Business Exit Planning
Selling a Mechanical Engineers Business
Your mechanical engineers business has been good to you. The next step is to position your business for the demands of the business-for-sale marketplace.
Business buyers face their own set of frustrations and complications. Although there are plenty of entrepreneurs who want to buy a mechanical engineers business, capital restrictions are holding them back.
It's time to engineer a new future for yourself. Why not start a business that specializes in mechanical engineering?
If your exit strategy involves selling a mechanical engineers business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Preparing for What's Next
What will happen if your mechanical engineers business is a success? If you aren't sure what's next, you could be in trouble because future plans and selling strategy are inextricably connected. We frequently encounter business sellers who haven't thought enough about their futures to know whether certain concessions (e.g seller financing) are a real possibility. As a result, they make bad decisions during the sale and experience less-than-optimal outcomes.
Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
Tips for Working with A Business Broker
Brokerage is a mainstay of the business-for-sale marketplace. It's typical for mechanical engineers business to rely on brokers to reduce market time and increase the final sales price. However, your broker will still expect you to materially participate in the sale of your business. Successfully brokered sales are based on solid relationships between brokers and sellers as well as the strict execution of a common selling strategy.
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