You're optimistic about the economy and so are we. Now the challenge is to convert business buyers who may have a more skeptical outlook.
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At Gaebler, we think that's a mistake because with adequate preparation and the right sale strategy, this might be the best time to put your auto engine rebuilding business on the market.
Preparing Your Employees
As a business owner, you want to keep you employees informed about your plans; as a seller it's in your best interest to keep your employees in the dark for as long as possible. You're concerned about confidentiality, and rightfully so. However, the longer the selling process drags on, the more likely it is that rumors will begin to circulate throughout your workforce. So at some point you will have to resign yourself to the idea of telling some or all of your employees that you have listed the auto engine rebuilding business on the market. Above all else, it's imperative to encourage your workers to maintain a positive attitude and work ethic. If you're having trouble navigating the employee minefield, consult a business broker for advice.
Broker vs. No Broker
Anyone who has ever sold an auto engine rebuilding 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 auto engine rebuilding business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Timing the Market
Worried about timing? Believe it or not, this could be an advantageous time to put an auto engine rebuilding business up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on auto engine rebuilding businesses. 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.
Given your interest in exit planning and in auto engine rebuilding businesses, you might find these additional resources to be of interest.
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