Manufacturing & Industrial · Seller readiness
Selling a Packaging Manufacturing business
Published · Reviewed by The Diligence Standard Team · Updated
An owner preparing to sell a Packaging Manufacturing business should document the operating drivers buyers will test, normalize the owner’s role and earnings, and surface capital, customer, people and transferability issues while there is still time to address them.
How the business works
Customer programs, substrate costs, machine utilization, setup/waste, quality and equipment CapEx determine value.
Issues to resolve
- Customer concentration can become buyer leverage if it is not documented, mitigated or priced before launch
- Input cost volatility should be quantified before a buyer uses it to reframe value or terms
- Equipment CapEx needs a clear transfer, retention or mitigation plan before diligence begins
- The business-specific drivers of packaging manufacturing value are not documented well enough for buyer diligence
- Owner labor and relationship dependence are not separated clearly from transferable enterprise earnings
- Missing or inconsistent operating evidence gives buyers avoidable negotiating leverage
Evidence to request and reconcile
- Customer/product margins
- Machine hours
- Waste reports
- Equipment
- Customer contracts
- Inventory/AR
Decision questions
- Which programs recur?
- What waste is normal?
- What equipment investment is due?
- How concentrated are customers?
- Can pricing pass through material changes?