Purchasing a Business - where to find businesses for sale? Engineering/Manufacturing

[Jamie13]

Hi all,

I've seen lots of info online about buying businesses where the owners are retiring, and seen a few genuine examples where this worked really well (2 friends did this), however they generally worked at the business first. Where do you find these sorts of businesses for sale?! A while ago I was looking at purchasing a coffee shop and most of the ones offered by business brokers were terrible businesses/inflated figures etc.

A bit of background to give some context.. I studied mechanical engineering at university and loved learning about it. I loved the practical side as well as theory. After uni I decided to chase the money and get a job in IT. I've been working in IT for a bank for 5 years and haven't enjoyed it! But got a lot of experience implementing systems and helping businesses to be more "digital"/online.

A few years ago I opened a coffee van on the side. I didn't know anything about coffee (or love coffee), but had always wanted to run a business and thought it was good margins. It was really successful for a tiny business and I had 8 employees and loved the business side of it.

With the van and the 9-5, I've been working long hours 7 days a week and have managed to save up some cash. I'm trying to decide what to do next - ideally something that combines my love of business with engineering/manufacturing.

I'm looking for an Engineering/Manufacturing business but struggling to find one. Has anyone done something similar? Any ideas on where to look? Or is it more a case of networking/reaching out to people?

 

[Lisa Thomas]

The agents we use have databases for interested parties. DM me for details.

 

[boxlot]

I sold my business in Rightbiz, worth checking out.

 

[Jamie13]

Thanks Lisa! Will drop you a message.

And thank you! I do look on Rightbiz, but when I was looking at coffee shops I would find the best ones through friends/word of mouth. Will keep searching!

 

[AndEde]

Hi,

I client of mine has a company that assists people like you with buying businesses, which includes sourcing the business, reviewing the financials and negotiating the transaction. Let me know if you would like to be in touch.

 

[Jamie13]

Hi, yes that would be great! Will send you a message. Thank you

 

[HFE Signs]

Have a look here: https://www.kbscorporate.com/

 

[Socio South West]

Businesses for Sale
is where a large percentage of businesses are advertised. I have bought and sold businesses through this site.

On OP's comment about inflated prices - yes, I agree.... but a business is only worth what someone will pay for it.
Ignore the asking prices. Go through the accounts and business with a toothcomb - especially the lease if there is one involved - then do your budgets and work out what you want to pay for the business.
That should be your offer, and don't be scared to dig your heels in on price, especially if the business has been on the market more than a couple of months.

 

[Jamie13]

is where a large percentage of businesses are advertised. I have bought and sold businesses through this site.

On OP's comment about inflated prices - yes, I agree.... but a business is only worth what someone will pay for it.
Ignore the asking prices. Go through the accounts and business with a toothcomb - especially the lease if there is one involved - then do your budgets and work out what you want to pay for the business.
That should be your offer, and don't be scared to dig your heels in on price, especially if the business has been on the market more than a couple of months.

Thank you - I really appreciate this! I'm very new to this so not familiar with the process/what's acceptable etc.

 

[KeithGreen]

There are a number of ways you could approach the acquisition of a company. Some of the online platforms have already been identified on here but here is a non-exhaustive list.
o www.businessesforsale.com
o www.daltonsbusiness.com
o www.rightbiz.co.uk
o www.business-sale.co.uk
www.dealopportunities.co.uk
www.SMEmarket.co.uk

I believe some of these require a subscription.

The other route is to pro-actively search yourself, either through an intermediary (I know a good one), or by identifying target business(es) and contacting them. A well-constructed letter is the best initial method as this is the most discrete approach.

 

[Will.Lu]

Maybe some inverter generators? As all I know, they are very popular for camping

 

[DoolallyTap]

It was really successful for a tiny business and I had 8 employees - what do you mean 'was'?
Then you say - With the van and the 9-5, -Is it still operating? What do 8 staff do? are they all properly employed, if it generates a good profit what's wrong with 2- 3 or 100 vans>
How much do you think an active, engineering business will cost to buy?

 

[Jamie13]

There are a number of ways you could approach the acquisition of a company. Some of the online platforms have already been identified on here but here is a non-exhaustive list.


I believe some of these require a subscription.

The other route is to pro-actively search yourself, either through an intermediary (I know a good one), or by identifying target business(es) and contacting them. A well-constructed letter is the best initial method as this is the most discrete approach.

Thank you!

 

[Jamie13]

It was really successful for a tiny business and I had 8 employees - what do you mean 'was'?
Then you say - With the van and the 9-5, -Is it still operating? What do 8 staff do? are they all properly employed, if it generates a good profit what's wrong with 2- 3 or 100 vans>
How much do you think an active, engineering business will cost to buy?

It was seasonal - only run in summer. It generated great profit, but vans are not really feasible to scale because you have no storage, limited fridge space, most appliances have to be more domestic type appliances due to power usage and space limitations so break more, it's very difficult to find a good pitch, can't receive deliveries - I could go on! I learnt a huge amount from the business but one of my most important lessons was that hospitality in general is not a great area to go into unless you are very passionate about it. Staff were properly employed but on 0 hour contracts over the summer (mostly students etc.).

I want this next business to be on a much larger scale and I expect it will cost somewhere in the region of £250-750k+ to purchase (dependant on so many factors)