Business Exits By Industry
Selling a Coffee Service Business
Forget about what you read in the paper -- coffee service businesses are being sold everyday and the business-for-sale market is poised for even greater growth in the months ahead.
Dire economic forecasts have forced many coffee service business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
Too often coffee service business sellers fail to receive fair market value for their businesses. That's unfortunate because all it takes to get a fair price in today's market is ample planning and an awareness of what's important to buyers.
Understanding Market Timing
Now may be the best time to sell a coffee service business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on coffee service businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
After the Sale
The way you exit your coffee service business is just as important as the way you sell it. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
Buyer Concessions
Most coffee service business 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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