Companies that "make something" are always in demand, and U.S. manufacturing is growing, despite the decades long march towards offshore production. Some of the most popular categories include:
The manufacturing sector is resilient, and less affected by broader market trends. Asking prices and valuations have been steady through the pandemic years and continually command an average valuation multiple of 3 times seller earnings.
Whether you are considering buying or selling a manufacturing business, having some context is important for evaluating individual businesses relative to the market. To that end, we have aggregated business for sale listing data of manufacturing businesses, and surface key financial metrics and valuation multiples based on asking prices.
Market Overview
Number of Businesses Analyzed
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2,194
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Median Asking Price
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$628,317
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Median Reported Revenue
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$939,301
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Median Reported Earnings
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$213,000
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Financials based on businesses that listed an asking price, annual revenue, and seller's discretionary earnings.
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Manufacturing Business Valuation Multiples
Range
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Revenue
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Earnings (SDE)
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Lower Quartile
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0.50
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2.40
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Median
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0.75
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3.12
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Upper Quartile
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1.10
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4.23
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Revenue and earnings multiples based on reported revenue, seller's discretionary earnings, and asking price.
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Read the Report:
Manufacturing Business Valuation Benchmarks
FAQs
How much does it cost to buy a manufacturing business?
Prices vary depending on the size of the business listed, but the median asking price for a manufacturing business is $628,317.
How much do manufacturing business owners earn?
Manufacturing business owners report median annual sales of $939,301 and annual owner earnings of $213,000. These figures are based on businesses that have listed their annual revenue and seller's discretionary earnings.
How do I value a manufacturing business?
Valuing a manufacturing business involves considering several factors, including annual sales, profit, growth (or decline) trends, and demographic trends of the local market. Brokers, business owners, and business buyers will typically rely on valuation multiples to gauge business value relative to similar businesses in the market. Revenue multiples among manufacturing businesses listed for sale range from 0.50 to 1.10, with the median at 0.75. Earnings multiples range from 2.40 to 4.23, with the median at 3.12. These values suggest a typical manufacturing business in the U.S. may sell for around 0.75 times its annual revenue, and 3.12 times its annual owner’s earnings.
More for Business Buyers:
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More for Business Sellers:
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Find a Business Broker
How to Sell Your Manufacturing Business
Get Local Business Valuation Data