Material Handling & Conveyor Systems
Sell your material handling business
Conveyor, material handling and logistics automation companies are riding the growth of distribution and e-commerce. Buyers pay for engineering talent, installed base and service revenue that keeps customers coming back.
Request a Confidential ValuationCall (877) 367-0977- Typical buyers
- Automation Strategics, Private Equity Platforms, Distribution Operators
- Common valuation basis
- Adjusted EBITDA for larger companies, SDE for owner-operated businesses
- What buyers study first
- Customers, margins, equipment and workforce
- Typical time to close
- Six to twelve months once marketed
Industry Overview
The market for material handling businesses
Material handling and conveyor system businesses design, build and install the equipment that moves products through warehouses, factories and distribution centers. Demand has grown with e-commerce, reshoring and automation, drawing interest from strategic acquirers and investors alike.
Buyers look at the mix of project revenue and recurring service, the size of the installed base, engineering and controls capability and the strength of relationships with integrators and end users. Companies with proprietary products or strong service contracts tend to command the most interest.
For owners of material handling businesses with at least $1 million in revenue, preparation makes the difference. Businesses that can show clean financials, a capable team and customers who stay tend to draw competing offers. We help you get there, then run a confidential process that reaches strategic, investor and individual buyers.
The Buyer Pool
Who is buying material handling businesses
Reaching several of these buyer groups at once is how a confidential process creates competition, and competition drives price and terms.
Automation Strategics
Integrators and equipment makers adding capabilities or territory.
Private Equity Platforms
Investors building logistics automation companies.
Distribution Operators
Companies bringing critical systems in-house.
Engineering Leaders
Experienced managers ready to own a technical business.
What Moves Your Number
What drives value
Two businesses with identical revenue can be worth very different amounts. These are the factors buyers in this sector actually underwrite.
Request a Confidential Valuation- Installed base that generates service and parts revenue
- Engineering, controls and software capability
- Mix of recurring service and project work
- Relationships with integrators and major end users
- Proprietary products or designs
- Project management and installation teams
Due Diligence
How buyers evaluate material handling businesses
Expect a serious buyer and their lender to look closely at each of these areas. Preparing them before you go to market shortens the process and protects your price.
Customers
Revenue by customer for three or more years, contract terms, how long relationships have lasted and who at your company holds them.
Equipment
Equipment lists with age, capability, condition and maintenance history, plus expected replacement needs.
Quality
Certifications, audit history, returns, warranty claims and customer scorecards.
Workforce
Headcount, tenure, wages, training and dependence on specific key people.
Financials
Monthly results, margins by customer or product, working capital and add-backs with support.
Facility & Environment
Lease or real estate plans, capacity for growth and any environmental history on the property.
Before You Go To Market
What quietly lowers your value
None of these are fatal, and every one is easier to address before a buyer finds it than after. That is the case for getting a valuation early rather than late.
- Heavy dependence on a few large projects
- Engineering knowledge concentrated in the owner
- Thin service revenue between projects
- Project margin erosion from cost overruns
Preparing To Sell
A practical timeline
Most owners who sell well start preparing a year or two before they go to market.
Build the foundation
24 to 12 months out
Get a professional opinion of value. Diversify customers where possible. Develop a production or operations manager. Document quality and production processes.
Prove it
12 to 6 months out
Organize equipment lists and maintenance records. Clean up monthly financials and add-backs. Address deferred maintenance. Review lease and real estate plans.
Run a confidential process
Going to market
Prepare a detailed offering memorandum. Reach strategic, investor and individual buyers. Share sensitive data in stages. Negotiate price, structure and transition.
Common Questions
Common questions from owners
What is my material handling business worth?
Buyers value it on documented earnings, then adjust for customer concentration, team depth, owner dependence, assets and market conditions. A confidential Opinion of Value gives you a realistic range based on those factors.
Does service revenue raise my value?
Yes. Service agreements and parts sales to an installed base are recurring and predictable, which buyers pay more for than one-time projects.
How do buyers evaluate project backlog?
They look at size, margins, customer quality and how dependably you have delivered similar projects on time and on budget.
How long does it take to sell?
Most well-prepared businesses take six to twelve months from going to market to closing, with preparation time beforehand.
Related Industries
Explore related industries
Client Reviews
Owners who have been where you are
Trevor was very attentive and consistent throughout the whole process and never gave up. When things got tough, he reassured us that was the process and it was all good in the end. We would highly recommend him and his team.
He didn’t waste any time starting on the task and was very detailed, confidential, experienced, very patient. I would recommend Trevor to anyone having large or small business.
Trevor was great to work with and did an excellent job guiding us through the sale of our business. As first-time sellers, the process was definitely stressful at times, but Trevor’s attentiveness and steady support made a huge difference.
Start Here
Know your number first
A confidential Opinion of Value tells you what your business is worth to a real buyer today and what would move that number. No cost, no obligation, and no one learns you asked.
Request a Confidential Valuation