With all the acquisition activity taking place right now, it’s important to plan ahead. To maximize your opportunity for a successful sale of your business there are a lot of variables to consider. A lot of these variables apply to selling any business and there are some that are even more impactful to the manufacturing sector. You will want to take the steps necessary to get the most out of your business.
What can you do to ensure that you’re getting the maximum value and a smooth transition? The team at Advanced Business Brokers has a wealth of experience working with manufacturing clients to help them get the most out of their sale. What follows are a handful of recommendations that we believe will help you maximize your success in this process.
Having one level of management or a whole team in place opens the opportunity for more buyers to be interested in your company and provides vision for scalability. Conversely, a business where the owner is the sole manager and makes all the decisions will be a major detractor to the value and deal structure. Creating an efficient management structure takes time and needs to be established three to five years prior to wanting to sell.
Additionally, when buyers are interested, they’re likely to inquire about your business’ processes and procedures. By creating a document that breaks down your business’ daily activities, you’ll assure buyers that their transition into ownership will be seamless.
In manufacturing, documentation is absolutely critical. How many of your day-to-day processes are simply passed verbally from employee to employee? To get the maximum value out of your company, it’s crucial that you give buyers all the keys they need to run your business efficiently.
If you want to impress potential buyers when selling a manufacturing business, you’ll want to make sure your facility is well organized and maintained. Perform needed repairs, make sure loading docks are clear, and ensure that your equipment is in good working order. By paying attention to the small details, you’ll instill confidence in buyers and convince them that your business is worth their investment.
In addition to the above, other areas that you can address to factor into supporting a higher asking price include but are not limited to the following. Clean up your financial statements, this is the curb appeal of any business. Sell any unused major equipment and liquidate obsolete inventory. Lastly, strengthen your employment force by cross-training employees where possible.
At Advanced Business Brokers, we understand the challenges of selling a manufacturing business. If you’re looking for a company that will work diligently to help you realize the full value of your business, reach out to us today to learn how we can help.
If you’re thinking about selling your business and don’t know where to start, consider speaking with our team here at Advanced Business Brokers. We specialize in brokering and advising exit plan strategies for various sizes/sectors of businesses.
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