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Small Manufacturing Business Valuation Formula:

Valuing Manufacturing Business: This is a very general business valuation formula or method for established small manufacturing businesses based on a percentage of annual gross revenues that can be used to help determine an approximate value and asking price to market an existing and general manufacturing business for sale.

Small Manufacturing Businesses (General): Approximately 65 to 75% of annual gross sales.

Broker Comments: There are many factors that determine the valuing of a manufacturing business (including industry category, equipment condition, client contracts, etc) and I would highly recommend getting a business valuation consultation from a professional business appraiser. However It’s been my experience as a Business Broker in Arizona that established and profitable small manufacturers are one of the most highly sought after "business for sale" categories. That’s one quick reason why they tend to support higher valuation multiples than many other small business categories.  Other reasons for popularity include the fact that manufacturing can be very profitable and the barrier to start one is comparatively high to other types of small businesses.

Need a business valuation or appraisal report for legal, personal, or selling purposes? Request a free & confidential preliminary business valuation consultation about your established manufacturing business here.