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  • Roy Strauss

Supply Chain Profitability - Selling a Supply Chain Business

Keys to Selling a Supply Chain Business

If one is selling a manufacturing, wholesale, distribution, mail order, or on-line business it is important to show the business in the best way possible like staging a house one would sell. Key variables include the facility itself, equipment - storage, material handling, automation, and manufacturing as applicable; inventory – products, raw materials, and supplies as applicable; staff - retrained; and technology (hardware, software, electronics, and accessories).

It is most important to feature the business where it excels, to fix deficits whenever possible and/or cover them up to sell the business at the best price.

One must audit their operation and discover deficiencies throughout.

Then determine quick fixes that are easily implemented wherever possible (or possibly do more to remove major deterrents to a sale) including:

> Modify the layout however possible to increase open space and do the same in the office which will look wide open and display as much space as possible for future growth.

> Clean everywhere, the business should be spotless as dirt and grime are the enemy of a sale. Remove stains from floors and walls and apply fresh paint as required. Add pictures, flowers, etc. in the office

> Remove clutter in all areas as applicable: manufacturing, warehouse, office, etc. Perspective buyers should experience a wide open, pleasant environment.

> Tour the whole facility. Remove all loose product, torn cartons, and any visible packing material. Clean dust everywhere.

> Review all equipment and remove either permanently or from sight whatever is old, obsolete, dirty, etc. The buyers should see as much timely, modern, and “state of the art” equipment as possible throughout the operation.

> Do the same with old, out of favor or unsaleable product.

> Review operating procedures and streamline them as much as possible. Many people moving around will be a distraction and viewed as disorganization.

> Train all employees throughout to speak to visitors in a polite and professional manner and never to say anything negative to visitors. (This should have been the company practice all along) but can be crucial to selling and getting maximum value for the business.​ If the employees know the business is for sale one may want to provide a script so your message to the buyer is communicated.

> Regarding technology, things are changing so fast that one buyer may think the equipment is “state of the art” and another buyer may think it is obsolete. Be prepared to address in detail just how well the equipment supports business operations throughout.


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