Niche Exit Planning Strategies
Selling a Die Casting Machinery Business
Despite the pessimistic mood of many sellers, your die casting machinery business can be a high value acquisition target for ambitious entrepreneurs -- even in today's tough economy.
In a down economy, many die casting machinery business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of die casting machinery businesses that are actually for sale.
But at Gaebler, we see die casting machinery businesses still selling at a brisk pace. Not surprisingly, buyers expect to receive value for their dollars - and that means sellers need to demonstrate that their businesses are capable of delivering anticipated returns.
Realistic Expectations
For most owners, the hardest part of selling a die casting machinery business is remaining objective. Your estimate of your company's worth is probably skewed by your emotions and your close, personal connection to the business. In our experience, the most successful sales are ones in which the seller has made an intentional effort to remain objective and set realistic expectations. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
Sweetening the Deal
Today's die casting machinery business buyers expect sellers to offer concessions to persuade them to close the deal. Concessions can consist of non-cash as well as cash incentives. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. A limited amount of training and mentoring may seem inconsequential to you, but to a young die casting machinery business owner, they can be critical launching points for their ownership journey.
Signs You're in Over Your Head
The die casting machinery business-for-sale marketplace is a mixed bag of brokered sales and solo efforts. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. If you decide to go solo and your business has been on the market for more than six months without a single buyer inquiry, it's time to hire a professional business broker. Lack of buyer enthusiasm or persistence indicates that something is wrong. Hire a broker and conduct a professional appraisal ASAP.
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