3 min read
5 Steps to Ensure a Successful Sale
No matter when you plan to sell your business—soon or many years down the road—a few steps now can ensure a more successful future transaction.
9 min read
Sunbelt Marketing : Apr 12, 2023 8:33:00 AM
Imagine this: You’ve spent years — decades, even — pouring into your business. You’ve labored and toiled day-in and day-out to create something truly special, and you’ve made it! Your business is thriving, you’re producing excellent products and bringing in equally excellent profits, and though you’ve experienced your share of bumps in the road, you’ve built an empire you can take pride in.
But now, something’s changed. You’ve built your business, taken care of it, and achieved your goals, but lately, you’ve felt like it’s time to move on to new horizons. Maybe you’ve decided to retire. Perhaps you no longer have that same passion, and you want to try out something new. Whatever your reasons for wanting to move on, you know it’s time to pass the business on to someone else.
There’s one problem, though — you don’t know how to sell a business. You’ve definitely built some solid business skills over the years, but that doesn’t mean you’re ready to broker your own sale. There’s a lot to consider when you’re selling a business, and right now, it seems like an overwhelming prospect.
Does that scenario sound familiar? Well, you’re in luck because Sunbelt Atlanta is here to help! We are a team of expert business brokers with over 70 years of collective experience buying and selling businesses. If you’re looking for a manufacturing business broker, you’ve come to the right place.
At Sunbelt Atlanta, we’re passionate about taking the frustration and headaches out of brokering the sale of your business. We know you’ve worked hard, and we believe you shouldn’t have to wade through the complicated process of selling your business all on your own. We’re ready to partner with you every step of the way so that you can reap the rewards from your years of hard work.
Are you ready to get started? We are too. Selling your manufacturing business doesn’t have to be painful. In fact, we’re here to make it easy!
In this blog, we will explore the process of selling a manufacturing business. We will cover topics such as preparing the business for sale, finding the right buyer, and maximizing the value of the sale. Additionally, we will discuss the services offered by Sunbelt Atlanta Business Brokers, and how they can help business owners get the most value for their manufacturing business. Our goal is to provide business owners with the information and resources they need to successfully navigate the process of selling their manufacturing business.
One of the first steps in preparing your manufacturing business for sale is to clean up your financial records. This means ensuring that all financial statements, tax returns, and accounting records are accurate and up-to-date. This will make it easier for potential buyers to understand the financial health of the business and make a fair offer.
Let’s put it this way: If you’re hiring a chef for your restaurant, are you going to hire the one whose kitchen is tidy and run efficiently or the one whose kitchen seems buried under a thick layer of flour and grease? The first one, right? Of course. Selling a manufacturing business works just the same way. When buyers look for potential acquisitions, they’re significantly more likely to choose businesses that appear well-managed, clean, and efficient.
Here are a few specific elements to pay attention to:
Once you’ve cleaned up your facility, inventory, books, and written procedures, you’re ready to put your business on the market with your best foot forward. A clean and well-kept manufacturing business is sure to stand out to potential buyers, and your manufacturing business broker will have no trouble at all attracting those buyers to you.
You can’t sell your business without a buyer, so it’s important to think about who you want in charge of everything you’ve built. After all, you’ve created a legacy, and even though you’re not going to be directly involved with the management of the company anymore, we understand that you still want to protect that legacy. That’s why it’s important to start preparing for a shift in leadership early.
Of course, part of that preparation comes along with the first step — by cleaning everything up and clearly establishing written records and policies, you set your business’ future owner up for success. But keep in mind, it’s not enough to simply say, “Here you go — now figure it out!” You want to make sure your successor has been properly trained and that their vision for the future of the company is in alignment with yours, even if they’re looking to make changes and bring in a fresh perspective.
Here are a couple of things to keep in mind when you’re preparing for a change in leadership:
And even if you’re not selling your manufacturing company to someone you know, make sure that that person who will be hired or promoted to your position is ready to take on that role. It can be challenging for some business owners to train a successor — you’ve built a company, and it makes sense that you want things to be done your way. But remember — as long as you’ve trained the right person and chosen a successor you trust, your legacy will live on.
Once you start to feel secure and confident that you’re ready to leave the business and let your successor take over, it’s time to get your business assessed! However, estimating the total value of your business is a little bit more complicated than adding up your net profits. In order to calculate a fair valuation for your business — find the best asking price for your company — your manufacturing business broker will need to know a few things:
Additionally, make sure to take stock of your inventory — you’re going to clean it up anyway, and that’s a perfect time to take stock of the total value of everything you have stored. Calculate the value of all of your inventory after you’ve removed anything that is no longer sellable and make sure to report that information to your manufacturing business broker.
With all of the information listed above, your manufacturing business broker will be able to come up with a reasonable estimate of the total value of your business. From there, they’ll be able to share with you a fair asking price — the amount of money you’ll make from the sale of your company. Then, you’ll be able to put your manufacturing business on the market and wait to hear from potential buyers!
After the ink is dry on the final paperwork, you’re sure to feel a sense of pride and relief — you built a business, sold it, and hopefully made a significant profit. It’s an incredible accomplishment, and we look forward to congratulating you when that day comes.
However, in all the excitement, it’s easy to forget that your life is going to look pretty different. You won’t be in the same leadership role you once were, and that kind of significant life change can cause some mental strain. That’s why it’s important to prepare for the change early — that way, when you’ve sold the business, you’ll easily slide into your new role.
To begin preparing to leave, consider what your role in the company will be post-sale. Will you walk away entirely? Will you take on a smaller leadership role? Will you become a shareholder? Think about the amount of involvement and responsibility you want to retain even as you pass the leadership role on to your successor. Whether you want to continue working for the company or wash your hands of the business world for good, it’s best to figure things out ahead of time.
Additionally, don’t underestimate the psychological effects of leaving behind the company you founded. It’s not often talked about, but many former business owners struggle once all the paperwork is filled out and they no longer hold ownership of the company. After all, when you’ve spent years investing your time, energy, and heart into something, it’s natural to become emotionally attached.
Before you sell your manufacturing business and move on to the next step in your life, make sure to prepare yourself psychologically. Consider how you’ll use the time you used to spend at the business and make sure to have a new business, project, hobby, or activity to look forward to. And if you find you continue to struggle emotionally significantly after the inky is dry, make sure to reach out to a licensed counselor or therapist — such professionals are excellent at easing you through major life transitions.
Your health comes first, and that’s why it’s necessary to prepare to take care of yourself once the sale is over! Your life is going to look different, but that doesn’t mean it’s over. Look forward to the new freedom you’ll have once you’ve sold your business and make sure to keep yourself mentally healthy and happy every step of the way.
Last but not least, the most important part of the process of selling your manufacturing businesses is finding the right support. That means working with a manufacturing business broker who understands who you are, what you do, and how to sell your company to ensure a profit and protect your legacy.
Sunbelt Atlanta Business Brokers is a leading business brokerage firm specializing in the sale of manufacturing businesses. With over 25 years of experience, Sunbelt Atlanta Business Brokers have helped numerous business owners successfully sell their manufacturing businesses. They have a team of experienced business brokers who have the knowledge and expertise to guide business owners through the process of selling their manufacturing business.
Services offered by Sunbelt Atlanta Business Brokers:
Sunbelt Atlanta Business Brokers offer a wide range of services to help business owners sell their manufacturing business. These services include:
How Sunbelt Atlanta Business Brokers can help business owners get the most value for their manufacturing business:
Sunbelt Atlanta Business Brokers can help business owners to get the most value for their manufacturing business by utilizing their experience, expertise and industry knowledge to position the business in the best possible light. They use market analysis, strategic pricing, and effective marketing to attract potential buyers and create competition for the business. Additionally, they use their negotiation skills to ensure that the business owner receives the highest price possible for their business.
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