What Should Be Your Exit Strategy For Selling Manufacturing Business?
According to the careful estimate, the average age of the United States manufacturing business owners is about 60 years. This simply means that manufacturing & engineering companies will change operating hands in the next decade, as these manufacturers enter their retirement phase. There are four possibilities that you can think about. These include:
- Sell your manufacturing & engineering company to a firm that is seeking expansion through acquisition.
- Sell your firm to your competitor.
- Hand over your company’s operations to a younger generation of your family.
- Sell your firm to a group of employees.
If you are thinking about these things, bear in mind that, all or some of these options may not be viable for you. You will have to work on creating your own exit strategy. This is a surefire way to make it possible to sell your firm for the highest possible price.
Will You Comprise On Your Business Values?
Every business owner has some values which they strictly care about. For example, some owners give utmost importance to customer satisfaction. When you are looking for a buyer who is ready to buy your firm on a full asking price, you have to be careful about some important things. These things include the following:
- What are the intentions of the potential buyer?
- Will they outsource or offshore some or all of the jobs?
- How will they maintain the quality of services?
- What goals do they want to achieve?
- Will they want to hire their own employees?
If a buyer doesn’t give you a clear idea about any of the things mentioned above, it’s a warning sign. In fact, most owners may pass the offer even if the potential buyer is buying for a full asking price. This may sound a bad choice, but there is a substantial reason behind making this decision. Sellers pass the offer because of the intentions of the buyer. If a buyer doesn’t care about customer satisfaction and maintaining the same standard that the owner has worked hard to maintain, it is clear that the buyer is more interested in making money. In this case, selling the manufacturing & engineering company to a buyer like this is like putting your customer relationship second. In simpler words, you would definitely not want to take your money and run without caring about what happens after you have your money. The new buyer may ruin your company’s name by compromising on the quality of services. That is the reason why you should stand on principle and find a qualified buyer who would not put your business values aside.
Hiring A Broker To Have An Exit Strategy
A surefire way to make sure you exit your manufacturing & engineering business with satisfaction and lots of cash, consider hiring an agent. A broker can also help you find a buyer who really cares about your business values. Beside broker, you will need other professionals like tax adviser, legal attorney, and accountant to create a painless exit strategy.
In short, if you are considering selling your firm in the next 5-10 years, start planning from today. And take the above-mentioned factors into consideration to have a solid exit strategy.