What a buyer checks in a molding company
| Press utilization | How many hours each press runs per week, by tonnage, and how much room there is to add work without new machines. |
|---|---|
| Molds on the floor | Which molds belong to customers, which to you, and whether ownership is written into each agreement. |
| Resin pass through | Whether contracts let you raise prices when resin costs climb, or whether you eat the swings. |
| Quality system | Certifications, audit results and scrap rates, since losing an approval can lose a customer. |
Utilization Tells the Story
A buyer wants to know how full your presses are. A shop running two shifts with presses free on the third has room to grow. A shop at capacity may need a new press soon, and buyers will factor that cost into the price.
Show press hours by machine over the last two or three years. It is the easiest way to prove the business is steady.
Who Owns the Molds
Most production molds belong to the customer. They sit in your racks, but they are not yours to sell. Buyers check this closely so they don't pay for something they won't own.
Keep a list of every mold, its owner and its condition. Molds you built and own on proprietary products are real assets and should be counted.
Material Costs and Margins
Resin prices move. Buyers look at whether your quotes and long term agreements let you pass increases through, and how fast. Margins that dropped every time resin climbed tell a buyer the shop has no pricing power.
- Price adjustment clauses in your bigger agreements
- How quotes handle material, regrind and color
- Gross margin by customer, not just overall
Customers and Approvals
Molders in this area often supply tier one and tier two auto suppliers, along with medical, appliance and consumer customers. The more varied the list, the safer a buyer feels.
Your quality certifications and approved supplier status may need notice or review when ownership changes. Ask your attorney how your key customer agreements handle a sale.
Pricing the Company
Smaller molders usually sell on owner cash flow; larger ones with managers sell on EBITDA. A broker will recast your earnings and explain where you fit. The checks that follow an offer are on our due diligence page.
Staff who move to the buyer bring the unemployment account question with them. Our guide to the UIA 1027 notice explains what you owe the buyer before the transfer.
Curious what your company could sell for? Send the short form or call (313) 555-0152.