Orange County Manufacturing Business Brokers Services

Our seller’s confidentiality is of the utmost importance to us as manufacturing business brokers. Our ads remain general with no specific information, with no detailed information indicating which company is for sale or where the company is located.

Buyers do not receive any confidential information unless they have signed a Confidentiality Agreement (NDA) and completed our Buyer Profile, which includes information about their financial situation, experience, and credit score.

It’s one thing to have your ad appear in front of thousands of people, but that has no value if they don’t click on it. We create appealing headlines and informative ad copy for manufacturing companies that entice prospective buyers to click for more information about your business. We also feature all of our ads to appear at the top of the business for sale websites rather than buried among the generic ads.

We send email blasts to our database of over 3,500 buyers, as well as the BizBuySell buyer database, which includes buyers who have demonstrated interest in manufacturing-related firms like yours.

We create a comprehensive Confidential Information Memorandum (CIM) for each company we represent. The CIM is your company’s prospectus and marketing pamphlet, which buyers get after signing the NDA and is crucial in their decision-making.

Our CIM includes:

• Synopsis of your services/products
• Company history
• Recast company information financial statements
• Staff roster (with names redacted)
• Equipment list
• SBA financing structure
• SBA Lender pre-approval letter

The initial meeting with prospective buyers is with us, and it is essentially a pre-screening to establish their abilities to run your business and, frankly, how interested and serious they are. Following the initial meeting, we plan a meeting with you, the buyer, and ourselves to review the business’s specifics.

Many of the fundamental issues are addressed during our initial meeting; nevertheless, buyers frequently ask these questions again because they like to hear the answers directly from the seller. Many of our initial buyer-seller interactions are held through Zoom, with the second meeting in person for purchasers who choose to move forward. Of course, after our meetings, the next step is to prepare an offer.

Our Purchase Agreements use the CABB (California Association of Business Brokers) Asset Purchase Agreement or Stock Purchase Agreements. Our firm has experience with both Asset Sales and Stock Sales (please keep in mind that an Asset Sale is a transaction type, not an asset liquidation – see our page Stock versus Asset Sale).

In our experience, a Stock Sale can be crucial for you since, in some circumstances, a Stock Sale may be required if the company has government contracts. The buyer purchases the corporation via a stock sale, and the corporate EIN and most essential contracts associated with the corporate entity stay intact.

We work with the buyer to develop the offer, which we then deliver for signature via PandaSign. When the buyer signs the offer, we go through it with you, explain the contents, and prepare a counteroffer if necessary.

Due Diligence is a vital phase in selling a manufacturing company. During Due Diligence, the buyer and, in many cases, their CPA will examine the company’s tax filings, profit and loss statements, bank statements, and other records to ensure that the revenue and earnings are accurate. The buyer will also examine the whole company to ensure that it is well-run and stable. We facilitate Due Diligence by aiding both the buyer and seller throughout the process and keeping it on track. Escrow is opened once Due Diligence has been completed, and the due diligence contingency has been eliminated.

We understand manufacturing businesses, their operations, the unique financial statements of manufacturing companies, and we are experienced in dealing with inventory, Work in Process, and A/R. Most importantly, we understand how to maximize the value of manufacturing enterprises and successfully sell them!

Your Manufacturing Business Broker must understand your company, speak your language, understand how to structure offers and transactions for a manufacturing business, plus know how to obtain SBA financing. Our team at Pacific Business Sales is led by Bill Grunau who has over 20 years experience selling manufacturing businesses and our firm uses SBA financing on over 90% of our transactions – which means more cash at closing for our sellers.

A critical component of selling manufacturing enterprises is verifying that the buyer is competent in running the company and, more importantly, concluding the transaction. Manufacturing firms are in high demand and very popular with buyers; as a result, we receive a large number of inquiries for manufacturing companies.

Pacific Business Sales is a Manufacturing Business Broker specializing in selling enterprises like yours. We carefully analyze prospective purchasers for financial qualifications and the abilities of the buyer to run the business. Buyers with little industry knowledge may make an offer, but based on our experience, they rarely conclude.

We look for buyers who have the capability and most likely to close, and who would run the manufacturing business with a successful outcome preserving your legacy and providing job security to your employees.

SBA financing is used in over 90% of our transactions, including SBA financing for manufacturing enterprises of all sizes and sorts. We only work with SBA PLP (Preferred Lender Program) banks, which have financed several SBA transactions for manufacturing companies with our firm. We are familiar with their underwriting rules and requirements, and we have had long-standing connections with these banks.

What is the significance of this to you as a seller? Simply put, CASH at the end! You do not have to finance the sale with a Seller Note if you use SBA financing. In reality, on several occasions, we have obtained SBA financing for up to 90% of the purchase price and with a 10% buyer down payment.

SBA financing will also cover the buyer’s acquisition of your A/R (accounts receivable). That means you’ll be compensated in cash at the end. Banks frequently require a minor Seller Note of 10% of the deal in addition to the SBA loan, and in this situation, you would receive 80% cash at closing.

We offer a free comprehensive Market Value Analysis of your business using the same methodology and professional valuation software used by SBA Valuation Analysts.

We have excellent comparable sales data for all types of manufacturing businesses sales directly from the SBA closed transaction database. With our Market Value Analysis, you can be confident that SBA financing will be approved at the value we recommend.