Niche Market Exit Planning Tips
Selling a Bedroom Furniture Business
Unfortunately, many sellers are waiting to list their bedroom furniture businesses until the economy fully rebounds. We think that's a mistake because for the right buyers, bedroom furniture businesses are a great investment.
In any economy, there is a right way and a wrong way to sell a business.
Too often bedroom furniture business sellers fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
Working with a Professional Accountant
Accountants lay the financial groundwork for a business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. You may also want your accountant to assist in the preparation of professional financials to present to serious buyers. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
Negotiation 101
As a business seller, you have to be at the top of your negotiating game. Information is the key to a great bedroom furniture business negotiation. However, the first step in good negotiating is to develop a sense of what you need to get out of the deal. A thorough understanding of sale price, possible concessions and other bottom line requirements gives you the ability to negotiate with confidence. If you aren't sure what you need, put negotiations on hold until you gain a clearer understanding of your own deal parameters.
Sale Preparation Timeframes
There are no effective shortcuts for selling a bedroom furniture business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. Since all of this takes time and effort, a bedroom furniture business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Share this article
Additional Resources for Entrepreneurs