Business Exit Planning
Selling a Machine Tools Rebuilding and Repair Business
We hear from a lot of business owners who are timid about listing their machine tools rebuilding and repair business. Despite the mood of the market, we think there are still opportunities to receive a good price for your machine tools rebuilding and repair business. Here's what you need to know . . .
It's a fact: Successful business sales take time.
Many machine tools rebuilding and repair business owners fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
Preparing Your Employees
Business sellers walk a fine line when it comes to preparing their employees for a sale. On the one hand, confidentiality is critical for a successful machine tools rebuilding and repair business sale. If you keep your employees out of the loop too long, it's inevitable that misinformation will filter throughout your workplace. When that happens, it's best to have a frank conversation with your team rather than allowing rumors to circulate through the organization. Your employees will undoubtedly have many questions about their future with the company. Try to answer their questions to the best of your ability, but avoid making any promises that you are not authorized to make.
It's rarely possible to sell a machine tools rebuilding and repair business in a month or two. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. Before you can list your machine tools rebuilding and repair business, you'll need to invest as much as a year in preparing it for prospective buyers. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.
In a machine tools rebuilding and repair business sale, pricing is based on a number of factors, including the costs incurred during the sale. Hiring a broker is a mixed bag because although brokers can increase the sale price, they also take a 10% fee. Attorneys, accountants and appraisers work for a flat fee that can range from hundreds to thousands of dollars. Likewise, you'll need to consider how much it will cost to promote the sale as well as the lost time it will take for you and your team to navigate the sale process.
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