Small manufacturers, hard-working dedicated entrepreneurs, often shy away from talking about (or even thinking about) an exit strategy. By then, it’s too late.
Perhaps the market soured, a large client goes with another vendor, or worse a health crisis forces liquidation, leaving millions of dollars on the table, from what could have been a lucrative transaction for a lovely retirement.
Making The Decision to Exit
A sixty-year-old manufacturing business owner, in great shape, can reasonably understand that steps must be taken to hand over the company eventually.
Over the decades as a dedicated manufacturing broker, we have learned the exit strategy is far from solely a financial or business decision. Growing a company is similar to rearing children. At some point, parents need to let their children become independent adults.
Without owning the company there is a great fear of an “empty nest” syndrome. Who would this manufacturing business owner be without the company? The very question evokes fear, denial, anxiety. We understand. Check out our article "How to Emotionally Prepare for Your Manufacturing Business Exit."
Now rather than waiting for something to “happen” which forces a fire sale, best to start taking the needed steps for a planned exit strategy.
Get Help with Your Exit Strategy
Most often small manufacturers want to sell their business in the open market and without a broker to help navigate legitimate buyers. Doing this independently will take months of time, effort, and potentially dangerous information can be shared which damages the company’s operation.
Obviously a profitable business will be attractive to buyers and sell more quickly and when assigning a value, the assets and goodwill are incorporated, maximizing the return to the owner.
Because so many brokers charge an upfront fee for the manufacturing business listing, they are being paid before the work is done. At Accelerated Manufacturing Brokers, we don’t take our fee until the business sells. Our motto is to get our clients across the finish line with an exit strategy.
We spend time grooming the manufacturing enterprise for sale; we know what makes a company attractive to potential buyers. Our comprehensive database makes the sales cycle much faster. Contact us with any questions.