Business Exits By Industry
Selling a Custom Leather Goods Business
For the right sellers, the business-for-sale marketplace is a friendly environment for custom leather goods business opportunities. There aren't any guarantees, but if you adhere to fundamental business sale concepts, you can likely get a good price for your business.
In a down economy, many custom leather goods business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of custom leather goods businesses that are actually for sale.
If you're looking for a reason to wait to put your business on the market, you'll find it. Selling a custom leather goods business isn't easy, but we believe sellers can achieve their goals in any economic environment.
Sale Costs
In a custom leather goods business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a custom leather goods business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Maintaining Objectivity
Emotions run high during the sale of a custom leather goods business. Sellers typically overvalue their companies compared to the rest of the marketplace. In our experience, the most successful sales are ones in which the seller has made an intentional effort to remain objective and set realistic expectations. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
Pros & Cons of a Sale to an Employee
Employee sales have pros and cons. A key employee may seem like a natural sales prospect. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. However, some employees feel they are entitled to special treatment and pricing, especially if they have played a key role in the company's success. A seller-financed deal may be necessary unless the employee has significant assets or investor backing.
Share this article
Additional Resources for Entrepreneurs