How to Prepare a Manufacturing Company for Sale
Slovakia’s industrial sector has long been attractive to foreign investors. Manufacturing companies with annual revenues in the tens of millions of euros and a significant share of exports are especially appealing — they combine know-how, skilled people, stable customers, and a strong geographic position. However, selling such a company is far from simple. Foreign investors arrive with clear expectations and a highly professional approach.
How should an owner — who is also the CEO, makes most key decisions, and whose spouse manages the finances — prepare the company for a successful sale? The following recommendations outline what the owner, their family, and the company itself should address to achieve the best possible result.
1. Separate the company from the owner
In many Slovak firms, the owner is also the general manager, lead salesperson, negotiator, and chief innovator. While this setup has advantages — quick decisions, a strong vision, and personal drive — it poses a risk for investors who ask: “What happens when the owner leaves?”
It is essential to build a capable management team able to operate independently. Clear leadership must be established for sales, production, finance, and HR. The owner should gradually step back from daily operations and focus on strategy. External advisors can help identify weaknesses and create a roadmap for professionalization.
2. Professional finance and reporting
If the owner’s spouse also serves as the head accountant, investors may see this as a lack of independence and professionalism in financial management. Even if the numbers are correct, it raises concerns about transparency. Investors expect:
• Regular monthly reporting
• Profitability analysis by product, customer, and market
• Audited financial statements under international standards
• Clear separation of corporate and personal finances
External advisors can help implement investor-grade reporting and prepare the accounting for due diligence.
3. Separate business and personal finances
In family businesses, personal and corporate matters often overlap — cars, properties, employees, or private expenses go “through the company.” What seems natural at home becomes an issue during due diligence.
Foreign investors verify whether the accounts reflect the true economic performance. Mixing private and company costs reduces credibility and can negatively affect valuation. Advisors can perform a normalization of earnings, adjusting results to show the real profitability after removing personal costs — a step that can have a major impact on valuation.
4. Export – both a strength and a challenge
A 40% export share is a strong selling point, proving the company’s competitiveness abroad. Yet investors will ask detailed questions:
• What is the profitability of export contracts?
• Are there long-term relationships with foreign partners?
• How are risks from currency, tariffs, logistics, or geopolitics managed?
Advisors can prepare a structured export portfolio presentation highlighting stability and growth potential.
5. “Tidying up before the visit”
Selling a company is like inviting guests into your home — investors will look beyond the numbers to see how the business actually runs. It is worth “tidying up”:
• Production: capacity, investment needs, equipment maintenance
• People: key employees, motivation, contracts
• IT & processes: digitalization, ERP systems, data security
• ESG & sustainability: environmental impact, working conditions, certifications
Advisors with transaction experience know what investors focus on and can help prepare answers in advance.
6. The owner’s role after the sale
A key decision is whether the owner will stay or fully exit after the sale. Foreign investors often prefer a transition period — typically 1–2 years — during which the owner remains as CEO or advisor to ensure knowledge transfer and continuity. Advisors help set fair and practical terms for both sides:
• For the investor – ensuring continuity
• For the owner – defining a clear endpoint and fair compensation
7. The sale as both a financial and personal process
Selling a manufacturing business is not only about numbers. For an owner who built the company from scratch, it is an emotional milestone — often involving identity, family, and employee concerns.
Advisors provide not only financial guidance but also communication support — with staff, potential buyers, and the family — creating a safe space for informed decisions without unnecessary pressure.
Conclusion
Selling a manufacturing company to a foreign investor is a complex process that cannot be done overnight. The biggest challenge is separating the company from the owner and untangling personal and business ties. The earlier a professional management team, independent finances, and clear processes are established, the higher the company’s value and the stronger its negotiating position.
The key is to have experienced advisors from the very beginning. At MONTWARD, we specialize in exactly this type of transaction advisory — from preparing the company for sale, leading due diligence, and structuring the Data Room to negotiating with international investors.
The best transactions happen not when the owner has to sell, but when both the company and the owner are ready — and thorough preparation with expert guidance is what makes the difference between an average and an outstanding result.
