Niche Exit Planning Strategies
Selling a Data Storage Business
There are few things as intimidating as selling a business in a sluggish economy. Fortunately, a data storage business sale isn't as scary as it seems.
The data storage business-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.
At Gaebler, we think that's a mistake because with adequate preparation and the right sale strategy, this might be the best time to put your data storage business on the market.
Seller Financing
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized data storage business 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.
What About Market Conditions?
No one plans to sell a data storage business in a down economy. Although the economy is gaining steam, recovery is slow and entrepreneurs are holding their cards close to their vests. But when the economy fully rebounds, a shadow inventory of data storage businesses will flood the market and drive prices down even further. 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 storage business as attractive as possible so to buyers right now.
Handling Unexpected Outcomes
If you're smart, you entered your data storage business with a set of assumptions about what it would achieve. 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 data storage business. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.
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