Here are 5 ways to increase your sales price when selling your industrial distribution business.
Selling your industrial distribution business (distributors in industries like metal, building specialties, supplies, tools and equipment, and the like) presents some unique challenges.
Here are five ways to greatly increase the price when you sell your distribution businesses:
Be profitable. Distributors must also focus on gross profit. Then lower expenses and improve earnings. Be able to explain how these decisions (and the results) will transition to the new owners. Keep focusing on profits throughout the sales process.
Systems in place. A quality system is when “ordinary people get extraordinary results every time.” Be ready and able to show how your marketing systems and sales systems work. Document and refine your systems. For instance, how calls and emails are answered, how orders are taken, the process to fulfill orders, shipping processes, accounting and of course collections. Don’t forget purchasing either. Proper purchasing makes money.
Great people Hire and retain key employees, who are willing to stay at least 2 years, running your proven processes. These employees also have valuable institutional knowledge and will be able to reassure your current customers that it will be “business as usual” with the new owners.
Unique Service Offerings Have a reason Amazon or the like is not going to replace you with a low cost competitor operating out of a barn in South Dakota. Usually this involves customization, delivery advantages, before or after the sale service, etc.
Choose a Partner to Help You Sell Use an experienced business broker to guide the sales process so you can focus on your business. The broker will also protect your confidentiality and make a market with multiple buyers which creates an auction environment — and the highest price for you.
The Harvest Business Advisors team is available to discuss your specific business situation – whether you are ready to sell now or have just started thinking about selling your business. It would be our pleasure to learn more about your business! Connect with us at info@HarvestBusiness.com or 877.838.4966.
Consider downloading our e-book “Top Ten Ways to Increase the Value of Your Business Before You Sell” to help answer some of your questions
Clients choose Harvest Business Advisors for our accurate business valuations and our consistent ability to deliver a high price as part of a smooth exit transaction.
Harvest Business Advisors provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia. Connect with us at email@example.com or 877-838-4966 to discuss selling your business, ordering a business valuation or buying a business.