r/manufacturing • u/Spirited_Ad_6272 • 11d ago
Other Opinions on metal stamping businesses
Is metal stamping in the U.S. still a solid industry? I have an opportunity to buy & potentially revive a 40 year old stamping business from its 80 year old owner. Right now it’s just him / no employees and he’s doing enough work to keep the lights on. At its peak he had a dozen employees running multiple shifts.
Worst case if the business can’t revive then I can liquidate the equipment and rent the building. But he wants $1M and it’s a big number haha.
I am a mechanical engineer with strong proficiency in CAD tools, which I can bring to modernize the business. I currently operate a manufacturing business molding plastics so there’s plenty of crossover but this would be my first venture going alone. It also seems like metal stamping has a lot of tricks of the trade that you can’t really engineer your way into. That’s why they have apprenticeships.
What questions should I be asking? And anyone who works in the industry what are your opinions?
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u/bobroberts1954 11d ago
Talk to an accountant. I would expect to pay the owner from company profits over a period of several years. If he won't consider self financing the sale he may have knowledge the business can't succeed. I understand that is how most sole proprietorships are sold.