Buying an equipment or electronics manufacturer in Florida

These are small companies that make machinery and equipment, electronic assemblies and devices, electrical equipment and transportation equipment. In Florida that includes control panel builders, contract manufacturers that assemble circuit boards, makers of sensors, lighting, antennas and test equipment, builders of specialized industrial machines, and suppliers to the aerospace, defense and space industries.

Some own their products and sell them under their own brand, through distributors or directly. Others build to customers' designs under contract. Their own products usually earn more, but they bring engineering, customer support and warranty obligations. Contract work depends on what a few large customers forecast they'll need.

You'd be buying designs and intellectual property, production and test equipment, certifications, supplier relationships and engineering know-how. A typical team has engineers, technicians and assemblers, a quality manager, buyers who keep parts coming, and a few salespeople. Some parts take a long time to arrive, so inventory can be a large share of what you're paying for.

Shipyards are included here too, but they're a different business. They build, haul out, repair and refit commercial, government and private vessels on a waterfront site, and they're paid by the job or under repair contracts. Welders, fitters, mechanics and painters do heavy work outdoors.

• Products the company owns, with designs, software and patents documented and in the company's name.
• Customers spread across industries, including some on long-term contracts, so one program ending doesn't empty the order book.
• Repair, spare parts and service work on equipment already in use, which tends to repeat.
• Engineers besides the founder who understand the designs and can support customers.
• Current certifications that customers need: quality systems, safety listings, aerospace or medical standards.
• More than one source for critical parts, or enough stock to ride out shortages.
• Low warranty and return rates that are actually tracked.
• A backlog of firm orders, not just forecasts.
• Products designed so they can be updated when parts are discontinued.

Florida has no general license for these manufacturers, beyond a local business tax receipt and zoning. Federal and product rules matter more:

• Making defense articles requires registration with the State Department under ITAR (the International Traffic in Arms Regulations), even if the company never exports. Ownership changes must be reported within five days, and a sale to a foreign person needs 60 days' notice (22 CFR 122.4). Some products also need export licenses from the Commerce Department.
• Defense work that involves controlled unclassified information (sensitive government information that isn't classified) falls under the Defense Department's CMMC program. From November 10, 2026, many such contracts are slated to require a third-party assessment (32 CFR 170.3).
• Electronics that emit radio signals need FCC equipment authorization. Electrical equipment used in workplaces usually needs a listing from an OSHA-recognized testing lab.
• Medical device makers need FDA registration and a device manufacturer permit from the DBPR. A change in majority ownership needs a new permit application before closing (section 499.012, Florida Statutes).
• Shipyard workers on the water or on adjoining docks are generally covered by the federal Longshore and Harbor Workers' Compensation Act, so the yard needs coverage from an insurer the Labor Department authorizes. OSHA has separate shipyard standards (29 CFR part 1915). Docks over state-owned water bottoms need a submerged land lease from the Department of Environmental Protection (DEP), which can be assigned to a buyer only with the state's approval.

• Who owns the designs, software and patents, and whether employees and contractors have signed agreements assigning their work to the company.
• How much of the business rests on a few customers, and contract terms, including warranties and limits on liability.
• Inventory: how old it is, how much is excess or obsolete, and how it's valued.
• Past product liability and warranty claims, and what the company has promised on products already sold.
• Certifications, their next audits, and whether they're tied to the site or to the company.
• How the products are classified for export, and any past export problems.
• Agreements with key engineers, and whether they're likely to stay.
• Parts that will soon be discontinued, and the cost of redesigning around them.
• For a shipyard: the waterfront lease or submerged land lease, Longshore insurance and claims history, and an environmental assessment of the yard.

• Which products do you own the designs for, and which do you build to customer designs?
• Who besides you understands the core designs?
• What share of sales comes from your top three customers?
• Do you sell to defense, aerospace or medical customers, and what do they require?
• Have you had any product recalls, failures or liability claims?
• Which parts are hardest to get, and who else makes them?
• Which certifications or registrations will need updating after a sale?
• For a shipyard: who are your main customers, and how do you handle Longshore insurance?