Business Exit Planning
Selling a Machine Shops Business
Looking for shortcuts? You won't find them when you sell a machine shops business. In this industry, a business sale takes time, effort and dedication. But with a few tips, you can keep your shirt and your sanity in the sale of your business.
Personal and professional concerns surround the sale of a machine shops business. In our experience, a common owner concern is how the sale will affect customers and employees.
But they're also savvy enough to know a good deal when they see it. To sell your machine shops business, you'll need to go the extra mile to prove your company has the potential to deliver steady revenue and a solid ROI.
Pre-Sale Checklist
The upfront time you investment in the sale of your machine shops business will pay big dividends at closing. The first item on your checklist should be a reality check -- if you plan to sell your business for top dollar in just a few short months, you need to adjust your expectations%However, your first priority should be to set realistic expectations for the selling process and its eventual outcome. After you have consulted with a business broker to right size your expectations, you'll need to add several items to your checklist, including financial statement preparation, pre-sale appraisals, financial planning, market positioning and other tasks designed to communicate value to prospective buyers.
Legal Considerations
It's obvious that you're going to need to hire an attorney to finalize the sale of your machine shops business. Competent legal counsel ensures that the sale documents are in proper order. Furthermore, a good lawyers provides the counsel necessary to navigate the tax and liability issues that surround a business sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
Workforce Concerns
Business sellers walk a fine line when it comes to preparing their employees for a sale. You're concerned about confidentiality, and rightfully so. However, the longer the selling process drags on, the more likely it is that rumors will begin to circulate throughout your workforce. So at some point you will have to resign yourself to the idea of telling some or all of your employees that you have listed the machine shops business on the market. Your employees will undoubtedly have many questions about their future with the company. Try to answer their questions to the best of your ability, but avoid making any promises that you are not authorized to make.
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