Personal and professional concerns surround the sale of a precision electronics sheet metal fabrication business. In addition to the personal enjoyment you received from the business, you probably have concerns about what will happen to the people who made your precision electronics sheet metal fabrication business a success.
(article continues below)
Success is a factor of preparation, execution and a keen eye for the market. Since your future goals depend on the outcome of your sale, you'll need to have your head in the game from Day One.
Dealing with Your Emotions
Business sellers sometimes struggle to handle the emotions of a sale. Be prepared to experience everything from elation to remorse during the sale of your business. It's important to allow yourself time to process your emotions during your exit. However, when it comes to negotiating a successful deal, there is no room for your personal emotions. To keep the sale on track, you'll need to seek the advice of a broker or another objective third-party counselor.
Pros & Cons of a Sale to an Employee
Although it may seem easier to sell your precision electronics sheet metal fabrication business to an employee, this approach also has some pitfalls. 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. Seller financing is one way to get around the capital deficit of an employee-based precision electronics sheet metal fabrication business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
In a precision electronics sheet metal fabrication business sale, pricing is based on a number of factors, including the costs incurred during the sale. Although they can significantly increase the final sale price, brokers typically receive a 10% commission. Professional consultations can also represent a significant expense during the course of a precision electronics sheet metal fabrication business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Given your interest in exit planning and in precision electronics sheet metal fabrication businesses, you might find these additional resources to be of interest.
If you plan on opening a precision electronics sheet metal fabrication business, these helpul resources may be just what you've been looking for:
If you consider precision electronics sheet metal fabrication businesses to be sales prospects, this isn't the best resource for you on our site. These helpful guides are more appropriate for you:
If you are looking for exit plan advice for a different kind of business, please browse our directory of exit planning guides below.