Business Exits By Industry
Selling a Canning Equipment and Supplies Business
Despite the pessimistic mood of many sellers, your canning equipment and supplies business can be a high value acquisition target for ambitious entrepreneurs -- even in today's tough economy.
The business-for-sale market is just as frustrating for buyers as it is for sellers these days. There are lots of buyers who want to own a canning equipment and supplies business, but have limited capital to get their foot in the door.
Many canning equipment and supplies business sellers sell for a price that is well below market value. Smart sellers know the value of their companies are prepared to identify buyers who are willing to pay top dollar.
Laying the Groundwork
A successful canning equipment and supplies business sale begins with careful planning. Although you are convinced your business has value in the marketplace, the planning process establishes a framework for communicating its value to prospective buyers. Professional business brokers understand buyers and know how to properly communicate a canning equipment and supplies business to the marketplace. At a minimum, you'll want to position your business to receive the highest possible sale price, prepare a packet for prospective buyers and perform an initial appraisal before you put your canning equipment and supplies business on the market.
Tips for Seller Financing
Business buyers are in a capital crunch. Financial institutions have tightened up their lending policies, making it difficult for inexperienced and undercapitalized entrepreneurs to buy canning equipment and supplies businesses. As a result, buyers expect sellers to finance a significant portion of the sale. It's common for sellers to finance as much as 70% of the purchase price with a payoff period of four or five years, sometimes in the form of a balloon payment at the end of the repayment period.
How Much Does It Cost to Sell a canning equipment and supplies business?
In a canning equipment and supplies business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a canning equipment and supplies business sale. Likewise, you'll need to consider how much it will cost to promote the sale as well as the lost time it will take for you and your team to navigate the sale process.
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