How Do I Sell My Consumer Products Business?
Selling your consumer products business can be a competitive process. Strategic Business Brokers Group licensed brokers have over 30 years of combined experience to help you sell your business for a competitive price. Consumer product business brokers are here to answer all your questions and guide you through the selling process from beginning to end.
There are a variety of consumer products businesses. Distribution, retail, and manufacturing consumer products businesses make up the majority and Strategic Business Brokers Group brokers have sold multiple consumer products businesses. Strategic Business Brokers Group will help you understand the selling process and provide you with the expertise needed to navigate the selling waters.
DETERMINE SALES PRICE
The first step in selling your consumer products business is determining the sale price. There are many small steps you need to take to get the desired price at the time of selling. Consumer products businesses will often be valued by their discretionary earnings. These earnings are the pre-interest and pretax profits before non-cash expenses, non-related income expenses and any one-time investments. The discretionary earnings amount will allow you to see how attractive the opportunity is to a potential buyer and support the sales price. Accurate books and financial records will be a benefit in securing an accurate valuation.
MAINTAIN YOUR
EQUIPMENT
Any equipment you decide to sell with your business needs to be in working order. Conveyor belts, boxing machines, trash compactors and any other mechanical devices need to be serviced and kept working to get the best price for your business. Buyers want to come in and continue operating day one, and purchasing reliable equipment along with the business helps this happen.
If you have any equipment that is on the verge of breaking down, you must disclose this to the buyer to prevent any issues after closing. This does not mean you need to purchase new equipment before the sale, just keep your equipment in the best shape possible.
