# Demystifying the Buying and Selling of a Manufacturing Business w/ Mike Payne

- Show: [The Manufacturing Executive](https://hardwarepodcasts.com/podcast/the-manufacturing-executive)
- Published: 2025-02-25
- Length: 38m
- Episode: 246
- Page: https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2025-02-25-demystifying-the-buying-and-selling-of-a-manufacturing-business-w-mike-payne
- Listen: https://www.spreaker.com/show/the-manufacturing-executive#episode-e3ce6071-f13d-4ac6-b9bd-6a74d9a5419a

## Summary

Mike Payne, owner of Hill Manufacturing & Fabrication and host of the 'Buy the Numbers' podcast, discusses the realities of buying and selling manufacturing businesses. He explains that while many machinists dream of ownership, the process is daunting due to a lack of financial literacy and fear of the unknown. Payne advises sellers to focus on growing Seller's Discretionary Earnings (SDE) and building a self-sufficient business to maximize valuation multiples, rather than just upgrading equipment. He also outlines his strategy for scaling through acquisitions, targeting tired but profitable shops to inject operational improvements.

## Chapters

- [0:36](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2025-02-25-demystifying-the-buying-and-selling-of-a-manufacturing-business-w-mike-payne#t=36) Introduction and Mike Payne's Background
- [14:00](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2025-02-25-demystifying-the-buying-and-selling-of-a-manufacturing-business-w-mike-payne#t=840) The Entrepreneurial Mindset and Barriers to Entry
- [23:44](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2025-02-25-demystifying-the-buying-and-selling-of-a-manufacturing-business-w-mike-payne#t=1424) Valuation: SDE vs. Equipment and Multiples
- [32:32](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2025-02-25-demystifying-the-buying-and-selling-of-a-manufacturing-business-w-mike-payne#t=1952) Building a Self-Sufficient Business for Exit

## Topics

- [Growth, exits & acquisitions](https://hardwarepodcasts.com/topic/growth-exits-and-acquisitions)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Leadership, teams & culture](https://hardwarepodcasts.com/topic/leadership-and-culture)

## Most relevant to

companies scaling up

## Mentioned

- Hill Manufacturing & Fabrication (company)
- Buy the Numbers (product)
- Making Chips (product)
- Gorilla 76 (company)

## Related episodes from other shows

- [157: Building Your Business to Sell with Bob Goldsmith, Founder & President of Northern Edge Advisors](https://hardwarepodcasts.com/podcast/manufacturing-happy-hour/2023-10-17-157-building-your-business-to-sell-with-bob-goldsmith-founder-president-of-north) (Manufacturing Happy Hour)
- [148: Why Your Manufacturing Business Should Be Boring with Marc Bowers, Executive Director of St. Louis Makes](https://hardwarepodcasts.com/podcast/manufacturing-happy-hour/2023-08-08-148-why-your-manufacturing-business-should-be-boring-with-marc-bowers-executive) (Manufacturing Happy Hour)
- [218: Why Buying and Selling a Business Is a "War over the Numbers" Featuring Clint Bundy of Bundy Group](https://hardwarepodcasts.com/podcast/manufacturing-happy-hour/2025-01-07-218-why-buying-and-selling-a-business-is-a-war-over-the-numbers-featuring-clint) (Manufacturing Happy Hour)
- [Selling Your Company and Creating the ‘Netflix of Manufacturing’ with Darrin Mitchell](https://hardwarepodcasts.com/podcast/manufacturing-happy-hour/2022-01-11-selling-your-company-and-creating-the-netflix-of-manufacturing-with-darrin-mitch) (Manufacturing Happy Hour)
- [070: Financing & Acquisition for Product Companies](https://hardwarepodcasts.com/podcast/product-startup/2021-04-08-070-financing-acquisition-for-product-companies) (Product Startup)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2025-02-25-demystifying-the-buying-and-selling-of-a-manufacturing-business-w-mike-payne. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to The Manufacturing Executive.