If a middle-market manufacturing company owner has ever considered selling the business, now is an excellent time. The strong economy, high public market valuations, continued consolidation in manufacturing, and other factors are creating the most favorable climate for sales in memory. But the questions is, is it the right time to sell for you?

As advisors to middle-market manufacturing companies, we can tell you maybe -- and maybe not. The decision depends on the specific company and its particular owner(s). This article summarizes important points to consider, as well as some of the keys to a successful sale. Ideally, the owner will make the most informed, balanced decision possible and will do justice to the years of hard work he’s put into his company.

Points to Consider

In counseling owners who are weighing whether to sell the business, we help them consider economic, business, and personal aspects of the question. For example:

Economic. For a variety of reasons, there has probably never been a better conflux of factors favoring sales as there is today. A strong stock market has created high valuations for many public companies, giving them access to cheap capital and an appetite for acquisitions. The proposed end to an accounting method known as pooling of interests is giving buyers added incentive to make acquisitions within the next year. In manufacturing, as in many industries, consolidation is creating many opportunities for small and mid-size companies that want to sell. For some companies that have stayed independent, consolidation is presenting new competitive pressures on pricing, distribution, and service.