Exit Planning Advice By Market
Selling an Auto Machine Shop Services Business
Forget about what you read in the paper -- auto machine shop services businesses are being sold everyday and the business-for-sale market is poised for even greater growth in the months ahead.
The auto machine shop services business-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.
The business-for-sale market is extremely dynamic. So if you're waiting for the perfect market conditions to sell your auto machine shop services business, you could be waiting a while. If your business is ready to be sold, the time to sell is now. To improve sale outcomes, you will simply need to tailor your auto machine shop services business to today's buyers.
Average Preparation Time
There are no effective shortcuts for selling an auto machine shop services 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. At a minimum, plan on spending six months preparing your auto machine shop services business for the marketplace. If you can afford to wait, we recommend investing a few years in improving your business's financial position before you put it on the market.
Dealing with Buyers
Business sellers sometimes struggle to maintain a positive attitude when dealing with buyers. The questions auto machine shop services business ask during due diligence are designed to alleviate their concerns about the business and should be promptly addressed by the seller. To protect yourself, don't offer an answer until you are sure the information you are providing is 100% accurate. If due diligence drags on too long, your broker may need to intervene.
Signs You're in Over Your Head
Many auto machine shop services business are tempted to save brokerage fees by selling their businesses on their own. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. If you decide to go solo and your business has been on the market for more than six months without a single buyer inquiry, it's time to hire a professional business broker. Lack of buyer enthusiasm or persistence indicates that something is wrong. Hire a broker and conduct a professional appraisal ASAP.
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