How Do I Sell My Manufacturing Business?
Deciding to sell a business is a major step that prompts many questions. Is now the right time to sell? What is my business worth? What can I do to enhance the value of my business? How can I find buyers? Strategic Business Brokers is here to help answer these questions and more. With over 30 years of combined experience Strategic Business Brokers Group licensed brokers will help you with every step of the selling process including helping get your financial records in order, to placing your business on the market and finding potential buyers.
DETERMINING SALES PRICE
Valuing your manufacturing business can be a complex process as there are many factors that go into setting the right price. Just because another similar business down the street sold for a certain amount does not mean you will receive the same price. Manufacturing businesses are often valued on their discretionary earnings. Non-related income expenses, one-time investments, pre-interest, and pretax profits before non-cash expenses are included in discretionary earnings. The discretionary earnings amount will help determine how your business is perceived by potential buyers. Keeping your financial records up to date is also key in determining an accurate valuation of your manufacturing business.
MAINTAIN YOUR EQUIPMENT
Manufacturing businesses often have a lot of machines and other equipment on hand. Selling the equipment along with your business will go a long way in attracting buyers and raising the overall sales price. Potential buyers want to purchase the existing equipment with your business, so they can open their business immediately after purchase instead of waiting for new equipment to arrive.
The equipment you include with the sale of your business needs to be in proper working order. Scissor lifts, pallet trucks, compactors, conveyor belts and any other machines should be serviced before selling your business. If you find a machine is not working properly and the costs are minimal to repair, then you should repair the device. If the repair is more than you are willing to spend, or the machine is not functioning at all then you must disclose this information so there are no issues after closing. You may not need to purchase new equipment. Just maintain the equipment you have.
BENEFITS OF SELLING WITH A BROKER
A business broker is often your best bet when it comes to getting the best value for your manufacturing business. Selling your business has many complex steps and Strategic Business Brokers Group can help you navigate this process. A Strategic Business Brokers Group licensed broker will market your business while seeking out and working with potential buyers. The broker will ensure each potential buyer is prequalified and capable of purchasing your company. This will save you time and money in the long run and effectively setup the sale of your business. An experienced broker will mediate the sale of your manufacturing business with potential buyers. Selling the business you have put years into building can be emotional so let Strategic Business Brokers Group take care of the details for you.
Getting in touch with a professional business broker will help you in your journey to sell your business. Contact Strategic Business Brokers Group at 480-284-4998 or Click Here to find out if it’s the right time for you to sell.