Do decent/reasonably-priced small- manufacturing businesses actually exist?

January 25, 2025

by a searcher from Virginia Polytechnic Institute and State University (Virginia Tech) in Williamsburg, VA, USA

Looking for a small/medium manufacturing acquisition, with a reasonable multiple. Don't mind the business having some hair on it if the financials at least make sense and the product is understandable. After reviewing 5-10 CIMs/month for 1 year, I've only seriously pursued 1 enough to make an offer. Working on adjusting my search methods and being more flexible, but not feeling confident this is going to work out.

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I understand your frustration. I have worked with many customers looking for the right manufacturing company and many have had to look for a while. The issues you identified in your post does make it challenging. However, I have had plenty of customers ultimately find a company that was the right fit or find a path to make a company that initially did not appear it would work get into a position where it does make sense. As I tell searchers, the key is to be flexible in either the geography or industry. The more things you constrain, the less likely you are to find the perfect fit. Also, it can take reviewing many businesses to find the right one. No business is perfect. They all have some risks.

If you ever want to talk, you can reach me here or directly at redacted

Reply by a professional
from Concordia College, Moorhead in Minneapolis, MN, USA

The short answer is yes, they do exist. I'm assuming you are planning to be an owner/operator., so here is a thought that might help frame your mindset...owners sell their business based on what it has done in the past. Buyers buy businesses based on what they are expecting it to do in the future. A "reasonable price" has more to do with your ability to grow a business and it's profits and less to do with your ability to crunch numbers and assess it's current value.

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