Business Exit Planning
Selling a Metals Business
You've heard the naysayers - now isn't the time to sell a metals business. But what they don't know is that many entrepreneurs see metals businesses as a smart business investment.
Selling a metals business isn't as simple as listing a power tool on eBay. These days, the business-for-sale market is a hostile place for inexperienced and uninformed sellers.
There is no simple way to sell a business. But the most prepared metals business sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
Economic Considerations
Several economic factors can affect the sale of a metals business. Interest rates, spending, inflation, and other variables directly influence how long your metals business will be on the market as well as its sales price. But at Gaebler, we advise our business partners to look beyond simple economic data when determining whether it's the right time to sell a metals business. A much better approach is to focus on the factors that always attract buyers and investors. When it comes to selling a metals business, successful sales sales often boil down to the business itself - not the economy.
Benefits of Third-Party Assistance
At some point, you're going to need help selling your metals business. Brokers can be an important resource for your sale, especially if you are unfamiliar with the business-for-sale marketplace. Additionally, you may want to hire professionals for legal, valuation and other functions before you put your business on the market. The early recruitment of external resources reduces your risk and results in a more predictable final outcome.
Equipment and Inventory Concerns
During due diligence, the buyer will undoubtedly conduct his own appraisal of your metals business's physical assets. Most sellers, however, conduct a pre-sale appraisal to gain an accurate gauge of asset value prior to negotiations. A pre-sale appraisal is a prerequisite for because it offers insights about your assets' market value before you initiate conversations with prospective buyers. During your appraisal process, you should also note the condition of your assets. Cost-effective repairs can then be made before your list your metals business.
Share this article
Additional Resources for Entrepreneurs