Plastics and packaging businesses for sale

In plastics, the customer often owns the moulds used in production. Find out which tools the business owns and which belong to customers. Customer-owned tooling ties the customer to the business, but it can also be collected if the customer switches supplier. Ask how long the largest customers have been with the business and whether there are written supply agreements.

Packaging producers often run high volumes on thin margins. The margin depends on machine utilisation and on whether prices can be adjusted when raw materials and energy rise. Ask for the contribution margin per customer or product group, not only for the business as a whole.

Polymer granulate and energy are major costs. Check how price increases are handled in customer agreements. Demands for recycled content, documentation and certification are growing, especially for food-contact packaging. Ask which certifications the business holds and whether they are tied to the company. Check environmental permits as well, along with any requirements for handling waste and scrap.

Sitavo’s indicative range for manufacturing is 3–5 times EBITDA, cross-checked against 0.4–1 times revenue. Long-term agreements with price adjustment, own tooling and a broad customer base push the price up; high customer concentration and older machines pull it down.

• A tooling register: owned by the business or by the customer.
• Customer agreements with price adjustment for raw materials and energy.
• Contribution margin per customer or product group.
• Certifications and documentation customers require.
• Environmental permits and the condition of the machines.

See the general advice on buying manufacturing businesses, and use the price estimate to compare the asking price with the figures.