Niche Exit Planning Strategies
Selling a Dairy Farm
We hear it all the time: 'This economy is a hostile environment for a business sale.' However, dairy farms haven't heard the news and are reporting steady action on the business-for-sale market.
Waiting for better economic times to sell your company? That's a common anthem in the small business community.
To achieve your goals, you'll need to know the market as well as key business selling techniques. As a business seller, you need to go into the process with the mental goal of presenting your business in the best possible light.
Handling Unexpected Outcomes
Every business seller dreams of a fast sale and a fat payday. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your dairy farm. If price is the most important outcome, you may need to agree to seller financing or other concessions. If a fast sale is the highest priority, you may need to lower the asking price to quickly capture the attention of the marketplace.
Seller Financing
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized dairy farm buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Average Timeframes
Hoping for a quick dairy farm sale? You may be disappointed. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. Before you can list your dairy farm, you'll need to invest as much as a year in preparing it for prospective buyers. In a good market, an attractive dairy farm can sell in as little as a few months, although it can take more than a year to find the right buyer after the business is listed.
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