Buying a manufacturing business
Manufacturing businesses can offer asset backing and recurring customers, but buyers must inspect equipment, contracts and working capital carefully.
Machinery and maintenance
Ask for an equipment register, age, finance status, maintenance history and replacement cost. Have critical machines inspected by someone independent.
Customers and order book
Customer concentration is a major risk. Confirm contract length, repeat ordering patterns and whether key customers will stay after ownership changes.
Stock and work in progress
Agree how raw materials, finished goods and work in progress will be counted and valued at handover. Slow moving stock should not be priced at full cost.
Compliance and safety
Review health and safety, environmental approvals, equipment certificates and insurance conditions. Compliance gaps can become expensive after takeover.
Working capital
Manufacturing can consume cash through stock, debtors and supplier terms. Build working capital into your funding plan, not just the purchase price.
Next step
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This guide is general information, not legal, tax, accounting, finance or investment advice.