Ready to sell? Positioning your manufacturing business for a profitable exit

After years of building a successful business, selling may be the next major milestone. However, transitioning ownership is rarely simple. What worked for previous leadership may not easily translate to a new buyer, and demonstrating the company’s profitability and future potential requires transparent financials, accurate reporting, and well-documented processes.

At this stage, many company leaders recognize the value of an outside perspective. Preparing for due diligence, identifying value drivers, and crafting a compelling growth narrative all benefit from experienced guidance. That’s where our team steps in. We help manufacturers strengthen their financial and operational foundation and elevate their business profile, enhancing valuation and positioning the company as a strategic, investor-ready opportunity.

What Buyers Look for When Scouting the Market

When buyers evaluate a business, the first impression often comes from the financials. Clean, current statements, accurate tax filings, and a forecast that supports your valuation are essential. Strong, transparent records build confidence and support your valuation, while gaps or inconsistencies can raise doubts and stall or derail negotiations before they start.

Beyond the numbers, buyers look for operational strength. Addressing inefficiencies and modernizing systems signals stability and scalability. Reliable equipment, streamlined processes, and solid customer and supplier relationships all point to a business that can sustain profitability and continuity after the sale.

Legal and strategic details matter just as much. Contracts, leases, and intellectual property protections should be in order. Retaining key employees and aligning stakeholders on succession plans reduces risk for the buyer. Engaging a team of advisors early that includes tax, legal, and wealth planning can help you model the after-tax impact and choose the right sale strategy.

Case Study: A Growing Company Stuck in Financial Uncertainty

When it came time to sell a thriving business, the company’s leadership quickly realized that a lack of financial structure was a major obstacle. They had been operating through a single bank account, with no visibility into profitability by segment. Without internal financial leadership and relying solely on a CPA for tax filings, they lacked the insight needed to assess their financial health. When they approached an investment bank to facilitate the sale, they were told to clean up their financials before going to market.

The investment bank referred the company to Elliott Davis for a full financial transformation. Our team brought together specialists in finance transformation, accounting, and transaction advisory, all working together under a single point of contact to facilitate the process. We restructured the accounting system by segment, established month-end close processes, and built a comprehensive reporting package that included multi-year financials and key performance indicators (KPIs). Additionally, we conducted sell-side due diligence, standardized revenue and cost of goods sold (COGS), and identified adjustments to reflect the company’s true earnings potential.

To position the business for sale, we benchmarked profitability, highlighted high-margin areas attractive to private equity, and integrated KPIs into reporting to demonstrate growth potential. Throughout the engagement, we provided hands-on support and strategic guidance. After months of focused effort, the company moved from a financial blind spot to a structured, transparent, and highly marketable business, ready for sale.

For a checklist on what to do before you go to market, check out our related article.

We Can Help

At Elliott Davis, we help business owners prepare for a successful exit well before the sale begins by cleaning up financials, planning for taxes, targeting buyers, and building a transition strategy. Our team identifies risks, recommends value-driving initiatives, aligns the deal with your financial goals, and equips you to handle buyer objections and diligence.

Not sure how your entity type impacts a sale? Understanding the tax consequences of a sale is key to structuring the deal correctly. We break it down here: C corporation | S corporation | partnership

Selling your business is a once-in-a-lifetime decision. Let us help you do it right with a plan built for success.

The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.