Often the business an entrepreneur has strived to build and grow is their most valuable asset. In many cases the owner’s “exit strategy” will be to sell the business, and they will want the maximum return from this “final dividend.”
A manufacturing business is far more complex than a retail or services business, involving technology, machinery, raw materials sourcing and purchasing, production and operations management, distribution and marketing to a national and global marketplace, among other factors. The employees have specialized skills, the capital equipment is expensive, the logistics are intricate, and both the risks and potential can be greater.
The worldwide competition for a United States manufacturing company can impact its value, both positively and negatively. Demonstrating advantages over competitors is a key element of the value proposition.
Like any business, the manufacturing company must be prepped for the market—like “staging” a house for sale. The preparation for selling a manufacturer, however, is anything but superficial. One of the key values is sustainable, enduring business, from a diverse spectrum of steady reliable secure customers buying products experiencing continuing demand.
It takes time, effort, and expertise to properly position a manufacturing company for the maximum return on investment. A business broker with hands-on experience in owning and managing a manufacturing company is a priceless asset in that process.
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Selling the Small Manufacturing Business