Niche Market Exit Planning Tips
Selling a Broaching Tools and Equipment Business
You've heard the naysayers - now isn't the time to sell a broaching tools and equipment business. But what they don't know is that many entrepreneurs see broaching tools and equipment businesses as a smart business investment.
The economy isn't the only thing that is uncertain these days. So are broaching tools and equipment business buyers, many of whom are waiting to pull the trigger on their next acquisition.
The economy hasn't squashed the market for broaching tools and equipment businesses. And the ones that are commanding the highest price tags are the ones with sellers who are committed to the sale process.
Maintaining Objectivity
Objectivity is a rare commodity in a business sale. Your estimate of your company's worth is probably skewed by your emotions and your close, personal connection to the business. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. Many sellers create a negotiation team to minimize the effect of their personal emotions on negotiations. More importantly, this team can perform a reality check on your expectations for the sale.
Benefits of Third-Party Assistance
Rarely, if ever, do owners sell a broaching tools and equipment business without outside assistance. Brokers can be an important resource for your sale, especially if you are unfamiliar with the business-for-sale marketplace. Other early hires include the professionals you will need to valuate the business, prepare financial statements and navigate legal considerations. The early recruitment of external resources reduces your risk and results in a more predictable final outcome.
Family Business Sale Tips
There is no easy way to sell a broaching tools and equipment business, not even to a family member. In fact, selling your broaching tools and equipment business to a family member can quickly become a no-win proposition. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. If possible, discuss a long-term, generational transition with the entire family and seek the advice of a professional consultant.
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