Sell a Business for the Best Price
Selling a Plastic Packaging Business
We hear from a lot of business owners who are timid about listing their plastic packaging business. Despite the mood of the market, we think there are still opportunities to receive a good price for your plastic packaging business. Here's what you need to know . . .
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 plastic packaging business.
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 plastic packaging business.
Average Preparation Time
There are no effective shortcuts for selling a plastic packaging business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. 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 plastic packaging 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.
Buyer Concessions
In a tight economy, seller concessions are the name of the game. But that doesn't mean you can't push for buyer concessions to achieve a more favorable outcome in the sale of your plastic packaging business. For example, if the buyer needs seller financing, you can leverage a five-year loan to push for a higher sales price. Although you won't see all of the proceeds upfront, you'll earn interest on the balance and realize a higher price than you would in an all cash deal. Like seller concessions, buyer concessions should be addressed during negotiations, before the preparation of a Letter of Intent.
Broker vs. No Broker
Anyone who has ever sold a plastic packaging business has eventually needed to decide whether to use a business broker or go it alone. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your plastic packaging business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Share this article
Additional Resources for Entrepreneurs