Sell a Business for the Best Price
Selling a Paper Cutting and Drilling Machines Business
We hear from a lot of business owners who are timid about listing their paper cutting and drilling machines business. Despite the mood of the market, we think there are still opportunities to receive a good price for your paper cutting and drilling machines business. Here's what you need to know . . .
You won't find any magic formulas for selling a paper cutting and drilling machines business, especially while the market is struggling to overcome the perceptions created by a down economy.
If your exit strategy involves selling a paper cutting and drilling machines business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Brokers give paper cutting and drilling machines business sellers distinct advantages in the marketplace. First-rate brokers are extremely skilled at communicating your company's strengths to prospective buyers. 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.
How to Identify Prospective Buyers
Many sellers don't realize how many prospective buyers there are for their businesses. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.
Pros & Cons of a Sale to an Employee
Employee sales have pros and cons. A faithful employee may have the motivation and ability to continue to operate the business. 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. Most of the time, employees also expect owners to finance a large portion of the sale. So if you aren't willing to finance the sale or need to get top dollar for your paper cutting and drilling machines business, a sale to an employee is probably not a possibility.
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