January 20, 2021  
 
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Selling a Cloth Cutting Business

There's a right way and a wrong way to sell a cloth cutting business these days. We'll tell you how to keep your sale and your future plans on track.

Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
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Qualified buyers are constantly looking for attractive cloth cutting businesses. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.

Sale Preparation Timeframes

There are no effective shortcuts for selling a cloth cutting business. For starters, the financials need to demonstrate a track record of profitability and growth. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a cloth cutting business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.

Handling Unexpected Outcomes

Every business seller dreams of a fast sale and a fat payday. Ultimately, many sellers find that the market is unable to deliver their anticipated outcomes. Surprises are inevitable, so to minimize the disappointment you will need to prioritize the outcomes you require from the sale. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.

Why Confidentiality Matters

In the business-for-sale universe, publicity translates into risk. If you are rigorous about maintaining a confidential sale, there is little risk in putting your cloth cutting business on the market. But if word leaks out to the wrong people, your competitors can use that information to steal business and damage your credibility. Maintaining confidentiality isn't easy, but without it you won't get top dollar for your business. In a worse case scenario, a profitable cloth cutting business can be reduced to one that is struggling to survive. Brokers and consultants can mitigate the risk by implementing confidential sale techniques.

More Exit Planning Articles

Given your interest in exit planning and in cloth cutting businesses, you might find these additional resources to be of interest.

Marketing a Cloth Cutting Business

Role of Location In Selling a Business

Family Business Exit Plans

Selling Part of a Business


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Still have questions about selling a cloth cutting business? Ask away and we'll do our best to get you a timely reply. We also welcome any tips or advice you'd care to share with others.


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