Is This the Right Time to Sell a Manufacturing Business?
With trade policy dominating the news cycle since the beginning of the second Trump administration, the business-for-sale market has seen a surge in manufacturing business sale prices. As reported in BizBuySell's most recent Quarterly Insight Report, sale prices for manufacturing businesses sold in Q1 2025 increased by 54%. One key tenet of the Trump administration's trade policy is building and strengthening the manufacturing sector for U.S. businesses. While tariffs have experienced a roller coaster of starts, pauses, and negotiations with trading partners, this has created interest from both sellers looking to capitalize on favorable conditions and buyers in the market to acquire manufacturing businesses.
Manufacturing Businesses for Sale Prices on the Rise
In the first quarter of 2025, manufacturing businesses saw a 54% year-over-year increase in median sale prices. With a median sale price of $1.2 million, this sector—which includes metal product manufacturers, machinery, lumber, and more—is seeing the highest median sale prices since the COVID recovery year of 2021.
As businesses moved to reshore, nearshore, and insource operations following supply chain disruptions caused by COVID shutdowns, the industry moderated in the following years. After a few years of steady transactions, 2025 has started with a boom, with business owners seeing higher sale and asking prices.
Financing for Manufacturing Businesses
Under the new Trump administration, the Small Business Administration has announced new initiatives and rolled back several policy measures introduced during the Biden administration. The Made in America Manufacturing Initiative is designed to empower small manufacturers by increasing access to capital and helping small businesses export their products globally.
Additionally, updates to the Small Business Administration's Standard Operating Procedure for Lender and Development Company Loan Programs took effect this month. For the manufacturing business-for-sale market, updates include a mandatory 10% equity injection and limits on seller financing, among other changes. For sellers and buyers looking to transfer manufacturing businesses, pre-qualifying with an SBA lender can help streamline the financing process amid these new requirements.
Capitalizing on Current Market Conditions
The first half of 2025 has demonstrated the strength of this market convergence: record-high sale prices, supportive federal policy, and updated SBA financing rules. With median sale prices reaching $1.2 million and sellers consistently achieving approximately 94% of their asking prices, the manufacturing sector is experiencing sustained momentum.
As we move through the second quarter, market fundamentals remain strong. The Trump administration's manufacturing focus has the potential to drive increased buyer interest for businesses in this sector. For manufacturing business owners considering an exit strategy, the current environment offers both attractive valuations and a buyer pool actively seeking domestic manufacturing capabilities.
For entrepreneurs interested in selling, buying, valuing, or benchmarking a manufacturing business, BizBuySell offers several resources: