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manufacturers considering retirement

As manufacturers considering retirement, you’re being hit with uncertainty from every possible direction including: COVID, government-ordered shutdowns, the pending presidential election and the possible resulting tax implications.

However, it’s not all bad or uncertain news for manufacturers seeking to exit. There are still plenty of quality buyers seeking acquisition of manufacturing companies. As an M&A professional selling nationally and specializing in manufacturing, I can tell you that we’re busier than ever and are receiving, in some cases, full list price offers for our clients.

Strong buyers are still outnumbering good businesses on the market

This is so at least in the manufacturing sectors, so you should not be afraid to start the process now. We’re STILL in a Seller’s market. Here are some things to consider and questions you should ask before engaging someone to help in the acquisition of your company:

Does the M&A Intermediary or Broker understand manufacturing?

Specializing in manufacturing makes a difference. You don’t go to a dentist when you need heart surgery. A specialist is engrossed in the industry and likely deals with more professionally qualified buyers than a non-specialist.

Do you have to pay money upfront to list your business or get an opinion of value?

Companies charging exorbitant fees upfront typically take any type of business they can get. Therefore, they don’t have a vested interest in your company getting acquired.

Taking fees from companies they know they can’t find a buyer for helps to pay for their overhead. Ask if the fee they charge guarantees the acquisition of your company. The answer is NO.

If someone is charging money upfront to provide their opinion of your company’s value, perhaps they’re in the opinion business, not the business of assisting manufacturers in exiting their companies.

How does the intermediary or broker intend to protect your confidentiality in the marketing process?

For most manufacturers considering retirement, the disclosure that they are in the process of marketing their company to their employees, customers, competitors, and suppliers can be incredibly damaging to the business. Most brokers disclose the name and location of their clients way too early. Find out exactly how a firm deals with confidentiality issues before you hire them.  Check out my video on confidentiality here.

If you’ve been considering retirement, but have been concerned about the current market, we’d be happy to provide additional data on the subject. Here’s what you need to know about us:

  • We never charge money upfront
  • We’ll close on over 98% of businesses we list
  • We’ve got a 25+ year track record in the manufacturing industry
  • Consultations are always complimentary and with no pressure
  • We are experts at maintaining confidentiality during the entire process

For manufacturers considering retirement, to learn more, please contact me HERE.  We’d love to hear your story and provide you some feedback.

About Frances Brunelle

Frances Brunelle is the founder of Accelerated Manufacturing Brokers, Inc., which specializes in the sale of lower middle-market manufacturing companies nationally. Fran and her team help to ensure the continuity of U.S. Manufacturing by transitioning ownership to the next generation of entrepreneurs. Recently Fran was named to 2020 Most Influential Women in Mid-Market M&A (Mergers & Acquisitions). Fran will also be the host of WAM (Women and Manufacturing) podcast, a Jacket Media production. Fran writes on topics that help manufacturing business owners prepare their companies for sale and navigate the sale process to ensure a positive financial result in support of their retirement.

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