Business Exit Planning

Selling a Machinery Liquidators Business

You've learned a lot during your tenure as a machinery liquidators business owner. The next step is to position your business for the demands of the business-for-sale marketplace.

The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Capital is scarce and many buyers simply can't afford the entry requirements for a machinery liquidators business.

For sellers who are willing to perform adequate sale preparation, the numbers make machinery liquidators businesses a solid investment for qualified buyers in the business-for-sale marketplace.

Workforce Concerns

Business sellers face a dilemma when it comes to their employees. The more people who know that the business is on the market, the riskier the sale becomes. However, the longer the selling process drags on, the more likely it is that rumors will begin to circulate throughout your workforce. When that happens, it's best to have a frank conversation with your team rather than allowing rumors to circulate through the organization. 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.

Sale Preparation Timeframes

There are no effective shortcuts for selling a machinery liquidators business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. 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 machinery liquidators 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.

Legal Concerns

In a machinery liquidators business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . By the time the deal reaches the final contract, many of its features are set in stone. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary