A business exit is always a trying experience. But when you need to sell your aluminum castings business in a depressed economy, the challenges can seem insurmountable.
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To sell an aluminum castings business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
In an aluminum castings business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of an aluminum castings business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Timing the Market
Now may be the best time to sell an aluminum castings business. With interest rates at all-time lows, it's easy to see why aluminum castings businesses are an appealing investment opportunity for savvy investors. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
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. Good business brokers are adept at separating serious buyers from the rest of the pack. Never provide detailed information about your aluminum castings business until the prospect has been qualified as a serious buyer.
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