The value of a manufacturing business
What is the real value of your manufacturing company? What is your manufacturing business worth? What multiples are used in the manufacturing industry? What does a buyer appreciate in your company?
These are questions that could interest you as a seller of a manufacturing company. Of course, you want to maximize the company’s value, and have a good starting point in the discussions with the buyer, but how can you find out how much you can ask for a share in your business?
Valuation of a manufacturing company
The valuation of a manufacturing company is a very important question that every manufacturing company owner might be interested in. There is the technical part as well as the art of a business valuation. There are a lot of factors that come into consideration during the valuation of a manufacturing company.
There are multiple valuation methods currently used in the M&A market. The DCF method (discounted cash-flow method) is sometimes used. More often, the way to value a company is to take industry multiples (mostly EBITDA) and use these on the company’s financials to come up with an estimated valuation. This is the most common method. Visit valuation methods page for your company for details about the main valuation methods.
The valuation depends significantly on subindustry. You will get different valuation multiple for metal manufacturing company, EMS company, CNC manufacturing company or HVAC manufacturing company.
Try our practical on-line manufacturing company valuation
We have developed an online tool, that can give you a basic idea of how much your manufacturing company is worth. If you want to get a preliminary-level indication of the value of your manufacturing business, please fill out the model below. You will need just the basic financials from the last two years.
As a result, you will get a rough indication of the enterprise value for your company.
Information about the value of your manufacturing company
Feel free to contact us if you have any questions concerning the value of your manufacturing company. A competent team of appraisers is ready to assist you. We have an industry expert, who will assist you with the company valuation. We are able to get a valuation for any manufacturing subindustry:
- Valuation of a metal manufacturing company
- Valuation of an aluminum manufacturing company
- Valuation of a machinery manufaturing company
- Valuation of a plastic and rubber manufacturer
- Valuation of a CNC manufacturing company
- Valuation of a HVAC manufacturing company
- Valuation of a wood, paper manufacturing company
- Valuation of a textile manufacturing company etc.
Valuations are a particularly important step in the M&A process. It is wise to gain as much knowledge about the process to have a better overview. For this reason, we advise you to read one of the pages below:
The process of selling a business
The process of buying a business
We are here to help you with setting a market value for your manufacturing company.
There is no guarantee that you will find a buyer for this valuation. However, we believe that for every company there is a buyer if the price is right.