Buying a Manufacturing Business for Sale

There are several good reasons why a manufacturer or an entrepreneur might be considering buying another manufacturing business. Acquiring a manufacturer can help you secure your supply chain or even allow you to bring product manufacturing in-house. As part of a diversification plan to develop into new markets, you can acquire a manufacturing company with a complementary or competing product to assist you in securing your customer base.

Bronwen Barnard

11 February 2022

Summary

There are several good reasons why a manufacturer or an entrepreneur might be considering buying another manufacturing business.

Acquiring a manufacturer can help you secure your supply chain or even allow you to bring product manufacturing in-house. As part of a diversification plan to develop into new markets, you can acquire a manufacturing company with a complementary or competing product to assist you in securing your customer base.

Tips for Purchasing a Manufacturing Business

Manufacturing businesses are becoming increasingly more attractive among those looking to extend their portfolio of company purchases. Manufacturers are in high demand, as more businesses try and keep all manufacturing and business operations in-house. However, how can you measure the genuine worth of a manufacturing business before investing? Before buying consider the following tips:

Unique Product Manufacturing Rights

Businesses that manufacture a one-of-a-kind product are appealing, but buyers should consider if the business has a monopoly or not. If the unique product is easily reproducible and the company lacks original intellectual property, rivals may seize market share during the ownership change.

Having a one-of-a-kind product or service is beneficial, but controlling the rights to its manufacture or distribution is a significant advantage.

Growing Business Sector

A buyer should become familiar with the sector of the manufacturer business that they intend to buy. This knowledge should cover not just the increase in demand, but also the availability of competent employees. Even if a manufacturer has access to a large number of possible contracts, without a staff to support them, the company may stagnate or even fail.

Evaluating a Manufacturing Business

A critical component of the buying process is ensuring that you do not overpay for the acquisition and that the purchase retains its worth. That's why you have to do your research! This research can be divided into three parts: the business's past, present, and future.

The "past" element of the business evaluation entails looking at how long the organization has been in operation and how much has it grown. The "present" refers to their existing clientele, projects, and profits. Assessing the "future" of the company is difficult, but it relates to the staff, sales pipeline, and overall industry forecast.

Luckily, if you decide to buy a business on Business for Sale you have access to professional market-related business valuation to ensure you make an informed decision.

Manufacturing Businesses for Sale in South Africa

The easiest way to find the perfect manufacturer business for sale is to browse our listings. Here are just a few great options of businesses for sale:

Corporate Clothing Manufacturer: Long established Corporate Clothing Manufacturer & Supplier with an amazing track record with clients from around the globe.
Irrigation Manufacturer: Irrigation business using latest technologies in the design, manufacture and installation of irrigation systems. Over 20 years of experience serving major producers in the agricultural sector.
Sunflower Oil Production: Owner managed agri-food processing plant. A company that adds value to farmed sunflowers in an end-to-end operation producing export quality sunflower oil.

Visit Business for Sale to check out an array of listed manufacturing businesses for sale nationwide!

Author: Bronwen Barnard

Director

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