Manufacturing business valuation is the technique of deriving a fair market value for a particular business. Whether you are interested in buying or selling a business, assessing its correct value is of utmost importance. Many factors go into valuating your manufacturing business, such as your asset turnover, your level of specialization relative to your competition and how diversified your customer locations are. As there are multiple factors going into assessing your business’ worth, there are also different ways in which you can get your company’s worth. You can use an external valuator to assess the fair price of a business or do it yourself.

Getting a business assessment is an invaluable tool to help you make sound business decisions now and in the future. Follow these steps to find your manufacturing business’ worth:

1. Use a variety of information resources to find the value of your manufacturing company’s sector.

2. Learn the tools of the trade with software to find your manufacturing business’ worth on your own time.

3. Consult a local business appraiser and benefit from face-to-face meetings.

Action Steps
The best contacts and resources to help you get it done

Make use of information gathered from industry reports to value a manufacturing business

Appraise a manufacturing business by consulting trade-specific financial reports and analyses. A general report will show how the overall economy is looking. A manufacturing-specific report will go into detail regarding the performance of the manufacturing sub-division you are in.

I recommend: The Brandow Company has many different levels of industry specific reports of all SIC sub-divisions of manufacturing businesses, such as concrete products. U.S. Business Reporter is a good resource to find industry-specific financial information such as the market overview and industry trends for the industrial goods sub-division.

Appraise a manufacturing business yourself using manufacturing business valuation software

Learn how to value a business by utilizing manufacturing business valuation software. This can be very helpful if you are ever looking to expand your business by opening up another location or if you need to update your current machinery. The factors and formulas created especially for valuating a manufacturing business are included, ensuring that you will get as accurate a report as you would if an experienced manufacturing business assessor did it.

I recommend: Haleo Corporation has a software solution called ValuAdder that uses market comparables for 400 industries, promising you an accurate report for your manufacturing company. The Express Business Valuation software from ValuSource uses market data and industry composition valuation methods to create a customized valuation report for your unique manufacturing business.

Consider a local professional with experience in your industry to purchase a manufacturing appraisal

When looking to value a manufacturing business, a local professional will have a better idea of your area's economy. This can work in your favor when you are looking to sell your business or purchase a new location, for example. These business valuation professionals will also be able to meet with you and go over the unique formulas and calculations that are necessary for a proper manufacturing business valuation.

I recommend: Halas and Associates is located in Charlotte, North Carolina and has many years of experience in providing accurate manufacturing business valuations to their customers. Nationwide Valuations has offices all over the country that will complete your manufacturing business valuation quickly and comprehensively.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  It is a good idea to get a manufacturing business valuation at least once a year to ensure the state of your business and financials are what you think they are.