Business Exits By Industry
Selling a Corporate Gift Services Business
Many business leaders say that now isn't the time to try to sell a corporate gift services business. At Gaebler, we think it's a great time to sell a corporate gift services business. Here's why . . ..
The economy isn't the only thing that is uncertain these days. So are corporate gift services business buyers, many of whom are waiting to pull the trigger on their next acquisition.
Eventually, it will the time will come to exit your business. And when that day arrives, you need to know how to sell your corporate gift services business in a way that achieves positive outcomes for you and the business.
Sale Costs
The calculation of your asking price should include a buffer to cover the expense of the sale process. Good brokerage takes a 10% success fee off the top of the final sale price. Attorneys, accountants and appraisers work for a flat fee that can range from hundreds to thousands of dollars. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Selling to a Family Member
The idea of passing a business along to a family member sounds idyllic to many business owners. in reality, a family-based corporate gift services business sale can be more complicated than selling to a stranger. In fact, selling your corporate gift services business to a family member can quickly become a no-win proposition. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. If possible, discuss a long-term, generational transition with the entire family and seek the advice of a professional consultant.
Moving On
The decision to sell your corporate gift services business can't be made without adequate consideration of what will happen after the sale. many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. In today's market, many buyers expect seller financing - a concession that might not be a possibility for sellers whose next step requires the entire proceeds at the time of the sale.
Share this article
Additional Resources for Entrepreneurs