Business Exit Planning
Selling a Metal Dealers Business
Is the economy still a little shaky for a business sale? Sure it is. Yet metal dealers businesses haven't been deterred. In fact, we think this economy is a ripe environment for a metal dealers business sale.
It's a fact: Successful business sales take time.
Eventually, it will the time will come to exit your business. When that happens, your future plans will be dependent on your ability to receive the highest possible sale price for your metal dealers business.
Sale Preparation Timeframes
It's critical to properly plan for the sale ofa metal dealers 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 metal dealers 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.
Advantages of Hiring a Broker
There are many reasons why hiring a broker makes sense in metal dealers business sales. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. Even more, the best brokers have a track of record of discreetly identifying likely buyers and contacting them on your behalf. Brokerage isn't cheap. But even though you can spend as much as 10% of the sale price on a good broker, you'll likely achieve decent ROI through an improved final sale price.
Equipment and Inventory Concerns
During due diligence, the buyer will undoubtedly conduct his own appraisal of your metal dealers business's physical assets. Most sellers, however, conduct a pre-sale appraisal to gain an accurate gauge of asset value prior to negotiations. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. During your appraisal process, you should also note the condition of your assets. Cost-effective repairs can then be made before your list your metal dealers business.
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