The 2025 Guide to Selling a Manufacturing Business in Kansas City
The 2025 Guide to Selling a Manufacturing Business in Kansas City
Last updated: July 2, 2025
Estimated read time: 9 minutes
Meta description (70 chars): Learn 2025 multiples, timelines & tax tips to sell a KC manufacturing firm
Median sale prices for manufacturing companies jumped 54 % year-over-year to $1.2 million in Q1 2025 thanks to on-shoring incentives and SBA policy tweaks. bizbuysell.com
Quality assets are still trading at ~6.1 × EBITDA—even after a flat 2024—putting Kansas-Missouri multiples near the top of post-pandemic ranges. caldergr.com
Deal size
Median EBITDA multiple¹
Notes
$1–2 M EV
4.0 ×
“Main Street” zone—SDE still common
$2–5 M EV
3.8 ×
Buyers begin underwriting on EBITDA
$5–10 M EV
4.6 ×
Competition ramps; 3-plus offers typical
$10–25 M EV
6.1 ×
Manufacturing leaders command premiums
¹Source: GF Data / Peercomps, May 2025 caldergr.com
18–12 Months Out — Readiness Audit
Normalize working capital, scrub one-offs, and document CAPEX.
12 Months — Sell-Side Quality of Earnings
Third-party QoE reduces renegotiations by ~30 %.
9 Months — Assemble Your Deal Team
CPA, M&A attorney, and sector-focused broker; insist on manufacturing credentials.
6 Months — Confidential Marketing Launch
Target strategic buyers (tool-and-die shops, contract manufacturers), PE funds, and the 40-plus search funds currently sourcing Midwest manufacturing deals.
3 Months — Management Meetings & LOIs
Prioritize bidders offering reverse break-fees to hedge tariff volatility.
45 Days — Diligence & Financing
SBA 7(a) changes (mandatory 10 % equity) have lengthened credit committees—build slack into your timeline. bizbuysell.com
Close +30 Days — Transition & Earn-out Handoff
Retain key supervisors for at least two quarters; draft KPI-based earn-out triggers to mitigate buyer-integration risks.
If your corporation holds C-corp status for ≥ 5 years and gross assets stayed under $50 M, up to 100 % of federal capital-gains tax may be excluded on the first $10 M of proceeds (or 10 × basis). Work with counsel early—re-structuring an S-corp six months before listing won’t cut it.
Pro-tip: Buyers often accept a “F-reorg” so they still step-up asset basis while you preserve QSBS eligibility.
Buyer profile
Typical sweet spot
Why they like KC
Regional strategics (e.g., metal fabricators)
$3–15 M EV
Consolidate freight lanes along I-70
Ops-heavy PE funds (Torque Capital, Granite Street)
$5–25 M EV
Skilled-labor hub; tariff tailwinds
Search funds from Axial & Kellogg
<$5 M EV
Owner-operator model fits legacy shops
Current data puts the median at roughly 6.1× EBITDA for deals between $10 M and $25 M in enterprise value.
In today’s market, plan on 7–10 months from kickoff to close if financials are clean and diligence is proactive.
No. QSBS requires five full years as a C-corp before the sale date, so late conversions won’t qualify.