Niche Exit Planning Strategies
Selling a Desk Retailer
Selling a desk retailer doesn't happen overnight. It takes a deliberate process to get top dollar for your company.
The desk retailer-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.
In a skittish economy, desk retailer sellers can access several strategies to receive fair market value from entrepreneurs who understand the value of a good business investment.
Closing Strategies
Today's desk retailer buyers expect sellers to offer concessions to persuade them to close the deal. 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. A limited amount of training and mentoring may seem inconsequential to you, but to a young desk retailer owner, they can be critical launching points for their ownership journey.
Benefits of Third-Party Assistance
Rarely, if ever, do owners sell a desk retailer without outside assistance. Although it's wise to recruit a business broker, brokerage isn't your only concern. Additionally, you may want to hire professionals for legal, valuation and other functions before you put your business on the market. The early recruitment of external resources reduces your risk and results in a more predictable final outcome.
Average Preparation Time
There are no effective shortcuts for selling a desk retailer. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a desk retailer can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
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