How to Value an Injection Molding Company
Many custom molding owner/operators ask us about valuation. The short answer is that there is not a hard-and-fast rule. The value of an injection molder, processor or other custom component manufacturer depends on a multitude of factors, including:
- Profitability, both current and historical
- Customers, including concentration
- End markets
- Growth opportunities and projections
- Management team
- Curb appeal of the plant, both exterior and interior
- Capacity utilization
- Equipment, including size/age/number of presses and auxiliary equipment
Transaction multiples have been creeping up since 2009 and now is a better time to sell a manufacturing business than at any point in the last 10 years. Even if your custom injection molding company has been breaking even or losing money in recent years, we have a valuation methodology that applies.
We have an excellent pulse on the market for molders and plastics processors of all sizes and would be happy to talk to you about how to value your company. Call us now at 413-584-2899 to learn more.