Selling a business can be a stressful thing to say the least. Valuation, finding buyers, untangling ownership and paperwork are serious tasks that leave a lot of sellers feeling stranded. This is even more so a problem with the complexity of a manufacturing business.
Now, skilled labor, materials, tools, machines, facilities, and shop floor knowledge are involved. Those complexities make manufacturing experience an important consideration when choosing a broker. Praxis Business Brokers helps owners navigate that process, connecting sellers with buyers prepared to take over the operation.
“Selling a business is a marathon, not a sprint. On average, 12 to 14 months, we’re going to be working together,” said Ryan Johnson, owner of Praxis Business Brokers.
Founded in 2005, Praxis serves businesses across Michigan, providing an array of services including business valuations, confidential marketing, buyer screening and support through negotiations and closing.
Praxis’s experience includes transactions across manufacturing and the businesses that support it. Its more recently completed deals include Spindel Electronics, which engineers and manufactures high-frequency and spindle drives; JH Miller, a commercial powder-coating and furniture products company; and Michigan Air Compressor Technologies, an air compressor sales and service business.
“Manufacturing is a people-centric business. If you don’t have good staff that are well trained in what they’re doing, it doesn’t translate to a positive value,” Johnson said.
Awareness Is the Hardest Part
For some manufacturing owners, the first hurdle is recognizing that selling is an option. Without a family member or employee ready to take over, owners may assume closing the business is their only remaining path.
“I don’t think they’re really thinking about, can I sell the business? I think they’re looking at, is there anybody here that can take over? If not, what do I do to liquidate it?” Johnson said.
Praxis works to expand that search beyond the people an owner already knows.
The firm’s online business listings give prospective buyers a starting point, with descriptions of available companies, asking prices and, where disclosed, cash flow figures. Buyers can filter opportunities by price, industry and sale status, including categories for manufacturing and machine shops. Listings describe the operation without necessarily naming the company and provide a broker’s contact information for those interested in learning more.
Assessing the Value of a Manufacturing Business
A manufacturer’s value depends partly on how well it can function after its owner leaves. Johnson starts by examining the owner’s daily responsibilities and the expertise a buyer would need to replace.
“As an owner, the question you need to ask yourself is what are you doing day-to-day right now? And how integral are you as an individual to the daily operations?” Johnson said.
Equipment condition and documentation also matter. A detailed inventory helps Praxis explain what a buyer is acquiring and how those assets support the operation.
“For me as a broker, I need detailed information on those machines. I’m going to present a package to a buyer, and I need to have a nice robust list of what you have,” Johnson said.
That inventory becomes more useful when supported by service records, equipment ages, operating hours and documentation of major repairs. These details help prospective buyers understand how heavily machines have been used, how consistently they have been maintained and what future maintenance or replacement needs might look like. For a manufacturer preparing to sell, organizing those records can give buyers a clearer picture of the equipment behind the asking price.
The Ideal Brokerage
For Johnson, a successful transaction requires attention to the relationships on both sides of the deal. That approach recently helped Praxis complete the sale of a second-generation, mid-Michigan CNC shop to local buyers interested in acquiring and growing complementary businesses.
“I like to say my ideal buyer is a dreamer,” Johnson said.
The buyers planned to participate in operating the business, while the seller would remain involved during a gradual transition.
“They’re excited about growing these businesses, taking them to the next level, and putting new technology in,” Johnson said.
What to Look Out for When Selling
Strong financial results do not eliminate risks tied to customer or supplier dependence. Johnson said buyers and lenders examine whether losing a single relationship could materially change a company’s earnings or ability to operate.
“We call it customer concentration and vendor concentration,” Johnson said.
As a best practice guideline, Johnson prefers that no individual customer or vendor account for more than 30% of the respective portfolio.
Pricing expectations also matter. In the CNC shop transaction, Johnson said Praxis initially listed the business above its recommended valuation at the seller’s request. After a pause, the company returned to market with an updated valuation and price.
“We do our valuations in-house and we do our best to provide an accurate market valuation of what we believe the market will bear,” Johnson said.
How to Prepare and How to Get in Touch
Preparing for a sale means making the business easier for someone else to understand and operate. Documenting procedures, developing employees and organizing equipment records can help reduce dependence on the departing owner.
“Another typical issue with an owner-operator business is that everything’s in the owner’s head,” Johnson said.
Johnson understands that challenge firsthand, he added. After joining Praxis in 2020 and becoming its sole owner in May 2026, he has been working to document the firm’s own processes and make its knowledge easier to share.
His interest in succession extends beyond completing a transaction to keeping businesses connected to their communities.
“I like to see these businesses in the hands of local and passionate community members. That’s what excites me the most,” Johnson said.
To learn more about Praxis Business Brokers and discuss a potential ownership transition, visit praxisbusinessbrokers.com or contact Ryan Johnson via rjohnson@praxisbusinessbrokers.com.
