Business Exit Planning
Selling a Metal Recycling Business
Forget about what you read in the paper -- metal recycling businesses are being sold everyday and the business-for-sale market is poised for even greater growth in the months ahead.
Business buyers are a timid lot, even more so now that they are facing an uncertain economic landscape.
If you're ready to move on, now is the right time to sell your metal recycling business.
Economic Considerations
Several economic factors can affect the sale of a metal recycling business. Many would-be sellers are laser-focused on economic indicators, anxiously awaiting the perfect time to list their companies. The truth is that perfect market conditions may never materialize. A much better approach is to focus on the factors that always attract buyers and investors. When it comes to selling a metal recycling business, successful sales sales often boil down to the business itself - not the economy.
Dealing with Tire Kickers
Unfortunately, many of the prospects you will encounter aren't serious buyers. As a seller, it's important to separate the tire kickers from the serious buyers as soon as possible. Each tire kicker is an investment of time and energy that could be poured into finding a more qualified prospect. Your business broker can offer insights about how to quickly spot tire kickers. As a rule, they limit the amount of information that is provided in the initial stages of an engagement, waiting to reveal the juiciest details of the business until the prospect has been thoroughly vetted. Smart sellers may require prospects to provide background and financial information fairly early in the process as a way of verifying the financial capacity to close the deal.
Legal Considerations
It pays to invest in first-rate legal counsel when you sell a metal recycling 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.
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