Niche Exit Planning Strategies
Selling a Deck Materials Business
You've learned a lot during your tenure as a deck materials business owner. The next step is to position your business for the demands of the business-for-sale marketplace.
The business-for-sale market is just as frustrating for buyers as it is for sellers these days. There are lots of buyers who want to own a deck materials business, but have limited capital to get their foot in the door.
Despite the conventional wisdom, we believe current economic conditions are right for selling a deck materials business. Here's how to do it . . .
Closing Strategies
Seller concessions sweeten the deal for buyers and are a necessary fixture in a sluggish economy. Concessions can consist of non-cash as well as cash incentives. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. In the current economy, seller financing is becoming common in deck materials business sales. If the prospect is inexperienced or lacks credentials in the industry, you can also offer to stay with the business for a specified period of time to help the new owner get on his feet and introduce him to your network of industry contacts.
Leveraging External Resources
At some point, you're going to need help selling your deck materials business. The enlistment of a qualified business broker is an excellent first step. Additionally, you may want to hire professionals for legal, valuation and other functions before you put your business on the market. In most cases, your sale strategy will call for the assistance of outside professionals at various stages throughout the process. Early recruitment makes it easier to execute your strategy without unnecessary interruptions.
Timing the Market
Timing is everything when it comes to selling a deck materials business. With interest rates at all-time lows, it's easy to see why deck materials businesses are an appealing investment opportunity for savvy investors. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. Market conditions can be intimidating. But your larger concern should be whether or not your business is ready to be presented to qualified sale prospects.
Share this article
Additional Resources for Entrepreneurs