While you might be enjoying great success in your manufacturing company, you might also wonder exactly how much your site and operations are worth.
If you are considering handing the keys over to a new owner, you would be wise to get in touch with a broker to identify its value. However, before you do, you should learn more about the process. With that in mind, here are some helpful tips on how to sell your manufacturing business.
Document Your Operations
While you and your employees might know the business like the back of your hand, a potential buyer will not. To help them make an informed decision, you must document what your company does and, more importantly, how it does it.
It can provide a prospective owner with confidence that the company can run smoothly once you leave the business. The more insight you can provide about the enterprise and its processes, the more likely you will find a buyer.
Clean the Shop Floor
Dust and debris can naturally generate across a manufacturing site, but you must aim to clean the shop floor before taking a potential buyer on a tour. If your site doesn’t appear to be in the best shape, they will believe your machinery and health and safety standards have also been neglected. It is, therefore, imperative to clean the facility from top to bottom before inviting a buyer to take a look around.
Create a 2D or 3D Floor Plan
To generate increased interest in your manufacturing business and indicate how much square footage a buyer will have to work with, create a detailed floor plan of your site. You can choose from either 2D and 3D floor plans that will offer a birds-eye view of your facility’s layout, which could convince a buyer to make you an offer. You can find a really useful page for professional floor plans online.
Know Why You are Selling the Business
No buyer will want to invest in your manufacturing business if they believe it is unsustainable. One question they will almost certainly ask is why you are selling, and your answer could determine whether they decide to take over the reins or look elsewhere.
Common reasons for selling a business often include:
- A desire to retire
- Other companies to care for
- You need someone to direct the company into the future
- Personal issues that require your attention
If you are selling your business due to financial problems or insubordinate employees, it is unlikely a prospective buyer will make you an offer.
Comply with Various Environmental Regulations
Every manufacturing business will be required to adhere to environmental regulations. For example, your employees will need to dispose of toxic materials to remain environmentally compliant ethically.
If you discover your business has failed to adhere to the law, you must aim to rectify the problem before selling the business. After all, a potential buyer will require you to tell them of any past environmental mistakes you have made before they will purchase your company.