Manufacturing Advisory / Industry hub
Mergers & Acquisitions for Manufacturing Companies
Manufacturing acquisitions and divestitures carry heavy diligence weight: inventory valuation, customer concentration, equipment condition, supply chain and the working capital mechanics of the deal. Pagac helps manufacturers buy and sell with financial analysis and tax-focused deal structure, then supports the integration that makes an acquisition work afterward.
What does buy-side diligence cover in manufacturing?
The accuracy of inventory and work in process, the durability of customer relationships and concentration, equipment age and condition, supply chain reliability, real estate and leases, and the normalized earnings behind the asking price. Working capital targets are negotiated from analysis, not hope.
Manufacturing deals reward buyers who understand the business before the LOI, because the financial statements only tell part of the story.
What prepares a manufacturer to be sold?
Clean, normalized financials that show the true earnings; documented cost and inventory systems; customer and supplier concentration understood; and the real estate story settled. Sellers with this preparation negotiate from strength and close faster.
Pagac works on get-ready before the business is marketed, so the first conversation with a buyer starts from a credible position.
Why is structure so important in manufacturing deals?
Asset versus stock structure, the allocation of purchase price, and the handling of the building can change the tax outcome for buyer and seller alike. In a Pagac engagement, a manufacturer's acquisition was structured with the ownership of the building restructured through a separate company, keeping the property's economics distinct from the operating deal.
Structure is decided by the facts of each transaction and the applicable law, which is why it is analyzed, not templated.
Manufacturing M&A is diligence and structure as much as price: the companies that win understand the business before the LOI.
Manufacturing advisory
Your plant produces more than parts. It should produce usable financial intelligence.
From the Bloomfield Hills office of Pagac & Company, we serve manufacturing owners in Metro Detroit, across Michigan and across the country, in person and remotely.