In the United States, the industry of signing and identity products serves more than 1.000 segments in virtually all sectors of commercial and industrial activity.
And if you own a business like that, you probably know that everyone who also owns their businesses one day will need a service like your company provides, especially stores, restaurants and other commerce businesses.
So if you have decided to sell your business, you should do it for the best price possible, right? In order to do that, you must make the correct valuation and sometimes this needs professional help, such as a business broker.
But you can always prepare all the documents and take a look at your finances in order to established your asking price.
What is your Sign Manufacturing business worth?
However, before you do that, you have to learn how to value your sign manufacturing correctly.
The very first thing is gathering all finance data you can find from the past three to five years and compile them into a major and complete report. Potential buyers will probably ask you about your finances and it’s very important you have all the information they need.
Look at these metrics and make sure you have all the answers:
- What are the sales?
- What is the profit?
- What are the growth trends?
- What is driving new sales and is that sustainable?
- What channels do new customers come from and what is the breakdown of each channel?
- What is your market position?
- Is your Location favorable?
- How reliant is the business on the owner?
- What systems and processes are in place to run the business?
What makes a Sign Manufacturing business worth more?
Your sign manufacturing company will be valuable if there has been a great deal of investments in technology in order to attend to the needs and expectations of customers, employees, government and also the environment.
This is the check list which adds value to your business. Make sure you have all the answers before setting your asking price:
- Have you improved the quality of your product over the last years?
- Do you provide a highly qualified and customized work?
- Do you diversify the supply of products – printing labels, panels, banners and stickers?
- Do you adopt sophisticated techniques and automated printing?
- Do you make use of manual and craft procedures, if necessary?
- Do you have modern equipment that provide printing and inspection of the final product?
- Do you prioritize the total quality of the production and offer the market products with greater physical strength and durability?
- Do you have the latest equipment to apply standards of national and international specifications?
- Does your business reckon on tools and machinery as a digital printer and laser cutting machine?
If necessary, take a look at these other metrics. They can help you to provide potential buyers with as much as information as they want:
- Predictable key drivers of new sales
- Stable or growing traffic from diversified sources
- Established suppliers of inventory with backup suppliers in place
- Traffic stats
- High percentage of repeat visitors and repeat sales
- Clean legal history
- Brand with trademark, copyright or legal concerns
- Documented systems and processes
- Growth potential
What does the average Sign business sell for?
Since 2005, there has been only 55 sign manufacturers sold in the United States, totalizing $23 million in negotiations. It’s true that they are not a common business, although every business needs a sign for identification, but if you look at the average sales price, you’ll notice that it’s pretty high: $422,313, which means it’s quite a profitable market.
Average multiple is a little bit up to 2.3, meaning that average asking price is more than two times bigger than total gross incomes.
What is the most frequent deal size?
Most frequent deal size, however, is much smaller than average sales price: only $50k. It happens because most of the 55 sign manufacturers sold in the past ten years were negotiated for less than $250k, as you can see in the chart.
Is the Sign Manufacturing market getting bigger?
As it’s not a very common market in the negotiations table, sign manufacturing industry is not getting bigger, but isn’t getting smaller also.
If you have decided to sell your business right now, you’ll probably get a good profit from it if you know how to make the correct valuation. Pay attention to the tips we provided you above.
Are bigger businesses worth more?
In this case, yes. Usually, the rule is the bigger the business, the higher the profit.
However, as you can notice by looking at the chart, if a sign manufacture owner have sold his business in 2015 for $250-500k had more profit than businesses sold for $1-2 million, for example.
In 2012, the same happened: businesses sold by less than $250k had a multiple of 1.99, while companies sold between $500k and $1 million had a multiple of 2.0.
What states have the most Sign business deals?
Are you wondering where the most deals were made throughout the country, or if your state has a hot market to sell fast? As you can see if you are located in California, Florida or Texas, you may get a lot more offers than if you are in Columbia or Idaho. But sometimes you can overcome the low number of deals with investors or competitors looking to enter a specific new area, and get lucky with an offer.
Why would you sell in the first place?
The reason to sell always varies from each person. Maybe you are looking for new challenges, businesses and opportunities, or you just want to enjoy your family and retire. Although it can seem tempting to get your hard-worked cash, make sure that you are clear on the motives so you don’t regret afterwards.
How long will it take to sell your Sign business?
If you have read all the necessary steps to understand your valuation, and think you have focused on all the topics that make your company worth more, it is maybe time to start the process. Selling your business is a long-term process, and doesn’t happen overnight. Usually companies sell in 12 months, but you can also see deals getting closed in 6 to 9 months depending on the opportunity.
What is the process of selling your Sign business?
This step by step process will help you get less confused when you make sure you are ready and confident to let go of your business, and perform a nice and positive sell. Many entrepreneurs forget about a step, or just don’t have the right guidance to know all the stages necessary and get lost through the process. Don’t forget to go through all of these, and if you have any questions, comment at the end of the article or contact us for more help.
Who will buy your business?
If you are wondering about the buyers that can be interested in your Sign Manufacturing, don’t worry, there are many options and possibilities. From First Time entrepreneurs, to businessmen interested in new opportunities, the chances are that in the sign manufacturing industry it may likely be a person who already had a store in the field.
Since 2005, there were very few sign manufacturing businesses sold, so the market situation is stable.
If you have decided to sell your business right now, it’s very likely you get a good profit from the sale.
If you want to start accelerating your buyout process, fill out our free valuation form and get your business valued today. Leave your comments on any doubts or feedback, we are glad to hear your thoughts.