Business Exits By Industry
Selling a Cattle Feedlots Business
You've learned a lot during your tenure as a cattle feedlots business owner. The next step is to position your business for the demands of the business-for-sale marketplace.
Selling a cattle feedlots business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
In our opinion, that kind of thinking doesn't make sense. In fact, this might be the perfect time to sell a cattle feedlots business. Here's how to do it . . .
Closing Strategies
Seller concessions sweeten the deal for buyers and are a necessary fixture in a sluggish economy. But don't limit your view of concessions to financial incentives. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. A limited amount of training and mentoring may seem inconsequential to you, but to a young cattle feedlots business owner, they can be critical launching points for their ownership journey.
Pre-Sale Checklist
The upfront time you investment in the sale of your cattle feedlots business will pay big dividends at closing. The first item on your checklist should be a reality check -- if you plan to sell your business for top dollar in just a few short months, you need to adjust your expectations%However, your first priority should be to set realistic expectations for the selling process and its eventual outcome. After you have consulted with a business broker to right size your expectations, you'll need to add several items to your checklist, including financial statement preparation, pre-sale appraisals, financial planning, market positioning and other tasks designed to communicate value to prospective buyers.
Brokerage Benefits
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. Second, a good business broker is a master at confidentiality locating cattle feedlots business sale prospects and guiding sellers through negotiations. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
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