The economy isn't the only thing that is uncertain these days. So are iron and steel business buyers, many of whom are waiting to pull the trigger on their next acquisition.
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Eventually, it will the time will come to exit your business. When that happens, your future plans will be dependent on your ability to receive the highest possible sale price for your iron and steel business.
Understanding Market Timing
Now may be the best time to sell an iron and steel business. With interest rates at all-time lows, it's easy to see why iron and steel businesses are an appealing investment opportunity for savvy investors. Sooner or later, rates will rise, increasing the risk for prospective buyers of iron and steel businesses. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
How Much Does It Cost to Sell an iron and steel business?
In an iron and steel business sale, pricing is based on a number of factors, including the costs incurred during the sale. Hiring a broker is a mixed bag because although brokers can increase the sale price, they also take a 10% fee. Professional consultations can also represent a significant expense during the course of an iron and steel business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Identifying Serious Buyers
Unfortunately, many of the prospects you will encounter aren't serious buyers. Even though tire kickers are a fact of life in any sale scenario, they sap valuable time and energy that could be spent identifying more serious prospects. Good business brokers are adept at separating serious buyers from the rest of the pack. Never provide detailed information about your iron and steel business until the prospect has been qualified as a serious buyer.
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