There are many challenges to consider when selling a small business like a CNC machine shop or metal fabrication shop.
Common Challenges
There are common challenges for every type of small business according to Murphy Business.
Understanding the true value of a small business.
Ultimately, the value of a business is what someone is willing to pay for the business. Metrics like profitability, the value of equipment & real estate, business outlook and customer base are good starting points to value a CNC machine shop.
The emotions involved in selling a small business.
Selling a business can be stressful. Most owners have worked extremely hard to build their business. Parting with the business can be difficult even when an owner has decided to sell. The process of negotiating a sale, terms and conditions, can be lengthy and grinding.
Specific Challenges
Although finding the right buyer can be a challenge for any type of business, it can be extremely difficult for owners of machine and metal fabrication shops.
The reason this is such a challenge is because the number of people with manufacturing knowledge has been in decline for several years. Therefore, the population of potential buyers has been in decline.
Manufacturing is one of the more popular careers for the baby boomer generation. This is the generation that may be considering selling a CNC machine shop.
Millennials and Gen Z prefer careers aligned more with technology, digital marketing and AI. Perhaps someday these generations can be convinced that there is a lot of cool technology in manufacturing.
About C&C Machine
Our business is not for sale. We simply found this topic interesting. We are family-owned and have been in business since 1980. We have three generations working in our shop. The third generation is learning and working to take over the business someday.
