Business Exits By Industry
Selling a Cable Assemblies Business
A good business is about more than dollars and sense. To make your cable assembly business what it is today, you've had to fully invest yourself in its success. To see your ownership role through to completion, you will need to exhibit similar diligence in selling your company.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
In order to market a cable assembly business in this environment, business sellers may need to apply a combination of incentives and techniques.
Post-Sale Details
As your cable assembly businesssale nears completion, there is a lot of work remaining to be done. There are several details that still need to be addressed. What will the ownership transition look like? Are you prepared to deal with the tax consequences of receiving a significant sum of money in exchange for your business? How will you prepare your employees for your inevitable exit from the business? If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
Selling a Cable Assemblies Business to an Employee
Employee sales have pros and cons. 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. But in many cases, employees expect to get a deal from their employer based on their years of service to the company. Seller financing is one way to get around the capital deficit of an employee-based cable assembly business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Average Preparation Time
There are no effective shortcuts for selling a cable assembly business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a cable assembly business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
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