Knowing how to sell a manufacturing business in Asheville — successfully — involves a few important considerations. As you are likely aware, the manufacturing industry had just started gaining momentum before the pandemic, and although manufacturing businesses are beginning to regain their footing, businesses everywhere continue to face an ever-changing environment. Here, we have identified some key points to consider when selling a manufacturing business in Asheville:
Maximize Your Manufacturing Business Valuation
Obtaining professional business valuation is absolutely essential for selling any business, and the following tips are specific for maximizing the value of a manufacturing business in Asheville.
Staff Training and Upskilling
Buyers like to know they are walking into a well-run manufacturing business, and that means well-trained employees. A foundation of advanced and consistent training for employees shows buyers that your manufacturing business is organized and reliable. If you do not already have a consistent employee training program in place, it is never too late to start.
Additionally, does your engineering workforce include people with more technological expertise versus strictly mechanical and electrical engineers? Depending on your timeline to sale, it may be worth the investment to “upskill” your current workforce. In a 2019 industry survey, 77% of workers said they are willing to learn new skills now or completely retrain to improve their future employability.
Remember, higher profits = higher value. If you can show a steady increase in profits and a business model that shows future growth, buyers will want to buy your manufacturing business. So yes, part of how to sell a manufacturing business is to sit down and brainstorm growth strategies. Particularly in the manufacturing industry in Asheville, avoid the temptation to hunker down. Instead, seek to build flexibility on all fronts: look to operational efficiencies, launch new products or services, and enter new markets. Think about how you can grow your business in Asheville, start taking steps to make it happen, and get your plans on paper. This will be the hard evidence of your growth plans and will help when you begin meeting with potential buyers.
Consider Why You Are Selling
There are many reasons to sell a business. Why you are selling your manufacturing business will help inform how and when to sell.
Perhaps it will be a family succession, or you want to give an employee the opportunity to buy the business, or you are dissolving a business partnership; regardless, if you have determined it is time to retire, it is essential that you work with an experienced partner to ensure a smooth transition, maintain business continuity, and preserve your business legacy and reputation.
Perhaps you have another investment opportunity you want to take advantage of. If you are not ready to retire from the manufacturing business and are still committed to the growth of your manufacturing company, but you would like to free yourself up enough to invest in another business or project, a strategic buyer like a private equity firm may be interested. In this case, you maintain income and benefits, but reduce exposure and gain financial security.
Perhaps you are not ready to launch an exit strategy, but you need to liquidate. Maybe life has presented you with circumstances that require an influx of cash. Here again, finding a strategic buyer opens up valuable options. Look for an upfront liquidity event that allows you to keep your job and ideally offers you a minority stake in the business. This provides your financial security along with long term income and growth opportunities.
Secure an Experienced Professional Advisor
By including a professional business advisor’s perspective on the financial and operational aspects of your manufacturing business, you can identify where you are succeeding, where you may need to improve to reach your ultimate goals, and how you might specifically make those improvements. Furthermore, when considering the various reasons for wanting or needing to sell, it is wise to employ a business broker or advisor with a large network of potential buyers.
All of this is where Viking comes in, as we put our clients first and ensure the most successful transitions and exits for our clients. Utilizing a proven approach to business valuations, our advisors have a wealth of experience buying and selling businesses in Asheville and beyond. Our closing rate is 4x the industry average, and businesses we represent sell for, on average, 96%+ of their asking price.
Viking’s local business advisors can help you understand how to sell a manufacturing business in Asheville. We can help identify where your business stands today and how far you need to go to achieve your goals. Contact us today for a no-cost, no-obligation valuation.