What Livonia buyers usually look at
| The building | Whether you lease or own, the years left, and whether the space fits a buyer's plans for growth. |
|---|---|
| Equipment list | Every machine and vehicle, its age and condition, and anything still owed on it. |
| Customer mix | Sales by customer for three years and how much rides on the top few accounts. |
| Skilled staff | Who runs the floor, who quotes, and who has been with you long enough to train others. |
Industrial Space Is Part of the Deal
Most Livonia companies operate out of a single industrial building. Moving heavy equipment is costly, so buyers usually want to stay put.
If you lease, check how many years are left and whether the landlord must approve a new tenant. If you own, decide whether to sell the building, keep it and rent it to the buyer, or sell it separately.
Owners who rent the building to their own company at a low rate should know buyers will value the business at market rent.
Customers Spread Across Industries
Livonia shops often serve a mix of auto, aerospace, medical and industrial customers. That mix is worth something. A buyer feels safer when no single customer makes up more than about 15 to 20 percent of sales.
Distributors with hundreds of small accounts can sell especially well for the same reason.
Equipment and Lenders
Lenders often use equipment as part of the collateral for an SBA loan. An up to date list with serial numbers, ages and liens makes the appraisal go faster. Liens get paid off at closing.
People Who Know the Work
Buyers want to see that the shop runs when you are not there. A plant manager, an estimator and a few long serving leads make a big difference to price.
If you still quote every job yourself, start teaching someone now. A buyer will ask who quotes after you leave.
Michigan Filings at Closing
Equipment sold as part of the whole business is usually not hit with sales tax as a one time sale, though inventory and vehicles are treated differently.
See our sales tax guide. You will also close your state tax accounts, covered in the Form 163 guide.
Want to know what your company could bring? Send the short form or call (313) 555-0152. If you run a molding shop, read selling an injection molder.