Optimizing Business Exits
Selling a Reduction Gears Business
There is a lot of confusion about the best way to sell a reduction gears business in today's economy. 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.
Personal and professional concerns surround the sale of a reduction gears business. In our experience, a common owner concern is how the sale will affect customers and employees.
For sellers who are willing to perform adequate sale preparation, the numbers make reduction gears businesses a solid investment for qualified buyers in the business-for-sale marketplace.
Seller Financing
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized reduction gears business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. It's common for sellers to finance as much as 70% of the purchase price with a payoff period of four or five years, sometimes in the form of a balloon payment at the end of the repayment period.
Broker vs. No Broker
Anyone who has ever sold a reduction gears business has eventually needed to decide whether to use a business broker or go it alone. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your reduction gears business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Preparing Your Reduction Gears Business for Sale
Like it or not, a good business sale takes time. Profitable reduction gears business sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Even though it may take years to adequately position your reduction gears business, the amount of preparation you perform will have direct correlation on asking and sale prices. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
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