Why deciding to sell your manufacturing company in 2018, rather than waiting, could dramatically change the outcome.
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For several years, Accelerated Manufacturing Brokers, Inc. has educated manufacturing business owners about current market conditions for manufacturing M&A, specifically the effect retiring baby boomers will have on the market. Between 2008 and 2014, scores of those expected to retire postponed as a result of the financial crises and the poor economy in the following years. Manufacturing M&A activity began to increase steadily between 2015 and 2017. During that time, we’ve returned to a Seller’s market. In fact, in 2017 every manufacturing business we sold received multiple offers. While this activity is expected to continue in 2018, recent tax reform changes will likely dramatically increase the number of businesses that come on the market, as sellers seek to exit during a business-friendly, favorable tax regime.
Why You Should Act Now - 2018
The pricing of small manufacturing businesses changes over time and is very much a product of supply and demand. Other factors come into play, but supply and demand are a bedrock in determining how much buyers are willing to pay. For the last few years, quality buyers have outpaced deal flow. As a result, when a quality manufacturing business comes on the market, buyers face heavy competition, which naturally increases prices.
With sweeping tax reform now in place, deal flow will naturally increase, especially given how many boomers have postponed retirement in recent years. Over time, increased deal flow and more buyer choice may lead to lower sale multiples. If you are considering retirement in the next five to seven years, you may want to consider the value of obtaining a better sale price now for your manufacturing business, rather than waiting. Ask your financial advisor to help you determine the difference to your bottom line between selling now and investing the proceeds versus working a few more years. The difference may surprise you.
Find Out What Your Manufacturing Company Is Currently Worth
In order to make the best and most informed decision, you’ll need to know what your manufacturing business will likely sell for in today’s market. Accelerated Manufacturing Brokers, Inc. specializes in selling lower middle market manufacturing companies nationwide. We give our clients the best exposure to the most qualified buyers. Quality manufacturing company business owners come to us to achieve the best results in a time frame that beats the national average. Contact us today for a confidential consultation.
Find out if your company is a good candidate for our program
Click the Register Here button to start the process. Don't delay! Deciding to sell your manufacturing company in 2018, rather than waiting, could dramatically affect your retirement.