Are You Wondering: How Do I Sell My Manufacturing Company?
If you’ve spent the last few years (or decades) building up your manufacturing business, you probably understand the value your company provides other businesses. This sense of purpose keeps many business owners satisfied indefinitely.
However, maybe lately you’ve begun to wonder if now is the right time to sell. Perhaps in recent months (or years) you’re feeling less interested in the daily operations of the business and have daydreams about other ways you could spend your time.
At Alliant, most of the clients we work with are thrilled to find out that there’s never been a better time to sell their business. Over 10,000 small businesses were sold last year alone.
That also means more potential buyers are available than ever before. In order to get the maximum value out of your manufacturing business, it must stand out from the competition. Here are three things to consider before listing:
Focus on Your Business
At first glance, selling any small business is similar to selling a home: buyers must have a great first impression. This means it’s time to roll up your sleeves and clean up the shop floor.
Ask yourself how the facility looks and feels when someone walks in the door for the first time. You may be used to eyesores or old equipment, but for a potential buyer that may look like future headaches they don’t want to inherit. Double check safety issues and tend to any hazards that need to be resolved. Manufacturing related businesses also need to be positive they are in compliance with any and all environmental laws.
This is also the time to keep focused on running the business. Don’t let your desire to move on overshadow productivity and organizational strategies. Businesses with strong operations and a solid management team in place are most appealing for buyers.
Understand Your Business Value
Potential buyers of any business in any industry want proper documentation. That includes accurate, up-to-date paperwork or you may receive a much lower offer than what your business is worth. Profit sheets or profit/loss statements and tax returns (at a minimum) will also support your asking price.
Get a realistic Opinion of Value from an expert. We’ve seen too many business owners price themselves out of the market or undervalue what they’ve worked so hard to build. Our business valuation experts are available and can provide you with a free, confidential Opinion of Value whenever you are ready. It starts with a simple conversation about your business.
New owners will need information regarding lease agreements, supplies, and equipment. Other considerations include: client agreements, website ownership, and any branding or marketing already established. These can help with your appraisal for the overall value of your manufacturing company.
Listing Your Manufacturing Business
Manufacturing related businesses are often purchased by other owners within the same industry. Still, confidentiality is crucial to prevent disruption of the business during the negotiation process.
Without a buyer in mind already, the process becomes more complex and often overwhelming for small business owners. The easiest way to mitigate stress is to find a successful business broker, one who has experience and connections and a solid support team. At Aliant, we market your business confidentially to our backlog of active buyers, our extended business networks, and our online listings portal.
As we like to say, “Our only business is selling your business… CONFIDENTIALLY.”
For many manufacturing related business owners, selling the company is simply closing one door in life to open another. A well-planned exit strategy allows ownership to transfer seamlessly without impacting the culture that’s been established.
If you’re considering selling your business in the near future, contact us today to talk to an expert and discover the true market value for your business.