A rich heiress has decided to make you her boy toy. You want to train full time for the Ironman Triathalon. Or maybe your kids have grown up, your debts are paid and you are tired of the hassle. Whatever the reason, you wish to dispose of your printing business and pursue new dreams.
Assuming you are not under financial pressures, you can either attempt to sell the business as a going concern, or you can liquidate your assets in an orderly manner. If you can find someone to buy the business lock stock and sales manager, that is Nirvana. There is but one transaction (although the accountants and lawyers can certainly find ways to complicate things), your long-time employees will keep their jobs, and that entity into which you poured so much of yourself lives on!
However, let us be aware of a few facts of life. A printing company, big or small, is generally highly personal. You and a few key people are what your customer values. There is a certain goodwill factor, but the industry is brutally competitive and in transition. Thus, goodwill often fades quickly. A prospective purchaser will only pay for goodwill in very special circumstances.
Moreover, if you have been in business a number of years, you have acquired a number of assets which continue to be productive but are of value only if they are sitting in your shop, free of debt (and monthly payments). The prospective purchaser will not wish to pay for surplus or out of date equipment. It is therefore difficult to find a buyer for a business who has the specific requirements which you, and only you, can meet and who has the ready cash.
What you will more likely do is break up your assets and sell them to buyers who particularly value what you have to offer. The "intangible assets" (your trade name, customer list and perhaps even your telephone number) are typically of interest to an established printer who has excess capacity. Productive sales people are in great demand and the purchaser will find a way to give you every incentive to stay on in a limited role and ensure that last year's sales continue.
The fixed assets include not only your plant machinery and equipment, but your office furniture, shelving, material handling and safety equipment and vehicles. Think about what you have poured into these items over the years -- it adds up.
You can liquidate the fixed assets yourself, but that takes time. If you are making rental or mortgage payments on your premises, time is money. Furthermore, there are some assets that sell more easily than others for whatever reason. You can very easily find yourself trapped in your no longer productive plant, waiting for just the right person to buy that fireproof cabinet or the older two-colour press.
An Auction Sale affords you the opportunity to sell for fair market value, virtually everything in your plant that is not nailed down in one or two days. Typically a printer wishing to buy your cutter will also have a need for a dolly, a desk or your leftover copier paper. A five year old Mac and a paper shredder are of interest to the home office market. You receive your money and a cleaned out plant immediately, leaving you free to go on with your life.
We have a number of ways to structure an Auction Sale which we would be pleased to discuss with you. If you are considering selling your business, why not see what we can offer you. Call us at (416) 487-1802 or e-mail info @ graphic-auction.com.