Selling a Business Advice
Selling an Investment Castings Business
The decision to sell your investment castings business isn't something that should be taken lightly, especially these days. If a business exit is on the horizon, you'll want to check out our suggestions for staying ahead of the market.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling an investment castings business.
If you're ready to move on, now is the right time to sell your investment castings business.
Working with a Professional Accountant
Accountants lay the financial groundwork for a business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. You may also want your accountant to assist in the preparation of professional financials to present to serious buyers. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
Pros & Cons of a Sale to an Employee
There are both benefits and drawbacks to selling an investment castings business to an employee. A faithful employee may have the motivation and ability to continue to operate the business. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based investment castings business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Finding Prospects
Many sellers don't realize how many prospective buyers there are for their businesses. Although some investment castings business sellers advertise their businesses in general classifieds, the most successful sales are those in which professional brokers seek out likely buyers. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.
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