Sell a cosmetics Manufacturing Business
How do you sell your cosmetics business? There are various ways to sell your cosmetics business, and hiring a business broker is one of the most effective. We have sold multiple cosmetics manufacturing companies in the past and already have a list of interested and qualified buyers.
Are you looking to sell your cosmetics brand business? If so, you probably want to talk with an M&A Business Broker that has experience selling cosmetics companies. They will be better equipped to answer your questions such as: How much should I sell my cosmetics manufacturing & distribution business for? And what is the process of selling a cosmetics company?
Synergy Business Brokers has over 15 years of experience selling manufacturing & distribution companies, including cosmetics companies. We have potential Buyers for a Variety of Cosmetics Companies, including manufacturers & distributors of the following types of cosmetics:
- Body Lotions
- Cosmetic Packaging
- Eye Shadow
- Hair Styling
- Laser Cosmetics
- and more
Whether your company has a brand name or you do white label contract manufacturing, we have potential buyers for your cosmetics company as long as your annual net income (including your salary and benefits) is between $250,000 to $7 Million. For cosmetics companies with net earnings in this range, we offer a confidential consultation with no fee until your cosmetics company is sold. We can also sell your cosmetics marketing and distribution company.
Confidential Sales of a Cosmetics Company
All of our clients are concerned about the confidentiality of the sale of their business. So our standard process is one of protecting privacy. We don't advertise and market the name of your business or exact location. We'll develop a profile about your business, which includes general information. Before providing the details, we require that potential buyers sign a confidentiality agreement and provide information on their qualifications.
In addition to our current buyers of cosmetics companies, we'll market your confidential profile aggressively on the internet, social media, direct contacts and through our network of 30,000 potential buyers. The potential buyers include other cosmetics and consumer products companies, private equity groups, wealthy entrepreneurs, and companies that want to enter the cosmetics industry.
We typically have to speak with a large number of potential buyers before we have one that is interested enough and qualified to introduce to you. We do the screening and weed out tire kickers. It usually takes about 1 to 8 weeks to make the first introduction, and it can be 1 to 6 buyers that we introduce to sell the business. From start to finish, to sell the business, on average, it's 6 to 10 months but can be shorter or longer. For more on the timeframe, you can read: How to Sell a Business Quickly.
The Value of a Cosmetics Manufacturing Business
We'll find out more about your business during our confidential consultation to position it to effectively market it and give you a possible asking price. We'll ask questions such as:
- Do you manufacture your cosmetic products, or do you produce for other cosmetic brands?
- Do you sell only your own cosmetic products, or do you distribute other manufacturers' products?
- Who are your raw material suppliers?
- Who are your customers?
- Can you tell me what your role in the company is?
- What departments in the company do you have, and what are the skill sets of the employees?
- How could a new owner come in and grow your cosmetics company?
- Do you have a popular cosmetics brand, or is your company a behind-the-scenes cosmetics manufacturer?
The cosmetics industry has seen consistent growth, so, fortunately, there are plenty of potential buyers for profitable cosmetics companies. We'll need the last three years of your tax returns and recent profit and loss statements to give you an inherent value. We'll also want to identify your owner's salary, perks, and benefits to represent the owner's total compensation accurately. Every cosmetics company is unique, but we'll need to compare what other similar companies have sold for to price the business within the proper range. Of course, you will also need to be OK with the number for us to start marketing it.
Steps To Sell Your Cosmetics Manufacturing Business
As we said from the start, there are multiple ways for a cosmetics manufacturer to sell their business. The below steps provide insights into the process of selling your company.
Step 1: Contact Us To Sell Your Cosmetics Manufacturing Company
To start the process of having a cosmetics business broker, you have to contact us. We will then work with you and set up a meeting to discuss a more in-depth sales process for your business and the value of your business. As we mentioned, we work with all of our clients to provide a confidential consultation for the sale of their business. Keeping the sale of your business confidential can seem difficult, but with our experience, we can sell it effectively without word spreading your company is for sale.
Step 2: Know The Value Of Your Cosmetics Manufacturing Company
At Synergy Business Brokers, we will help you determine your cosmetics business's value by providing a business valuation. A business valuation will help you know how much your business is worth. We take into consideration a wide variety of factors so we can list your business for optimal value. We'll want to understand whether you sell private label beauty products, have a recognized personal care beauty brand, what type of customer service you provide, and more. Do you sell through an online store or retail stores, and are your care products sold throughout the United States or just in a specific region?
Step 3: Meet Potential Buyers Of Your Cosmetics Business
This might seem like we skipped a few steps because Synergy Business Brokers is working in between steps 2 and 3. When we market your company for sale, we go through the different buyers to remove people who aren't qualified and to find the best possible buyer for your cosmetics company. That is when you will meet them, and we will discuss the terms of the sale of the business to come to an agreement.
Step 4: Finalize The Sale Of Your Business
Step four looks different for many business owners, especially cosmetics manufacturers. Depending on the contract, you may be staying with the business for a while to make sure it transitions owners effectively. Some businesses can go through this transition quickly, while others may take a longer time.
Contact M&A Business Brokers with experience selling cosmetics companies
Synergy Business Brokers has experienced M&A Brokers in NY, CT, MA, TX, PA, La., and NJ, and we sell cosmetics companies throughout the US. To get started, you can call 888-750-5950, email [email protected] or fill out our form online. We look forward to hearing from you. We specialize in selling cosmetics companies with annual revenues of $700,000 to $70 million.