation.