Likely Buyers
- Larger molder or compounderWants more presses, more floor space and customers it does not serve today.
- Private equity backed platformLooks for steady earnings it can combine with other plastics shops under one roof.
- Experienced plant manager with SBA backingKnows the process and needs a shop that runs without the owner on the floor.
What the buyer is paying for
Buyers price a molder on the cash left after one working owner is paid, then apply a multiple. Most Main Street companies change hands at about two to three times that cash flow.
Shops with a plant manager in place and larger profits are often priced on EBITDA instead, with a market rate manager deducted first.
Where the risk sits
Presses wear out, and buyers know it. Many will accept only part of your depreciation as an add back, since someone has to pay for repairs, new screws and barrels, and eventually new machines.
Tooling is the next question. Molds that belong to your customers are not assets you can sell, and molds you own should be listed with age, cycle counts and condition.
Resin prices move, so buyers look at whether you pass increases to customers on a schedule or absorb them. A shop that eats price swings shows thinner profit in a bad year.
Customers and contracts
If your top one to three accounts make up more than about fifteen to twenty percent of sales, expect a discount near that share or a buyer who walks. Spreading work across industries helps.
Buyers also check whether orders come from purchase orders, blanket agreements or handshakes. Written terms make revenue easier to believe.
People and plant
Setup technicians and quality staff are hard to replace. A buyer wants to know who runs the first shift, who inspects parts and whether anyone is likely to leave when the owner does.
If you own the building, the real estate may deserve its own value and its own plan, apart from the shop.
Before you list
- Three years of statements that tie to your tax returns
- A press and mold list with age, tonnage and condition
- Sales by customer for each year
- Your lease, or your deed and any mortgage
Read how add backs are judged, then how customer concentration hits price. When you want a number, request a price opinion.