Business Exit Planning
Selling a Metal Stamping Business
Most businesses are susceptible to economic conditions and metal stamping businesses are no exception. But in some cases, a down economy can actually improve saleability. Now all you have to do is convince the right buyer that your business is built for long-term success.
Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a metal stamping business sale works.
If your exit strategy involves selling a metal stamping business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Workforce Concerns
As a business owner, you want to keep you employees informed about your plans; as a seller it's in your best interest to keep your employees in the dark for as long as possible. You're concerned about confidentiality, and rightfully so. But sooner or later, employees will begin to suspect that something is up, especially when you start parading prospective buyers through the business. 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 metal stamping business on the market. Maintain a positive tone in your conversations and answer your employees questions as completely as you can without jeopardizing the sale.
Sale Costs
You'll need to incorporate the cost of the sale into the calculation the minimum price you are willing to receive for your metal stamping business. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a metal stamping business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Laying the Groundwork
A successful metal stamping business sale begins with careful planning. Although you are convinced your business has value in the marketplace, the planning process establishes a framework for communicating its value to prospective buyers. Professional business brokers understand buyers and know how to properly communicate a metal stamping business to the marketplace. Specifically, brokers can advise you about the preparation of financial statements and other documents buyers expect to see in a premium metal stamping business opportunity.
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