Manufacturing Business Brokers

Mergers & Acquisitions and Business Brokerage Services for the Manufacturing Industry

Raincatcher’s Partners and Managing Directors have completed over a billion in combined transactions throughout their careers. We offer an investment banking style auction process to lower middle market companies.

Our award-winning team is largely comprised of former small business owners, public accountants, and middle-market investment bankers. Our clients have trusted us to sell over $500M in small and mid-sized businesses.

How We Work With Our Manufacturing Clients

If you’re interviewing M&A advisors and business brokers in search of someone who understands your manufacturing business, has a strong buyer list of investors (including family offices, private equity funds, search funds and entrepreneurs), and has proven experience in closing deals over $100m, then you’re in the right spot.

While we call ourselves industry agnostic, we avoid a handful of industries, such as reimbursement-related healthcare, energy, life sciences, etc. Likewise, our team is very well-versed in a handful of industries. This list includes manufacturing, SaaS, tech, construction and industrials. If you would like to learn more about how manufacturing companies are valued and sold, have a look at our manufacturing business valuation article.

Collectively, our team has completed well over $100m in transactions for U.S.-based manufacturing companies, primarily utilizing our sell-side auction process. We specially designed this process to maximize proceeds for lower middle-market companies.

Valuation Specifics for Manufacturing Businesses

Manufacturing companies have been in increasing demand from private equity groups and other business buyers. Additionally, this industry is growing as many companies are bringing their manufacturing capabilities back stateside as opposed to relying on cheaper, over-seas labor. Manufacturing technology has also minimized the cost of creating components and allowed for US based, lights-off facilities to increase in number.

There are a number of publicly traded manufacturing companies that look to grow through acquisition. This not only allows them to increase their headcount of skilled laborers, but it also increases their manufacturing production capacity and catalog of products. Manufacturing business buyers look for their acquisition targets to meet as many of the below qualities as possible:

  • Highly automated. Ideally lights off
  • Long-run contracts more than job shop.
  • Barriers to entry. This could be contractual, capabilities that your facility has, certifications that you’ve acquired, or other.
  • Manufacturing a component with an enduring need and is not cyclical
  • A quality facility that has invested in state-of-the-art manufacturing technology
  • A strong team in place
  • Strong margin (20%+ ideally), proving that your products are not commoditized.
The Raincatcher Process

Our Specialized M&A Advisory Auction Process for Manufacturing Companies

Our M&A Process is Specifically Designed to Maximize Transaction Proceeds and Terms for our Clients with $500k+ in Annual EBITDA

Sell-side due diligence

Due diligence is traditionally done by business buyers and not business brokers. However, our comprehensive sell-side process includes a diligence process before we bring a business to market. Learn more about diligence on our M&A consulting post.

Our comprehensive diligence process is designed to drive the highest value for the business owner as buyers know that there won’t be any skeletons in the closet once they submit an offer and start spending money on legal and financial diligence.

Specially designed brokerage or M&A auction process

Depending on the size of your business and industry your company operates in, we may recommend a traditional brokerage process with a listing price. Or, a competitive auction process with buyers submitting the price and terms for negotiation. 

Our buyer list is comprehensive and will be tailored to include (or exclude) and participants in your industry who may make great strategic buyers or who you want to avoid knowing the business is on the market.

Short-listing finalists

It isn’t uncommon for strong, sizable companies to get 5+ indications of interest (soft offers). We’ll then validate those buyer groups, attend dinners where they meet out clients, prepare further data on the business and negotiate the deal terms that buyers will propose in their final offer.

Negotiate LOI terms and facilitate diligence

Once LOI’s have been received from potential buyers we work with our clients to select the most attractive offer before executing the exclusive LOI.

It’s common for diligence to take 60-90 days before closing. This requires a significant time commitment from all parties. Additionally, final deal points are negotiated and contested during this period.

More Manufacturing Resources

If you’re interested in selling your manufacturing business, we’d suggest you start by setting up a consultation with us and reading our selling your manufacturing company article.

What Our Clients Have to Say

Request A Consultation

If you’re a business owner and you are currently entertaining selling your business in the coming years, we welcome the opportunity to get introduced to discuss our M&A, Exit planning and Advisory services.