Recently our director Dru Morgan caught up with Brisbane Business Broker Belinda Packer to discuss best practices and key considerations when selling a manufacturing business in Australia.
Their conversation covered a number of points, including the a few key takeaways listed below:
Sale Price Maximisation – Licenses
A recent manufacturing deal went smoothly for Belinda as a key license holder was happy to stay with the business after the sale. This is an important consideration for prospective buyers. If you’re an owner who wants to exit who holds critical licenses, it is worthwhile to consider how you would mitigate this risk for buyers. You could either plan ahead and get a different license holder in place before going to market who will stay with the business after a sale or offer an extended handover period to maximise buyer interest.
Sale Price Maximisation – Management Team
Belinda commented that her most successful manufacturing listings had a management team in place outside of the exiting owner/s. This made the businesses more attractive to a bigger pool of acquirers driving up demand and therefore the settlement price.
Belinda & Dru both commented that the most common buyer type they see in manufacturing is industry buyers. Other profitable Australian manufacturing operations who are looking to increase their revenue, profit and market share through either a horizontal or a vertical acquisition.
If you own a manufacturing business and would like to have a discussion about your business, please don’t hesitate to schedule a chat with us.