Sell Your Manufacturing, Engineering or Industrial Business in Melbourne

Industrial businesses are one of Vic Brokers' biggest specialties. Since 2017 we've sold manufacturers, engineering and fabrication workshops, construction and trade businesses, recyclers, wholesalers and transport operators across Melbourne and regional Victoria, including several sold together with their freehold premises. Industrial buyers look closely at equipment, customers and people, and we prepare your business with that in mind.

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Industrial businesses we've sold

A selection of manufacturing and industrial businesses Vic Brokers has sold:

CNC machining, precision engineering and tool manufacturing
Sheet metal, steel fabrication, welding and laser cutting
Injection moulding and plastics manufacturing
Kitchen, cabinet, door and furniture manufacturers
Insulation, roofing, air conditioning and commercial construction businesses
Timber yards and fencing suppliers
Scrap metal recycling, transfer stations and skip bin hire
Wholesalers and suppliers of industrial products and equipment
Removalists, container transport and storage businesses

What buyers look for in an industrial business

Buyers of industrial businesses are often competitors expanding their capacity, trade professionals ready to run their own operation, or investors wanting a business with a manager in place. They usually focus on:

Customer base. A broad spread of repeat customers, ideally with ongoing contracts, is worth more than reliance on one or two big accounts.
Plant and equipment. Age, condition and maintenance records of the machinery, and whether any of it is leased or financed.
Skilled staff. Who does the skilled work, how long they've been there, and whether key people are likely to stay after the sale.
Systems and documentation. Quoting, job costing, quality processes and safety systems that don't live only in the owner's head.
Premises. Lease security, zoning that suits the use, power supply and room to grow, or the chance to buy the freehold.
Order book. Work already booked in gives buyers confidence in the first months of ownership.

What affects the value of an industrial business

Industrial businesses are usually valued on their adjusted net profit, with the plant and equipment playing a bigger part than in most industries. Where a business lands in its range depends on:

Customer concentration. If one customer makes up a large share of revenue, buyers see risk and price it in.
Owner reliance. A business where the owner quotes every job, runs the machines and holds the customer relationships is worth less than one with a supervisor and sales support in place.
Equipment. Modern, well-maintained machinery supports the price. Equipment near the end of its life reduces it.
Contracts. Ongoing supply, maintenance or council contracts add value, especially if they can be transferred to the new owner.
Licences and accreditations. Trade, building, fire-rating or environmental licences can add value, but check whether they belong to the business or to an individual.
Freehold. Selling the property with the business can widen your pool of buyers. It can also be leased back to the new owner.

Things to sort out before selling

Equipment register. List each machine with its age, condition and service history, and note anything under finance or lease.
Customer and contract details. Summarise major customers, contract terms and whether contracts can be assigned to a buyer.
Licences. Check which licences and accreditations the business holds, and which are held personally by you or your staff. Individual licences don't pass to a buyer automatically.
Environmental and safety records. Buyers will ask about EPA permissions, waste handling and workplace safety, particularly for recycling and fabrication businesses.
Staff. Have employment records, awards or agreements, and leave balances up to date.
Premises. Talk to your landlord early about the lease term and transfer, or decide whether you'll sell or lease the freehold.

How we sell industrial businesses confidentially

In industrial markets, word of a sale can reach competitors, customers and staff quickly. We advertise without naming your business, screen buyers (including checking whether they're a competitor) before they see any details, and require a signed confidentiality agreement before releasing figures or your location. Site inspections are arranged to avoid disrupting production.

Frequently asked questions

How long does it take to sell a manufacturing business?

Most businesses receive an acceptable offer within 2 to 6 months of going to market. Industrial sales can take a little longer to settle, because buyers often inspect equipment in detail and may need finance or landlord approval.

Should I sell my business with the freehold or keep the property?

Either can work. Selling both can attract buyers who want to own their premises, while keeping the property and leasing it to the buyer gives you ongoing rental income. We'll talk through both options at the appraisal.

What if a large part of my revenue comes from one customer?

It doesn't stop a sale, but buyers will see it as a risk. Having a written contract with that customer, and showing a long relationship, helps. So does growing other customers before you sell.

Are my plant and equipment included in the price?

Usually yes. The price normally covers goodwill and the plant and equipment needed to run the business. Stock and work in progress are usually valued separately at settlement.

Can you sell a business to a competitor without them finding out who we are too early?

Yes. Competitors are often the best buyers, but we screen them carefully and only release identifying details once they've signed a confidentiality agreement and shown they're a genuine buyer.

Thinking of selling your industrial business?

Start with a free, confidential appraisal. You'll get a realistic price range and a clear picture of what's helping or holding back your business's value.

Call (03) 9918 6739 or request your free appraisal. You can also read about selling your business with Vic Brokers.