How do I show a buyer my powder coating line’s throughput and downtime?
Show records, not claims. Pull job logs, shift output and downtime notes, and explain every large gap. Buyers believe a line more readily when they can see the busy periods, the stoppages, the repair causes and the spare capacity from your own written trail.
A buyer wants to know what the line can really do. Start by gathering whatever you already keep: job tickets, hook counts, batch sheets, maintenance logs and invoices for repairs. If you do not track downtime, begin now, even on a simple whiteboard sheet, and be honest that the record is recent.
Present throughput in plain terms. Show a typical busy day and a typical slow one, the parts mix, and what limits output: the oven, the booth, the racking, the labour or the order flow. Buyers also like to see what happens when the line stops, so explain the cause of each major breakdown and the fix.
Be open about spare capacity. If the line runs one shift, say what a second could add and what it would cost in people and utilities. Do not overstate it, because a buyer will check against your sales records and the equipment’s condition. Your accountant can help line up the numbers with the financial statements so the story is consistent. Offer a plant walk during a normal run, because a buyer who sees steady work with their own eyes trusts the written figures more.
Key takeaways
- Gather job tickets, batch sheets and maintenance logs before the buyer asks.
- Explain what limits output and the cause of each major stoppage.
- Keep capacity claims consistent with your sales records and equipment condition.
- Admit gaps in your records plainly, and start tracking downtime now if you have not been.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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