Manufacturing
Selling a manufacturing business?
Equipment, working capital, and customer concentration are the three numbers diligence revolves around.
Typical multiple range
3.0–4.5× SDE
Recent comps in light manufacturing and contract manufacturing, sub-$5M revenue band. Equipment and working capital are typically valued separately.
Exit On My Own provides a comparative analysis based on public comparable sales and industry multiples. This is not a certified business appraisal or valuation. Consult a licensed appraiser before relying on any number for tax, legal, or financing decisions.
What's different about selling a manufacturing business
Working capital is a deal term
A manufacturing buyer expects to inherit enough working capital to run the business. The amount becomes a line in the purchase agreement — negotiate it deliberately, not at the closing table. It can either be added to the purchase price OR the bank can finance it for the buyer.
Equipment age and maintenance records
A clean equipment list with service history adds a real number to your range. Annual capex for repairs is a cost of doing business and can typically be added back to SDE. A pile of receipts hurts.
Customer concentration cuts deep
If one OEM is 40% of revenue, your buyer is really buying that contract — and the buyer will need to meet them prior to close. That introduction can be problematic, unless there's a multi-year assignable contract that survives the sale.
See what your manufacturing business is worth.
A comparative analysis grounded in recent comps from your industry and size band.
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