Business Exits By Industry
Selling a Corrugated Paper Business
A lot can go wrong during the sale of a corrugated paper business even if the seller has previous business sales experience. We'll tell you how to keep your sale and your future plans on track.
Although we're optimistic about the economy, we also recognize that it takes the right strategy to sell a corrugated paper business in today's market.
You'll always have an excuse for not putting your business on the market. Selling a corrugated paper business isn't easy, but we believe sellers can achieve their goals in any economic environment.
Average Preparation Time
There are no effective shortcuts for selling a corrugated paper business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a corrugated paper business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Working with Appraisers
There is no substitute for a qualified appraisal in the sale of your corrugated paper business. Armed with a professional appraisal, both you and your broker can enter the negotiation stage with confidence. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
Buyer Identification
Qualified corrugated paper business buyers come from a range of sources and backgrounds. Avoid pigeon-holing your search to a single buyer category. Although it's helpful to target promotional tactics to likely buyers, allow for some exposure to the broader market. Sellers should also recognize the value of promoting their sale in trusted business networks, carefully balancing the need for confidentiality with the promotional potential of their contact base.
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