Selling Your Manufacturing Business
Small Manufacturers Traverse Lean Manufacturing Getting Ready to Sell the Company
Just as Baby Boomers on the manufacturing plant floor are getting ready to retire, so are the owners. More than 5,000 small manufacturing operations (with annual revenues between $2M – $20M) will either close their doors or find new owners in the next five years. Some of these owners are motivated to keep the business running for their seasoned and experienced employees. Others really want to “cash-out” after decades of hard work. What few of these founder/owners consider is what they can do over the next year to help their…
Read MoreManufacturing Business Seller Tips for a Successful First Buyer Meeting
Making the decision to sell your manufacturing business is a big step. Actually meeting a prospective buyer in person for the first time can feel like an even bigger step. That’s why it’s wise to prepare properly to ensure the buyer meeting goes smoothly. Here are some pointers on what to do before, during and after the meeting. Before the Buyer Meeting As Entrepreneur advises, it’s critical to know whom you’re meeting with. Is it the prospective buyer — or his or her broker or advisory team? Keep in mind that…
Read MoreShould You Sell Your Manufacturing Company Without a Business Broker?
You’ve worked hard to build your manufacturing business. For years, you’ve put in the hours, the money and the dedication required to keep growing it. And now it’s time for a new chapter in your life — whether that’s starting a new venture or enjoying your retirement. But one question you might be asking yourself at this crucial crossroads is, “should I sell my manufacturing company without a business broker?” Of course, there are advantages and disadvantages to doing so. In this article, we’ll offer some pointers for you to…
Read MoreBenefits of Selling Your Manufacturing Business to a Private Equity Firm
If you’re considering selling your manufacturing business, you might be thinking about selling to a private equity firm or private equity group. As Inc. explains, a private equity firm — or PE firm — operates an investment fund that usually lasts for around 10 years. Because its investors want an ROI that’s greater than the normal stock market return, it looks for opportunities to invest in certain types of companies. In general, these companies: Operate in an expanding market. Have solid management teams and plenty of opportunities. Lack the capital to take…
Read MoreHow to Emotionally Prepare for Your Manufacturing Business Exit
Selling your business is an exciting process. Yet the prospect of letting go of the business you’ve invested your money and time — not to mention your blood, sweat and tears — into for so many years can also be daunting. That’s why you need to prepare yourself emotionally for your manufacturing business exit. Here are some points to consider. Let Go of Your Manufacturing Business When you’ve been involved with the founding, running and expanding of your business for years or even decades, it’s only natural to feel…
Read MoreThe Dangers of Selling Your Manufacturing Company to a Family Member and Financing the Deal
According to the Conway Center for Family Business, family businesses are responsible for 64 percent of the U.S. GDP. Moreover, they create 78 percent of all new jobs and generate 62 percent of the nation’s employment. Clearly, family businesses are nothing short of the backbone of America. Family – A Risky Succession Plan Despite the fact that 75 percent of family-owned companies intend to pass ownership to the next generation, 43 percent do not have a succession plan in place, as Forbes points out. If this sounds familiar, it’s time to give some…
Read MoreWhat to Expect During Due Diligence
The process of selling your business is long and complicated — and that’s to be expected. After all, you want to get full value for your company, and the buyer wants to have an overview of every aspect of the business to determine whether or not it’s the right transaction for him or her. For this reason, a considerable amount of time and energy goes into the due diligence process. What Is Due Diligence? As Investopedia explains, due diligence is an audit or investigation of an investment to confirm all of the…
Read MoreIs Now the Right Time to Sell Your Manufacturing Company?
According to Investopedia, approximately 10,000 Baby Boomers are retiring each day. If you’re one of them, you might be thinking of selling your manufacturing company so you can enjoy your golden years in comfort. At the same time, perhaps you’ve spent the past decade building your company and are ready to sell it so you can take on a new challenge. Regardless of your reason for selling your manufacturing company, if you want to get a good deal, there are several factors to consider. Tax Legislation Tax legislation can help create favorable…
Read MoreWhy Hiring an M&A Specialist Is Important
When you’ve decided it’s time to sell your business, you might be undecided as to whether you should hire a specialized intermediary or try to sell your company yourself. As professional business brokers specializing in the manufacturing sector since 1994, we cannot emphasize enough how important it is to work with an M&A specialist. Here’s why. An M&A Specialist Will Streamline the Process Most business owners only ever sell one business in their career. And since so much goes into putting together a good deal, the whole process can be extremely…
Read MoreWhat’s Trending in M&A for 2019?
M&A continues its rollercoaster ride of activity as we approach the end of the third quarter in 2019. Deals in mining and aerospace are reaching all-time highs while oil and gas have stalled. Overall, the IBBA’s Market Pulse Report indicates manufacturing remains one of the top in-demand industries for M&A in the lower middle market. Below are manufacturing M&A highlights in the first half of 2019. M&A in Mining M&A in metals & mining has remained relatively stable throughout the first half of 2019. Some representative transactions include the…
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