Buying a manufacturing business

Buying a manufacturing business

Types of business in manufacturing

The days of the UK being reliant on heavy industry are over.

Small businesses abound in all kinds of manufacturing, explore the range and we’ll sort your funding.

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Finding the right business – for you

With so many options, how do you make the right choice and go into the right sector and the right business within that sector?

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Buy a business or start one up?

There are many considerations and the potential returns of a start up are not inconsiderable.

Is it worth the risk?

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Types of business in manufacturing

Once you’ve identified the perfect business to buy, what about the funding?

That’s where Acorn finance will help.

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Getting the business purchase funded

Your business acquisition – Funded!
Funding a business purchase

 

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

Buy a business or start your own?
What’s best? 

This is a tough choice sometimes and the lines between can be extremely blurred so it’s important to consider the alternatives carefully yourself, nobody can tell you which will be better for you.

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.

Choosing the right business
Skills, experience & opportunity

The right business for one person will look very different to the next – there are many considerations and there’s much research to be done before diving in;

Skills >>

Experience >>

<< Sector

<< Profitability

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.

  1. Does the business (and the sector) have a future in continuing to manufacture?
  2. Is the product competitive?
  3. Who are the customers? Are they varied or is there reliance on a small number of buyers? Can the client base be increased?
  4. Who are the suppliers of the business? Are there any potential threats to continued operation if one or more were lost?
  5. What do the capital needs of the business look like for the next few years?
  6. Are there technological, environmental, political or economic threats to the business or the sector?
  7. Is it feasible to broaden the product offering or to niche into specialised (and more profitable) markets?

Business types in manufacturing

Types of manufacturing business
Types of manufacturing business

When the average person thinks of manufacturing they will typically think of large factories turning out cars, steel or mobile phones.  They will also tell you that there’s barely any manufacturing left in the UK, everything has been “offshored” to China, Eastern Europe or elsewhere.

Selection and analysis

Finding the right business to purchase is important, understanding your skill set and how you’re going to operate the business will help lead you towards your “why”.

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.

For more about finding the right business for you – click here.

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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.

Factsbefore we start it’s important for all the business facts, financials and background to be available.

Understandingonly 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.

Executeby 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.