The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Although there are plenty of entrepreneurs who want to buy an aluminum business, capital restrictions are holding them back.
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The business-for-sale market is extremely dynamic. That's why we think it's important for aluminum business owners to know that it's possible to sell a business in any economy. The key is to go into the sale with your eyes open and with complete awareness of market condition.
Advantages of Hiring a Broker
There are many reasons why hiring a broker makes sense in aluminum business sales. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Timing the Market
Now may be the best time to sell an aluminum business. Although the economy is generally struggling, low interest rates make aluminum businesses more attractive to entrepreneurs who want to get in the game. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. At Gaebler, we recognize the value of timing the sale of your aluminum business. But we think it's more important to properly position your business for current market conditions -- whatever they may be.
It's not unusual for aluminum business sellers to feel overwhelmed when they negotiate the sale of their business. A solo negotiation is a surefire way to may a tough job even tougher. A negotiation team comprised of trusted advisors and senior business leaders is essential in helping you devise a winning negotiation strategy. More importantly, a negotiation team can serve as a sounding board -- an objective presence that prohibits your personal emotions from clouding your judgment or sabotaging your efforts to negotiate a successful deal.
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