The process of selling a manufacturing business is a bit complicated. It is a fairly complex transaction that requires a lot of preparation and market analysis. Failing to do due diligence can cause the sale to drag on for years, or you have to settle for a much lower price than expected. The solution to ensuring the sale goes smoothly lies in working with a business broker for manufacturers San Diego trusts.
Selling a manufacturing business involves multiple challenges that are unique to your industry. For example, most buyers will typically have to be licensed engineers. Naturally, this narrows your purchaser pool significantly. Exceptions can, however, be made if a buyer has an existing manufacturing company or experience in the field. All the same, you will need a business broker for manufacturers San Diego recommends to screen each potential buyer. Understanding the basic steps that a business broker will follow when selling your business will help you prepare for the sale better. Here are the key stages.
Writing a business summary
One of the first things you should do when getting ready to sell is to create a 10 to 20-page business summary. This should outline the relevant information that buyers will want to know. Creating this document upfront helps weed out unreliable buyers. Your business broker in San Diego will help you create a comprehensive business summary that offers buyers everything they need to determine if your business is what they need.
Get a business valuation
The next thing you must do is know how much your business is really worth. This, too, will require the input of a business broker. First, your business broker will develop an accurate valuation. Then, using their market knowledge and experience, the broker will further help set a fair selling price.
Find interested buyers
Getting your business listed is the next step. This part is a tad challenging because the identity of your manufacturing company has to be kept a secret. It can be hard to entice buyers when they don’t know what they are buying. The good thing is business brokers have more experience and will use blind ads to help you find the best buyers. The broker will also reach out to potential buyers already in their network. That helps speed up the sale.
These are the key steps to be taken when selling a manufacturing business. Always take time to discuss your options with a business broker for manufacturers in San Diego. Let your broker know that upfront if you don’t want to be involved in the business after the sale. The broker must help you realize as many of your wishes as possible in order to earn their commission.