Advice on Niche Market Exit Planning
Selling a Tool and Die Makers Business
Planning and execution can dramatically influence the price you receive for your tool and die makers business.
According to the experts, there is currently a large volume of shadow inventory in the tool and die makers business market -- businesses that are waiting to be listed until the economy recovers.
There is no simple way to sell a business. But the most prepared tool and die makers business sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
Timing the Market
Now may be the best time to sell a tool and die makers business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on tool and die makers businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Leveraging External Resources
Rarely, if ever, do owners sell a tool and die makers business without outside assistance. The enlistment of a qualified business broker is an excellent first step. We also suggest hiring an attorney, an appraiser, and an accountant early in the process. The early recruitment of external resources reduces your risk and results in a more predictable final outcome.
Seller Financing
Business buyers are in a capital crunch. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized tool and die makers business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
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