Manufacturing exit guide
Prepare a manufacturing business for a confidential sale
Manufacturing businesses can combine earnings, equipment, premises, workforce capability, customer concentration and regulatory obligations. A useful preparation process makes each component understandable without prematurely exposing the business.
Document production capacity
Describe normal utilisation, bottlenecks, downtime, maintenance practices and the difference between theoretical and practical capacity. Keep operational claims tied to records.
Create an equipment and asset schedule
List ownership, age, condition, finance, maintenance and whether each material asset is included in the proposed sale. Separate book value from any claimed market value.
Explain customer and supplier concentration
Show how dependent the business is on major customers, suppliers or contracts. Record renewal, assignment and change-of-control terms that may affect transferability.
Review premises and approvals
Capture lease terms, zoning, licences, environmental obligations, certifications and transfer requirements. Property ownership should be distinguished from the operating business.
Reduce key-person dependence
Document production knowledge, quoting, quality control, supplier relationships and customer management that depend on the owner or one employee.
Match for relevant transaction experience
A suitable broker should understand the interaction between maintainable earnings, operational assets, working capital and buyer diligence. LeadHarbour can compare relevant broker capabilities after seller opt-in.