How to Valuate & Sell an OEM Company with a Business Broker

Has the time come to sell your OEM company? Your business is your most valuable asset. You’ve worked feverishly to build up your business and grow it to maximum capacity. When it comes time to sell, however, manufacturing companies tend to be more challenging because of the complexity of the organization. There is a lot more to consider when compared to other companies. You have complex machinery, processes, inventory, overhead, production, distribution, strategic partnerships, and many other factors to consider. All of these will affect your company’s valuation and how you approach the sale of your company.

Rather than attempt to decipher your assets, estimate a company value, and sell your company, you are better served to hire an experienced business brokerage to handle the process. At Beacon, our expert team will set a proper valuation for your company, help you determine the right sales process, market your business, find the right buyer, and help you negotiate a deal that will bring in top dollar.

Prepare Your OEM Manufacturing Company for Sale

Staging your business before you put it up for sale is vital. Like any other type of organization, you want your company to be at its very best before you list it for sale. You want to show that the company is sustainable, has a strong customer base, is profitable and there is growth potential. It takes careful planning to strategically position your company to generate the most interest and get top dollar offers.

As part of your selling strategy, you may shift your approach in how you do business to eliminate unnecessary spending, eliminate excessive overhead, and improve efficiencies.  A business broker with experience in OEM manufacturing can help you shape your company and get things in order before selling.

Get a Proper Valuation for Your OEM Company

Having an accurate assessment of what your manufacturing company is worth is a must. However, valuating a manufacturing company can be complex. The type of products produced, materials, processes, assets, orders, contracts, and much more all need to be considered as part of the valuation process. Business brokers are experienced at providing proper valuations and are a great resource to utilize for this process. Business valuators will carefully assess your business’s value, but also allow you the time to focus on operations and making important adjustments to your company before selling.

Find the Right Buyers for Your OEM Company

As an original equipment manufacturer (OEM), you work closely with many different types of organizations. Building these relationships and being a top supplier to organizations puts you in a strong strategic position when it comes time to sell your OEM company. The type of buyers you attract will have a big impact on the type of offers you can expect and how the negotiation process will play out. Business brokers can help you attract the right type of qualified buyers.

Negotiation and Due Diligence

The objective is to get offers. Once you find interested parties, the negotiation process starts. Business brokers can help you qualify leads and negotiate all aspects of the sale of your company. They can help you structure the deal in a strategic way so you get the best result. They will also help manage the due diligence process, ensure all necessary legal documents and paperwork are in order and help you close the deal.

Use an Expert Business Brokerage to Sell Your Manufacturing Company

If you are thinking about selling your OEM company, seriously consider using a business broker. Business brokers are your strategic partner and will work with you to complete all steps in the preparation, valuation, and execution of the sale of your company. Selling your company can be a complex process, and having an expert on your side will give you peace of mind in knowing you are approaching the sale in an effective and strategic manner.

Sell Your OEM Company with Beacon

Speak with Beacon today if you are considering selling your manufacturing company. We work with all types and sizes of OEM organizations. Our team of business brokers will help you assess your company, develop a successful strategy to sell your company, and help you get the most out of the sale. Contact us now to start the process of selling your original equipment manufacturing company.

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