Sell a Business for the Best Price
Selling a Precision Tools Business
Is the economy still a little shaky for a business sale? Sure it is. Yet precision tools businesses haven't heard the news and are reporting steady action on the business-for-sale market.
With planning and patience, most precision tools businesses can be sold for a fair price in the current business-for-sale marketplace.
Market timing is a constantly moving target. That's why we think it's important for precision tools business owners to know that it's possible to sell a business in any economy. To improve sale outcomes, you will simply need to tailor your precision tools business to today's buyers.
Timing the Market
Now may be the best time to sell a precision tools business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on precision tools businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. Market conditions can be intimidating. But your larger concern should be whether or not your business is ready to be presented to qualified sale prospects.
Brokerage Benefits
Brokers give precision tools business sellers distinct advantages in the marketplace. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Brokerage isn't cheap. But even though you can spend as much as 10% of the sale price on a good broker, you'll likely achieve decent ROI through an improved final sale price.
Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
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