My turn fo look for opinions

Well, how times change.... New territory for me.


Most of you know my situation and why I want to sell my business/product lines, so I'll skip that part.


I'm pondering whether or not to put notification on my home page that I want to sell. www.newbould.com


What do you see as the pros and cons of doing that?

Hi RJ,

I am familiar with your general situation but not really the details and specifics. I think the biggest disadvantage of just putting a "for sale" sign on your website is that potential customers might be concerned about future support. I don't know how "serious" your current situation is (as I understand, you have limited time) but I would suggest working through a broker. In order to move this process along rather quickly, you'll need some good referrals (of which I, unfortunately, don't have any) as I'm sure there are ones out there just looking to make a fast buck and then there are more honest ones. Unlike real estate where the laws and agreements favor the seller's relationship with the agent, I don't know if that holds true for business brokers. I'm sure the devil is in the details.

I wish you well,
The Dude

Not the website, no. Nothing that might impair the goodwill built up or value as a 'going concern' should be in the plan.

"PM" is public enough - perhaps already more so than you/we realize.

An energetic, well-connected, broker with greater focus on success, 'soon', than wish to lay back and let publicity do the work - someday, maybe, and almost certainly too late for best return - should prove far the better solution.

JM2CW

Bill

Not on your website. I think that'd give a negative impression.

Is there someone local you know and trust and that knows enough about what you make that could talk to, and maybe show around, potential buyers?

Perhaps an advert in a reasonably large national industrial magazine with contact to "this person you trust". Of course you (and Perje?) have the right to say yay or nay.

Probably the same in the USA but here industrial magazines get read by many large companies too and they might consider it an investment. You're looking for people with money to use and spend.

I'm in doubt as to whether the name of your company should be mentioned before contact with potential buyers. It might attract unwanted attention.

You no doubt know company's that have a similar product line to what you make. I would put feelers out to them and see what the interest is. That way you wouldn't have to deal with all the tire kickers that just want to come see your shop.

As Monarchist says, this is a very public site, so if you think that your being "disadvantaged" by your condition will compromise an optimal sale, then perhaps deleting this thread makes sense. Can we presume that the ideal outcome is a fairly priced sale to benefit Perje?

If you/she feels she can't represent the business properly, perhaps a broker with good references would help. Is there a FL PM member you've dealt with who might do a good job, for a small percentage? Would it be worth contacting the Mitutoyo's, Starrett's, Fowler's? [is Fowler still a real company or just an import front end?]

I agree on not putting it on your website.

I would think you want your competition to know, but not your customers.

If I were an interested buyer I would be concerned the advertised sale could hurt business/reputation. I would atleast try to use it to my advantage to negotiate a lower price.

I know you advertised it for sale here before and I think we spoke and it was out of my range/not a fit for my skillsets.

You might advertise it here with some basics about included assets, market position and net/potential net. Kind of a what's it worth/make an offer/find me a buyer kind of deal.

I don't think anyone's going to tell you your business has a low value.

OK... Y'all have convinced me to not put it on the site.

I have a couple of qualified buyers who are interested, but I lack being prepared to answer the questions which would give them a handle on coming to a fair price. With my low energy level it's been difficult to put that all together..... Gotta find a way,

Thanks to all who answered my question. One of the problems/benefits of having an inventive mind is that one tends to look at all approaches, even those who don't appear to have much merit. It's a double edged sword.

rj newbould said:

OK... Y'all have convinced me to not put it on the site.

I have a couple of qualified buyers who are interested, but I lack being prepared to answer the questions which would give them a handle on coming to a fair price. With my low energy level it's been difficult to put that all together..... Gotta find a way,

Thanks to all who answered my question. One of the problems/benefits of having an inventive mind is that one tends to look at all approaches, even those who don't appear to have much merit. It's a double edged sword.

Click to expand...

With those challenges of declining energy and focus, I'd suggest that one of Patton's adages applies:

" A GOOD plan, violently executed right now, will always beat a better plan delayed a week. "

We hope you have more than just a week or three - but as you say - it is already getting harder.

If it is already past the time you have the resources to DIY negotiations, focus instead on finding a trustworthy Executor or Broker who will do the best for Perje as can BE done.

Time really is "of the essence" in small operations. String it out, it will run towards zero value at a scary rate.

No illusions. Just the best as can BE done. And sooner, not later.

Bill

A fair market value appraisal of equipment and a couple years of tax returns would work in a pinch.

rj newbould said:

OK... Y'all have convinced me to not put it on the site.

I have a couple of qualified buyers who are interested, but I lack being prepared to answer the questions which would give them a handle on coming to a fair price. With my low energy level it's been difficult to put that all together..... Gotta find a way,

Thanks to all who answered my question. One of the problems/benefits of having an inventive mind is that one tends to look at all approaches, even those who don't appear to have much merit. It's a double edged sword.

Click to expand...

I hear you on that mind part. The worst "curse" is that the smart people tend to dwell on reasons why something won't work. I've always though it helps to have a certain amount of stupidity to help foster innovation (i.e. you're not supposed to think "this can't work"). Biggest reason for me why I'm still working for others (thankfully only part time now and working for myself the other part).

Honestly, if it's a functioning business and has stability (leased space, employees, proven customer line, etc.) it should come down to the tangibles: reports (P&L, balance sheet, etc.), verification of all of that stuff and a few "intangibles": buyers interest, what's the future look like, etc. A buyer of this kind of business is looking at it exactly like a machine (he wants to turn the crank and have money come out as quickly and easily as possible).

On the other hand, if it's more of a "product line" and some equipment (no leased spaced as it's in your house and no employees) then it gets stickier and more likely a sale based on assets (equipment) and/or "perceived" value of the future sales (what they can do with the intellectual property, etc.).

Here's a suggestion: You or your spouse get in touch immediately with someone from your local SCORE chapter. They helped me out immensely when I was looking at buying a business (unfortunately the middle of the recession when my excellent credit was still not enough). Ask if they have someone specializing in M&A; that's the person you want.

Good luck,
The Dude