Has anyone closed on a company using toll manufacturing?

searcher profile

August 01, 2025

by a searcher in Illinois, USA

I'm exploring a small (~$500k SDE) sealants and glues manufacturer that looks quite interesting. All formulas/IP are proprietary, but everything is toll manufactured..ie. outsourced. Branding/name recognition in the market seems pretty solid, as far as I can tell. Are these viable for acquisition, and more importantly, scalable? Curious if anyone has looked at or closed on a firm utilizing toll manufacturing. Seems like its effectively a distribution / ecommerce model. I like the idea of moving production in-house, just not sure of the feasibility or cost.
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commentor profile
Reply by an intermediary
in Austin, TX, USA
I used to due toll manufacturing for large consumer brands. The equipment costs are well into the millions. Best to keep subcontracting the work.
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Reply by a professional
in Philippines
If you need assistance with financing, feel free to email me at redacted or text me at###-###-#### .
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