Business Exits By Industry

Selling a Cutting Oils Business

The decision to sell your cutting oils business isn't something that should be taken lightly, especially these days. If a business exit is on the horizon, you'll want to check out our suggestions for staying ahead of the market.

Business-for-sale markets are less dependent on economic conditions than most sellers think they are.

Although it takes hard work and dedication, if it's time to exit your cutting oils business there is a good chance you can sell it for a good price -- even in today's market.

When the Sale Goes Off-Course

Many cutting oils 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. As a rule, no business should sit on the market for more than six months without attracting the interest of at least a handful of qualified buyers. When buyers fail to exhibit substantive interest, it could indicate unrealistic pricing or an inferior selling strategy. Hire a broker and conduct a professional appraisal ASAP.

Selling a Cutting Oils Business to an Employee

Employee sales have pros and cons. A key employee may seem like a natural sales prospect. The time and expense of locating the right buyer will be nonexistent and you won't have to spend weeks showing the buyer every square inch of the company. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based cutting oils business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.

Laying the Groundwork

Effective cutting oils business preparation focuses on communicating value to prospective buyers. In our experience, it pays to solicit the advice of a professional business broker as soon as possible. A good broker will guide you through the preparation stage and make sure you've covered all the bases. At a minimum, you'll want to position your business to receive the highest possible sale price, prepare a packet for prospective buyers and perform an initial appraisal before you put your cutting oils business on the market.

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