Buying a manufacturing business
Getting the business purchase funded
Funding your acquisition through an independent broker like Acorn finance has a key advantage when purchasing a business in the manufacturing sector, the ability to mix and match the best products from different providers.
Understanding the needs of the business generally and of you as a purchaser will enable your Acorn finance funding specialist to create a tailor made funding solution to fund the purchase and ongoing operation of your business.
Negotiations are much easier if you understand what is affordable! Acorn finance will be able to discuss your application with a number of lenders so that you understand the funding while you deal with the purchase.
Delivering your funding is part of our guarantee, we’ll ensure you understand all the fees and costs, how much the repayments will be and how long you’ll be tied in.
Start-up or buy an existing business
The pros and cons of buying a manufacturing business or starting your own up are broadly similar to those in any other sector but magnified, especially in manufacturing sectors which are especially reliant on one or more of the following;
- Specialist or expensive equipment or plant
- A small number of important customers
- Specialist or rare suppliers
- A brand name
If none of these applies then there’s every chance that you could create your own start-up business and go into competition with target business rather than buying it – take a look at our start-up funding guide here.
The right business – for you.
Simply – your existing skill set will help you to select the sector your target business should be in, your previous experience will allow you to select a business which is in need of turnaround or one which is already profitable.
As with any business, there are other considerations. Here’s the Acorn Finance key 7 questions to ask of the business you’re considering buying.
- Does the business (and the sector) have a future in continuing to manufacture?
- Is the product competitive?
- Who are the customers? Are they varied or is there reliance on a small number of buyers? Can the client base be increased?
- Who are the suppliers of the business? Are there any potential threats to continued operation if one or more were lost?
- What do the capital needs of the business look like for the next few years?
- Are there technological, environmental, political or economic threats to the business or the sector?
- Is it feasible to broaden the product offering or to niche into specialised (and more profitable) markets?
Business types in manufacturing
The truth couldn’t be more different, manufacturing is thriving across the UK but takes on a very different shape to that traditional heavy industry view. Looking through businesses for sale right now gives a great insight into what types of manufacturing is still out there and is doing well.
The range of business is as great as it’s ever been but shows new tastes from consumers as well as skills and technology better suited to the UK than an offshore supplier;
- Highly skilled steel fabrication
- Lab equipment
- Clothing manufacture
- Baby products
- Organic skincare
Whatever your skills and experience there’s bound to be a business out there to suit.
The Acorn.finance FUNDED process
To ensure every Acorn.finance customer gets the same access to the very best funding sources we’ve developed a 6 step sequence that we’ll work through with you to ensure you get the funding you need, for both now and for the future of your business.
Facts – before we start it’s important for all the business facts, financials and background to be available.
Understanding – only by understanding you and your business will the solution be the best for your growth plan.
Needs – by fully understanding your plans we’ll work with funders who will meet your needs both now and for the future.
Discuss – working with our panel of the best funders in the market we’ll work through your case with them to ensure they understand your needs in detail.
Execute – by using Acorn.finance to arrange your funding you save hours of time spent on calls and applications. We work with the finance company to streamline every finance case.
Deliver – we work hard with all the professionals involved to ensure you get the funding you need, in good time.