Business Exit Planning
Selling a Metal Coatings Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet metal coatings businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
The buzz in the marketplace is that now isn't the right time to sell a metal coatings business. Consequently, sellers are holding their businesses off the market until they are sure the market will sustain their asking prices.
Eventually, it will the time will come to exit your business. When that happens, your future plans will be dependent on your ability to receive the highest possible sale price for your metal coatings business.
How to Choose a Business Broker
Good business brokers inevitably produce better business sales. During the selection process, look for brokers with a proven track record of successful metal coatings business sales. Take our word for it -- metal coatings businesses are unique businesses and you need a broker who understands how to properly market your metal coatings business to prospective buyers. The best brokers should also come with a list of references, a demonstrable track record and a proven plan for selling metal coatings businesses.
Pros & Cons of a Sale to an Employee
Employee sales have pros and cons. A faithful employee may have the motivation and ability to continue to operate the business. Since the worker already knows the ins and outs of the business, due diligence should be a breeze, not to mention the fact that you won't have to wait months or years for the right buyer to emerge on the open marketplace. Yet most employees lack the means to buy their employer's business at or near the asking price. A seller-financed deal may be necessary unless the employee has significant assets or investor backing.
Current Market Conditions
At first glance, today's market would seem to be a hostile place for metal coatings business sellers. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your metal coatings business as attractive as possible so to buyers right now.
Share this article
Additional Resources for Entrepreneurs