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Selling Your Business From A Buyer’s Perspective

Selling Your Business
⏱ Reading Time: 2 minutes

At Accelerated Manufacturing Brokers we are not just committed to getting the job done when it comes to selling your business.

We are also committed to making sure you, the seller, are prepared throughout the entire process, particularly when it comes time to meet potential buyers.
It should come as no surprise to a seller that a buyer would be younger with many thoughts on how to grow a business – any business. What may be harder to wrap your head around is that these individuals, while interested in your product, are most interested in the numbers. Based on our experience, most of our sellers started out as experts in their product field and later, out of necessity, became business people. Our buyers on the other hand are, in most cases, business people first who will learn the craft/trade later.

Here’s a short list of topics of greatest interest to them – in no particular order:

  • Customer concentration

    – A diversified customer/industry base is always preferred.

  • Capacity

    – How much growth can your current physical plant & labor force sustain? At what sales level would you need to add an additional shift?

  • Capital expenditures

    – What type of investments have you made in the last 1-5 years? What would you anticipate will be required in the next 1-5 years?

  • Bottlenecks

    – Are there any bottlenecks in the manufacturing process that negatively impact efficiency?

  • Competitive landscape

    – Where would a customer go if they didn’t come to you? What differentiates your product, your process from competitors? What is your current market share?

  • Gross profit

    – What is the gross profit on your product line(s)? What percent of sales does each product line contribute to your overall sales?

  • Industry information

    – For example – have building codes or regulations changed that will positively or adversely affect your business?

  • Managers

    – Be prepared to discuss your management team – regardless of how small…who does what, who does what you do, etc.

  • Employee tenure

    – How much work life your team has, in general, will be a concern for any buyer – they’ll take comfort in knowing that everyone won’t be retiring in 2-3 years.

Knowing how to communicate effectively with a potential buyer is critical to the selling process. Be prepared when selling your business and you’ll be more effective.

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 is also the host of the 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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