Manufacturing and industry businesses in Alicante: buying, selling and valuation

When you buy a factory you are buying production capacity, and the first thing reviewed is the real state of that capacity: the age of the machinery, investments made and pending, documented maintenance and whether the plant could produce more without major outlays. A profit that is only sustained by postponing necessary investment is discounted as soon as the buyer visits the premises.

The portfolio of industrial customers is scrutinised closely. In activities that work as suppliers to other businesses, for example footwear components, packaging or metal parts, a few customers may account for a large share of sales. If that is your case, document how long those relationships have lasted, whether there are framework contracts or open orders, and the diversification you have achieved in recent years.

Also relevant are own brand versus manufacturing for third parties, exports and to which markets, the approvals or certifications certain customers require and the technical know-how of the team: supervisors, production managers or technicians who know how to set up the machines. If that know-how exists only in the owner's head, the buyer will ask for a long transition period.

Finally, the property: whether the industrial unit is owned or rented, the length of the lease, whether it can be separated from the sale of the business and whether the activity licences and environmental permits are in order for current production. Having this verified before you start prevents a planning issue from holding up a transaction that has already been agreed.