Mastering Niche Market Exit Planning
Selling a Nonferrous Metal Castings Business
Nervous about selling your nonferrous metal castings business? You shouldn't be. Our tips will help you get the highest price for your nonferrous metal castings business, regardless of what's happening with the economy.
These days, the small and medium-sized business market is more confusing than ever before. Although there are plenty of entrepreneurs who want to buy a nonferrous metal castings business, capital restrictions are holding them back.
Many nonferrous metal castings business owners fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
Brokers give nonferrous metal castings business sellers distinct advantages in the marketplace. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Many sellers embarked on their nonferrous metal castings business sale without adequately considering the impact it will have on their families. Unfortunately, families often experience turmoil during a sale even when the primary owner is convinced it's the right decision. The sale of the business will likely result in new family dynamics. Subsequently, selling a nonferrous metal castings business often begins with a family conversation and a mutual decision to move on the next stage of life.
The methods for valuing a nonferrous metal castings business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. As a safeguard, consider conducting appraisals using variations of multiple appraisal methods. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
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