Business Exits By Industry
Selling a Cigar and Cigarette Accessories Business
Over the past few years, the cigar and cigarette accessories business marketplace has been a shaky environment for sellers. Sellers have adapted their strategies to accommodate changing market realities, incorporating a handful of proven techniques for selling a cigar and cigarette accessories business during challenging economic times.
Dire economic forecasts have forced many cigar and cigarette accessories business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
There are many factors involved with the decision to sell a business. That's why we think it's important for cigar and cigarette accessories business owners to know that it's possible to sell a business in any economy. To improve sale outcomes, you will simply need to tailor your cigar and cigarette accessories business to today's buyers.
Leveraging Seller Concessions
In the current marketplace, seller concessions can make the difference between a business sale and a cigar and cigarette accessories business that languishes on the market for months or even years. By far, seller financing is the most sought-after concession, especially in the current economic environment. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
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. Even more, the best brokers have a track of record of discreetly identifying likely buyers and contacting them on your behalf. 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.
Before You Sell
The upfront time you investment in the sale of your cigar and cigarette accessories business will pay big dividends at closing. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. Once your expectations are in the ballpark, you can move on to making your business presentable to prospective buyers.
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