Manufacturing Equipment Appraisal

As part of the valuation process, it's typical to have a qualified appraiser perform an appraisal of the manufacturing equipment.  Machinery and equipment often comprise a significant portion of the value of a manufacturing company, and capital equipment is usually financeable for lending purposes.

Trends in Manufacturing

For valuation, certain types of manufacturing businesses can typically command higher EBITDA multiples than others, as they're considered more viable than others.  For example, given the large population of Baby Boomers and their growing need for healthcare, medical device manufacturing remains a hot commodity, now and for the foreseeable future.  This robust activity in the medical  products industry is driven by growing demand, high margins, and the need for strict quality control.  Certain medical devices are manufactured in the U.S., because users aren't willing to risk quality control issues.  This increases the value of the business, due to its defensible position.

Other high value manufacturing niches include emerging technology and aerospace applications.

Although complex, manufacturing businesses remain in demand, as illustrated by a manufacturing client we represent in Denver.  This business currently has multiple offers in place from a diversified mix of strategic and financial buyers.