Business Exits By Industry
Selling a Cutting Tools Business
A lot can go wrong during the sale of a cutting tools business these days. More than ever before, it's important for sellers to know the tactics and techniques that are being used to maximize sales price and achieve desired sale outcomes.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
Does that mean selling your cutting tools business will be a piece of cake? No -- but you might be surprised to learn that the cutting tools businesses that are selling these days are finding success though simple, common sense selling strategies.
Broker vs. No Broker
Anyone who has ever sold a cutting tools business has eventually needed to decide whether to use a business broker or go it alone. Business brokers typically charge a 10% "success fee" when they sell a business, but they also handle many of the hassles that are associated with selling a cutting tools business. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Identifying Serious Buyers
Unfortunately, many of the prospects you will encounter aren't serious buyers. As a seller, it's important to separate the tire kickers from the serious buyers as soon as possible. Each tire kicker is an investment of time and energy that could be poured into finding a more qualified prospect. Your business broker can offer insights about how to quickly spot tire kickers. Never provide detailed information about your cutting tools business until the prospect has been qualified as a serious buyer.
Average Timeframes
Hoping for a quick cutting tools business sale? You may be disappointed. Unfortunately, there are no hard and fast rules about the length of time your business will be on the market. Pricing plays a role in sale length, but there are no guarantees that a fairly priced business will sell quickly. Before you can list your cutting tools business, you'll need to invest as much as a year in preparing it for prospective buyers. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.
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