Industrial & manufacturing
Selling an industrial or manufacturing business
Machine shops, fabricators, equipment suppliers and component makers. Buyers for these businesses look hard at the equipment, the people and the customers, and we help owners prepare for those questions.
What buyers will ask about
Industrial buyers, whether a competitor, a larger manufacturer or an investment group, usually want to know three things: what the shop can make, who it makes it for, and whether the people and know-how will stay after you leave.
Knowing these questions a year or two ahead gives you time to prepare good answers.
Equipment
The age and condition of the machines, and whether a buyer will have to spend heavily on replacements soon after closing. A maintenance log and a realistic replacement schedule help.
Customers
How sales are spread across customers and industries, and how long the main relationships have lasted. One customer making up a large share of sales is the most common concern.
Skilled people
Machinists, programmers, welders and supervisors are hard to replace. Buyers want to know who the key people are and whether they’re likely to stay.
Quality and certifications
Quality certifications, inspection records and process documentation that keep you approved with demanding customers.
Repeat work and quoting
How much revenue comes from repeat orders and ongoing programs, and whether jobs are quoted and costed accurately enough to protect margins.
Real estate and working capital
If you own the building, it’s often handled separately from the business. Inventory and work in progress can be large and need to be agreed in the deal.
Selected transactions in this industry
Industrial hydraulics
Innovative Hydraulic Equipment Supplier
Deal value $6,800,000
Sold
A manufacturer and supplier of hydraulic systems designed for industrial efficiency and durability.
View detailsPrecision machining
Precision CNC Machine Shop
Deal value $2,400,000
Sold
A modern machining facility specializing in high-accuracy CNC manufacturing for complex industrial components.
View detailsMetal fabrication
Metal Fabrication of Machinery & Equipment
Deal value $2,400,000
Sold
An industrial fabrication company producing metal structures and machinery components.
View detailsIndustrial components
Precision Tooling, Components Manufacturer
Deal value $2,300,000
Sold
A manufacturer of high-tolerance industrial components, providing machining and manufacturing solutions.
View detailsIndustrial & manufacturing
Precision Tooling & Industrial Components Manufacturer
Published value $2,000,000
Sold
View detailsIndustrial & manufacturing
Industrial Cutting Tools & Machine Knife Manufacturer
Published value $1,100,000
Sold
View detailsIndustrial & manufacturing
Industrial Filtration Vessel Manufacturer
Published value $1,000,000
Sold
View detailsIndustrial & manufacturing
Heavy Equipment Attachments Manufacturer
Published value $900,000
Sold
View detailsFrom a client
More testimonialsKingston team prepared strong financial normalization analyses and implemented an effective screening process for prospective buyers. We were pleased with the buyer they introduced, and confidentiality was maintained throughout the year-and-a-half process. Protecting the company’s confidentiality was extremely important to us.
Useful reading
Would Your Business Run Without You?
Buyers pay for what a business earns after the owner steps back. Here’s how to see where your business depends on you, and what to do about it.
How to Prepare Your Business for Sale Over the Next 12 to 24 Months
A practical timeline for owners who expect to sell in the next year or two, from getting an honest starting point to the months just before going to market.
SDE or EBITDA: How Buyers Measure What Your Business Earns
Buyers don’t value your business on the profit in your tax return. Here’s how they rebuild your earnings, and why the measure they choose matters.
Confidential conversation
Thinking about selling, now or in a few years?
Start with a confidential conversation. You don’t have to be ready to sell. We can help you understand what your business might be worth and what your options are.