Niche Exit Planning Strategies
Selling a Data Communications Equipment and Systems Business
A good business is about more than dollars and sense. To make your data communications equipment and systems business what it is today, you've had to fully invest yourself in its success. But the hard work isn't done yet. Before you can make a graceful exit, you will have to invest yourself in your business sale.
When the economy recovers, we expect to see a sudden influx of data communications equipment and systems businesses in the business-for-sale marketplace. Although these companies have been for sale, their owners have resisted listing them until a better economy materializes.
Although it takes hard work and dedication, if it's time to exit your data communications equipment and systems business there is a good chance you can sell it for a good price -- even in today's market.
Identifying Serious Buyers
Unfortunately, many of the prospects you will encounter aren't serious buyers. Even though tire kickers are a fact of life in any sale scenario, they sap valuable time and energy that could be spent identifying more serious prospects. If you aren't sure what to look for in a serious buyer, ask your broker for advice. As a rule, they limit the amount of information that is provided in the initial stages of an engagement, waiting to reveal the juiciest details of the business until the prospect has been thoroughly vetted. Smart sellers may require prospects to provide background and financial information fairly early in the process as a way of verifying the financial capacity to close the deal.
Current Market Conditions
At first glance, today's market would seem to be a hostile place for data communications equipment and systems business sellers. Entrepreneurs and investors still exhibit healthy skepticism, despite initial indication that recovery has begun. Despite the risks, sellers need to be cognizant of the fact that there is a large volume of data communications equipment and systems businesses waiting to be listed until the economy rebounds. When that happens, the buyers' market will become even stronger and have a negative impact on prices. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your data communications equipment and systems business as attractive as possible so to buyers right now.
Should I Hire a Business Broker?
When selling a data communications equipment and systems business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your data communications equipment and systems business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
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