In a down economy, many base metals business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of base metals businesses that are actually for sale.
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In today's market, there is still plenty of room for base metals businesses that demonstrate solid earning capacity and a robust market position.
Dealing with Buyers
Buyers can present challenges, especially during the due diligence stage. The questions base metals business ask during due diligence are designed to alleviate their concerns about the business and should be promptly addressed by the seller. Avoid answering buyer concerns with vague generalities. Instead, be as specific as possible, even if it means doing additional research before offering a response. If due diligence drags on too long, your broker may need to intervene.
Signs You're in Over Your Head
Many base metals business are tempted to save brokerage fees by selling their businesses on their own. Without brokerage, the risk of your sale going off-course is increased. Generally, listed businesses should generate interest within a few months. When buyers fail to exhibit substantive interest, it could indicate unrealistic pricing or an inferior selling strategy. The remedy is professional brokerage or a consultation with more experienced sellers.
How to Identify Prospective Buyers
Many sellers don't realize how many prospective buyers there are for their businesses. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.
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