Manufacturing businesses for sale

A manufacturer is three things at once: the machines, the people who can run them and the customers who buy what comes out of them. The value rarely sits in the equipment alone. It sits in the ability to deliver to agreed quality and on time, and in customers who keep reordering.

Start with customer concentration. What share of revenue comes from the three largest customers, and are there written framework agreements or do they order job by job? A subcontractor living off one large industrial customer can be a good business, but the price has to reflect that risk. Then look at the order book: how many months of production are booked, and how has that changed over the past year?

Ask who knows what. Is it the owner who prices quotes, programmes the CNC machines and knows the customers, or is there a production manager and a salesperson who can carry the business forward? The more knowledge sits with the owner alone, the longer the transition period you should negotiate.

Manufacturers with employees are usually priced on EBITDA, with the owner’s work deducted at a market salary. Sitavo’s indicative range is 3–5 times EBITDA, cross-checked against 0.4–1 times annual revenue. Established customers, well-maintained machinery and documented processes push the price up; one dominant customer, worn equipment and owner dependence pull it down. These are general market ranges, not a valuation of a specific company — use Sitavo’s price estimate to see where a particular business lands.

• Revenue, contribution margin and EBITDA for the last three years.
• The largest customers’ share of revenue and the term of their agreements.
• Order book in months and in kroner.
• Capacity utilisation: can the machines produce more without new investment?
• Capital expenditure ahead: machines due for replacement and buildings that need maintenance.

• A machine list with age, condition, service agreements and any leasing or retention of title.
• Customer and framework agreements: term, notice and whether they can be assigned to a new owner.
• Supplier agreements for raw materials and components, including price adjustment clauses.
• Environmental permits: check which ones the business holds and whether they transfer on a change of ownership.
• Health and safety: the latest inspection by the Danish Working Environment Authority and any orders issued.
• Lease or property: term, rent and whether the premises suit future production.
• Certifications (such as ISO) that customers require, and whether they are tied to the company.

Sellers can place accounts, customer lists and machine lists in a data room behind an NDA, so you can review them before making an offer. See also the pre-purchase checklist.

In a share purchase, all contracts, permits and liabilities stay with the company, and customers often notice no change. In an asset purchase, you choose what to take over: machinery, stock, work in progress, drawings, tooling and customer agreements. In return, contracts and permits often have to be transferred or applied for again, which needs the cooperation of customers and authorities. Either way, employees transfer on their existing terms under Danish law, and you take over their seniority and the obligations towards them.

Agree how stock and work in progress are counted on the handover date, and how the seller will introduce you to key customers. Foreign buyers should plan for Danish employment contracts, Danish VAT and permits issued by Danish authorities, and use a local adviser for the purchase agreement. See also Sitavo’s handover guide.

Acquisitions of manufacturers are often financed with a mix of equity, bank debt and vendor financing, where the seller receives part of the price over time. The machinery can sometimes serve as security. Sitavo does not provide financing. Messaging sellers and making offers on Sitavo is free, and the deal workflow keeps the purchase agreement and handover in one place. The purchase price is paid directly from buyer to seller — Sitavo never holds the money. Read how payment works, and look at trading businesses for sale if you want stock and a dealer network rather than your own production.