Why Small Manufacturers Need IIoT to Secure a Higher Sale Price

Many small manufacturers—often operating for decades—generate annual revenues between $2 million (€1.8 million) and $20 million (€18.1 million) and are now focused on an exit strategy. These founders typically serve as critical suppliers within aerospace, aviation, automation, machining, and food‑production supply chains.

At the same time, most owners are 65 years or older and, while experts in their craft, may not know the exact steps required to prepare their business for sale. “Founders need a clear, actionable plan to position their company for acquisition,” says Frances Brunelle, founder of Accelerated Manufacturing Brokers, Inc.

Acquiring firms often target key suppliers or Tier‑2 partners to expand their product portfolios and secure stable revenue streams. These buyers are younger, highly business‑savvy, and constantly monitor market trends—frequently via mobile devices.

Although the term IIoT (Industrial Internet of Things) has only been around for a few years, prospective buyers now scrutinize a company’s Industry 4.0 readiness. Without basic IIoT capabilities, sellers face a lower valuation and a higher cost of integration post‑purchase.

IIoT – Higher sales price for small manufacturers

While media coverage of IIoT often focuses on Fortune 1000 enterprises, 94.7 % of all manufacturing firms are small businesses, and 91 % have fewer than 500 employees. The scale of investment by large corporations does not mirror the realities of companies generating $2 million to $20 million in revenue.

Strategic IIoT implementation offers tangible benefits for small manufacturers, directly influencing a company’s attractiveness and final sale price. By providing real‑time data access, IIoT improves operational efficiency, reduces late deliveries, decreases return rates, and enhances customer satisfaction—especially in a 50‑person machine shop where manual data retrieval often leads to costly delays.

Unfortunately, many small manufacturers still juggle data across spreadsheets, disparate software, and paper records. Adopting IIoT enables them to consolidate information, streamline decision‑making, and present a forward‑thinking, technology‑ready organization to potential buyers.

Beyond data alignment, IIoT serves as a critical differentiator in the sale process. Sellers who invest in IIoT can recover that investment by commanding a premium price for their business.

The author is Frances Brunelle, founder, Accelerated Manufacturing Brokers, Inc.

About the author

Frances Brunelle is the founder of Accelerated Manufacturing Brokers, Inc., specializing in the sale of lower‑middle‑market manufacturing companies nationwide. She also hosts the WAM Podcast (Woman and Manufacturing), which spotlights opportunities for women in senior management and ownership roles. Fran and her team help preserve U.S. manufacturing by facilitating smooth ownership transitions to the next generation of entrepreneurs. Her writings guide manufacturing owners through preparation and sale strategies to secure favorable financial outcomes for retirement.