Do want to sell your Manufacturing business for Maximum Value?
Orange County Manufacturing companies are in high demand from buyers, and selling at premiums!
We are Orange County Manufacturing Business Brokers specializing in the sale of Manufacturing companies ranging from CNC & EDM machine shops, sheet metal, to PCB & Electronic Assembly plus more. At Pacific Business Sales we thoroughly understand the process of selling a manufacturing company and we have a very large and diverse pool of buyers interested in manufacturing companies like yours.
What You Can Expect When You Sell Your Manufacturing Business With Pacific Business Sales
Confidentiality is of paramount concern to our clients-sellers and we take this very seriously. All of our ads for your business are general in nature with no specific information that would indicate which company is for sale or precisely where the company is located. Buyers do not receive any confidential information until they have signed a Confidentiality Agreement (NDA) and completed our Buyer Profile which includes information on their financial position, experience, and credit score.
Marketing Your Business
Marketing is one of our strengths at Pacific Business Sales. It’s one thing to have your ad pop up in front of thousands of buyers, but that’s meaningless unless they actually click on it and inquire. We write excellent ad copy for manufacturing businesses and headlines that draw prospective buyers to our ads. We also feature all of our ads so they are at the top of the business for sale websites and not buried with the basic ads.
We also send email blasts to our database of over 3,000 buyers as well as to the BizBuySell buyer database of buyers that have expressed interest in manufacturing-related businesses like yours.
Comprehensive Confidential Information Memorandum for your business
We prepare a comprehensive Confidential Information Memorandum (CIM) for every business we represent. The CIM is the prospectus and marketing brochure for your business that buyers receive after they sign the NDA. The CIM is critical in the buyer’s decision process as this is their first in-depth look at your company. Our CIM includes information about the company, financial statements, staff list (names redacted), equipment list, SBA financing structure, SBA Lender pre-approval letter, and a summary of your services/products.
The first meeting with prospective buyers is with us and is essentially a pre-screening to determine their abilities and frankly how interested and serious they are. After the initial meeting, we schedule a meeting with you, the buyer, and us to discuss the details of the business. Many of the basic questions are answered in our initial meeting, however, buyers often will ask these questions again because they like to hear it straight from the owner. Many of our first buyer-seller meetings are held via Zoom with a second meeting in person for the buyers that want to take the next steps. Of course, the next step after our meetings is to prepare an offer.
Preparing the Offer
All of our Purchase Agreements are prepared on the CABB (California Association of Business Brokers) Asset Purchase Agreement of Stock Purchase Agreement. Our firm has experience in both Asset Sales and Stock Sales (note that an Asset Sale is a transaction type, not to be confused with an asset liquidation – see our page Stock vs Asset Sale). Our experience is that Stock Sale can be critical for you since in some cases a Stock Sale may be necessary if the company has government contacts tied to the corporation. In a stock sale, the buyer acquires the corporation, and the corporate EIN and most important contracts tied to the corporate entity remain intact.
We prepare the offer with the buyer and send it for signature via DocuSign. When the offer has been signed by the buyer we review it with you, explain the details, and prepare a Counter Offer if necessary.
Due Diligence is a very critical step in the transaction process of selling a manufacturing business. This is where the rubber meets the road so to speak. During Due Diligence, the buyer and often their CPA will review the company’s tax returns, P&Ls, bank statements, and other records to confirm the revenue and earnings are what is claimed. The buyer will also be reviewing the overall company to ensure it is a well run and stable business. We facilitate Due Diligence with both Buyer and Seller assisting in the process and keeping it on track. After Due Diligence is complete and the contingency is removed escrow is opened.
We understand manufacturing businesses, their operations, how their financial statements work, and we know how to value manufacturing businesses with their inventory, Work in Process, and A/R. Most importantly we know how to sell manufacturing companies and we get them sold!
It is critical that your Manufacturing Business Broker understands your business, can speak intelligently about it, knows how to prepare offers for a manufacturing business, and how to obtain SBA financing. Bill Grunau, Broker & President of Pacific Business Sales has over 20 years of experience in the high tech & aerospace industries ranging from engineer to senior executive roles of VP and CEO.
Buyer Screening & Qualifications
A vital aspect of selling manufacturing companies is ensuring the buyer is capable of running the business and equally important, capable of closing the transaction. Manufacturing businesses are in high demand and very popular with buyers, consequently, we receive lots of inquiries for manufacturing businesses, and many of the buyers, while financially well qualified, do not have the experience or technical skills to run these companies. At Pacific Business Sales are Manufacturing Business Brokers specializing in the sale businesses like yours and we carefully screen prospective buyers for both financial qualifications and their ability to run the business. Our experience has taught us the buyers with weak industry experience may make an offer but often do not close the transaction. For manufacturing businesses, we look for buyers with experience in manufacturing, aerospace, technology companies, engineering, or relevant technical backgrounds.
Over 90% of our transactions use SBA financing, including SBA financing for manufacturing companies of all types and sizes. We work exclusively with SBA PLP (Preferred Lender Program) banks that have financed many SBA transactions for manufacturing businesses with our firm. We know their underwriting guidelines and requirements and have long-running relationships with these banks.
Why is this important to you as a seller? Simply put, CASH at closing! With SBA financing you don’t have to finance the sale with a Seller Note. In fact, in many cases, we have secured SBA financing for up to 90% of the purchase and with a 10% buyer down payment. SBA financing will also finance the purchase of your A/R (accounts receivable) for the buyer. That means you get paid cash at closing. Often the banks may require a small Seller Note of 10% of the transaction along with the SBA loan and in this case, you would receive 90% cash at closing.
FREE Market Value Analysis
We offer a free comprehensive Market Value Analysis of your business using the same methodology and professional valuation software used by SBA Valuation Analysts. We have excellent comparable sales data for all types of manufacturing businesses sales directly from the SBA closed transaction database. With our Market Value Analysis, you can be confident SBA financing will be approved at the value we recommend.
Manufacturing Company Testimonials
“Military/Aerospace EDM CNC Shop Seller
When I decided it was time to sell my aerospace/military manufacturing company, I had no idea how to proceed, but one name kept coming up – Bill’s. Best call I could have made. Within 45 days, I had multiple offers. Bill handled everything and kept me in the loop almost daily. I really couldn’t believe how smoothly the entire transaction went and ended up with the perfect buyer, and just the deal we had discussed at our first meeting. If you are serious about buying or selling your company, do yourself a favor and give Bill a call.” – Steve W, Aerospace machine shop owner and seller
Are You Ready To Get Started? Let’s Talk!
From Owner To Owner, We Understand How To Sell Your Manufacturing Company
Running a successful manufacturing business is a combination of skill and art. Your business requires technical skills and knowledge of the manufacturing your company does such as CNC, EDM, electrical assembly, PCB manufacturing, components, assemblies, equipment, etc. There’s also a bit of art to it that comes from experience in the industry that isn’t in textbooks. Likewise, selling a manufacturing business is not like selling an ordinary business, you need a Business Broker with experience selling a company like yours.
At Pacific Business Sales we are Business Brokers with experience in both the sale of manufacturing companies and direct experience in manufacturing. Bill Grunau has over 20 years of experience in the tech industry ranging from Engineer to CEO at both private and public companies. He has nearly 20 years of experience selling manufacturing businesses throughout Orange County and Los Angeles County.
Through our experience in selling manufacturing like yours, we understand how to value your business, what is required for buyers, and we have SBA lenders that will provide financing for the transaction. In fact, in 2020 over 80% of our transactions were financed through with SBA financing.
From our experience in selling a wide range of manufacturing businesses we know how to value the business and of equal importance how to handle the value of WIP and inventory at closing. Getting an offer is just the first step, what really counts is when we successfully close the transaction with a happy Buyer and Seller.