Business Exit Planning
Selling a Millwork Wholesale and Manufacturers Business
You've learned a lot during your tenure as a millwork wholesale and manufacturers business owner. The next step is to position your business for the demands of the business-for-sale marketplace.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a millwork wholesale and manufacturers business.
If your exit strategy involves selling a millwork wholesale and manufacturers business in this environment, business sellers may need to apply a combination of incentives and techniques.
Equipment and Inventory Concerns
It's incumbent on buyers to commission their own appraisal of your millwork wholesale and manufacturers business's physical assets. But you'll need to commission your own appraisal before you put your millwork wholesale and manufacturers business on the market to arm yourself with information for the negotiation phase. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. During your appraisal process, you should also note the condition of your assets. Cost-effective repairs can then be made before your list your millwork wholesale and manufacturers business.
Sale Preparation Timeframes
Preparing a millwork wholesale and manufacturers business sale takes time. For starters, the financials need to demonstrate a track record of profitability and growth. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a millwork wholesale and manufacturers business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Sale Costs
In a millwork wholesale and manufacturers business sale, pricing is based on a number of factors, including the costs incurred during the sale. Although they can significantly increase the final sale price, brokers typically receive a 10% commission. Professional consultations can also represent a significant expense during the course of a millwork wholesale and manufacturers business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
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