How do I sell an industrial maintenance or millwright company?

Buyers of a plant maintenance firm are buying a crew, a set of plant relationships and the equipment to serve them. If all three depend on you personally, the business is harder to hand over. Most of the preparation is about making the firm run without you for a while, and showing a buyer that it does.

Make the relationships belong to the firm

Write down who your contacts are at each plant, what work you do there, how you won it and what the plant values. Introduce a second person from your firm to those contacts well before a sale. Where there are contracts or vendor approvals, gather them in one place, and ask your lawyer which would need a customer’s consent.

A lead hand who can run the work

A foreman or lead hand who schedules the crew, deals with the plant and keeps jobs on track makes your absence less of a worry for a buyer. Talk with that person early about their future. If a key employee might want to buy, or to stay on, you want to know before you go to market.

Records that tell the story

• Equipment, rigging and tooling lists with inspection and service records.
• Financials that separate recurring maintenance from shutdown and project work.
• Safety documents and any approvals plants have issued to the firm.
• A clear account of what you personally do each week.

Confidentiality and finding buyers

Crews and plant managers talk. Decide who needs to know and when, and use confidentiality agreements with serious buyers. Likely buyers include competitors, larger industrial service groups and a key employee. A broker can help; ask whom the broker acts for. The guide on how to sell a service business covers the general steps.