Business Exits By Industry
Selling a Cat Dealer
Market shifts affect business values and the cat dealer industry has seen more than its share of fluctuations in business values. Many sellers have exited their companies under less-than-ideal circumstances. Yet it's still possible to achieve personal and professional goals when selling a cat dealer in the current economic environment.
Are most buyers timid about buying a cat dealer in today's economic environment? You bet.
Many business owners don't know that cat dealerships are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Sale Costs
The calculation of your asking price should include a buffer to cover the expense of the sale process. Although they can significantly increase the final sale price, brokers typically receive a 10% commission. Professional consultations can also represent a significant expense during the course of a cat dealer sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Advertising Your Sale
Successful cat dealer sales incorporate comprehensive advertising plans. However, confidentiality and other concerns can present challenges, even for sales professionals. If sale information leaks out, competitors can use it to steal customers and circulate negative messages about your business throughout the industry. The best way to advertise a cat dealer is to enlist the assistance of a business broker who is skilled in locating and contacting prospective buyers.
Turning the Tables: Buyer Concessions
Most cat dealer sellers realize they will need to offer concessions to sell their businesses. But for every concession you grant, there may be an opportunity to obtain a concession from the buyer. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
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