Sellers often face significant price pressure when their products are easily comparable to those of their competitors. This is particularly true for companies involved in discrete manufacturing, where products can be clearly defined and distinguished from one another.

Buyers in this market have access to a wide range of cost analysis methods and systems, allowing them to thoroughly evaluate and scrutinize the costs associated with their suppliers' products.

When analyzing a potential purchase of a manufacturing firm, it is critical to go beyond reviewing the opportunity off on strictly financial and freely available information.

Instead, buyers must get past spreadsheets to see if the business can be translated into increased value or higher risks within their portfolio. Making these explorations early in the review process allows buyers to come up with a more accurate evaluation of a manufacturing firm before making long-term investments.